Why bankruptcy should be your last option

by admin on  at 
Posted In: Bankruptcy

There is no magic formula to decide whether bankruptcy is the right option for you or not. There is no hard and fast rule as to when you should file for bankruptcy. You can consider bankruptcy anytime you find yourself in overwhelming debts. But you should keep in mind that it is a serious decision to take. Bankruptcy is not an everyday debt relief option that you can opt for at your will. It is true that bankruptcy is crafted to erase your debts and help you have a fresh financial start. But there certainly occur some changes in your financial life post-bankruptcy which have effects penetrating into the heart of your personal life comprising of your near and dear ones!

Now, the obvious question is ‘why bankruptcy should be your last option’. A baggage of answers can be available to this. Most of these answers are influenced and colored by common myths related to bankruptcy. Most people dread it for the social stigma it bears. However, there are indeed some genuine reasons that must be taken into consideration before you decide to file for bankruptcy.

Firstly, bankruptcy filing will damage your credit score very badly. Usually bankruptcy remains on your credit report for about 7 to 10 years depending upon the kind of bankruptcy that you file. And it can question your credit worthiness and prevent you from acquiring loans and credit during the time span when bankruptcy remains on your credit report. Even if you own a business that files for bankruptcy your own credit rating will be seriously affected.

Your bankruptcy filing may have ripples in the financial lives of those associated with you. Your spouse, family, and family business may all be affected by your bankruptcy filing.  Your bankruptcy filing can also have an adverse effect on your family business even if that business is conducted as a corporation. This in turn may result in the impoverishment of the business and cause the business to lose its access to bank loans and other funding agencies. When a business files for bankruptcy, creditors, customers, and suppliers of that business will almost always be directly affected once the bankruptcy petition is filed. Your bankruptcy filing will affect any person who has signed on loan or credit contracts with you.

It is true that despite all the pitfalls bankruptcy is the most logical solution when all else fails to resolve your overwhelming debt burdens. Your decision to file for bankruptcy should be supplemented with some sound legal advice. You should consult a reputable bankruptcy attorney in your state, if you intend to file for bankruptcy. Nevertheless, bankruptcy should definitely be your last choice.

So, before you file your bankruptcy petition, try and explore all possible alternatives, such as debt settlement and other management options before you file for bankruptcy. The best thing you could possibly do is enroll yourself in a reputable credit counseling session and get educated about the various ways you can manage your debts and finances without having to file for bankruptcy.

This article is guest post by BG, who is an IAPDA debt arbitrator associated with the Oak View Law Group.

How long does bankruptcy stay on your credit file?

I had to file for bankruptcy in 2006 because of medical bills. I was wondering how long it will show up on my credit file. I am trying to improve my credit score and it is up to 685, but I think it would be higher if the bankruptcy wasn’t on there. Thanks!

Answer
Your bankruptcy will show on your credit report for 10 years from your discharge date. Example: Say you filed 03/01/2006, you bankruptcy should fall off your report 03/01/2016. The actual debt should be on your credit report for 7 years from the date of your last payment. Most of the credit bureaus are showing the dates the debts listed will be removed. If you have your credit report, it should list the date it discharged, or you can contact the bankruptcy court where you filed and they will assist you, you may need to furnish your case number or social security # so they can look your information up. Good Luck….If 685 is your current credit score..you’re already improving your credit rating with solid and good payment to have it back up to 685, Way to go!!

Powerd by Yahoo Answers
└ Tags: , , , ,
 Comment 

Obama Debt Relief Programs How To Realistically Eliminate Debt

by admin on  at 
Posted In: Debt Relief

|

Obama debt relief programs have actually helped millions of consumers to get out of their unsecured loans. In order to realistically eliminate the unsecured loans, you need to make use of the debt settlement programs available in the market. The Obama debt relief programs were actually directed towards the promotion of this particular method of relief. Settlement requires the consumers to have an overall credit outstanding of $10,000 or more and the consumers need to make sure that whole of the outstanding is with one single creditor. This will help to reduce the cost of settlement and will also help to reduce the time needed for settlement.

In their best interest, the consumers need to hire professional debt settlement firms which can go for a professional negotiation with the creditors. This is important because the creditors actually prefer professional approach. The negotiator from the settlement firm hired by the consumer will ask the person to stop paying the creditor and as the consumer follows this, the creditor waits for 90-120 days and then sells off the debt to a collection agency for only 20-30 cents against each dollar.

The negotiator then contacts the creditor and in a professional way, offers 30-50% bulk repayment of the complete outstanding and at the same time says that in case the offer made is not accepted, the consumer will be forced to file for bankruptcy as there are no other way out. The creditor will not want this to happen and will therefore, forgive at least 50% of the money that the consumer owes to the creditor. The consumer will have to then actually repay the remaining amount as per the new terms and conditions. This is how to realistically eliminate unsecured debts.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.

have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.
http://www.debt-settlements.com

contact us for free debt advice =8884442820

Can debt relief services affect your credit if you use them to lower your interest rate?

I am planning to sign up for Care One debt relief services to help me consolidate my CC debt. Do you think this will actually work? will this affect my credit rating? Does anyone have an opinion about this company and their services. I was reading their blog and for the most part it sounds like it really works but I’m trying to search for more answers.
Thank you in advance for any suggestions or feedback.

Answer
CareOne offers two services: credit counseling and debt settlement. Being enrolled in a debt management program would cause your credit report to state “enrolled in debt management.” This does not specifically damage your credit rating but it would make it virtually impossible to qualify for new credit while you are enrolled in the program…but that’s the whole point of being enrolled in a debt management program to begin with…to stop using credit.

CareOne also does does debt consolidation/debt settlement. Stay away from any “debt consolidation” company that promises to cut your debt and payments in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
——————
If you want to enroll in a non profit debt management program then I would advise to use the real one….CCCS. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…

CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy

Powerd by Yahoo Answers

||Tweet: Credit Credit card debt Reduction , The way you Will be able to Sensibly Spend Back again 50% of the Credit scor… http://t.co/C6JG8YE5
Author:Debt_relief_0 (Oscar)Tweet: Credit Personal debt Reduction * Produce a Approval Offer To your Charge card Debts,Debt relief: The significant… http://t.co/fjxYvtdA
Author:Debt_relief_0 (Oscar)Tweet: Credit Credit card debt Reduction The best ways to The actual For the Financial debt Reduction Bailout,Debt reli… http://t.co/z7cxuddq
Author:Debt_relief_0 (Oscar)


The Credit Card Debt Survival Guide

50% of $17.00 plus $50 service fee. Commissions to $21.00. How to deal with collection firms and collection attorneys. The best legal tactics attributed to debt forums, legal cases, and many users. 240 pp. linked in Toc for easy use and reference. more info…

└ Tags: , , , , , ,
1 Comment

The Pros and Cons of a Chapter 13 Bankruptcy

by admin on  at 
Posted In: Bankruptcy

Individuals who are willing to pay their debts within 3-5 years qualify for the Chapter 13 bankruptcy. This chapter is crucial as it is helpful for individuals that want to retain some or all of their assets. This form of bankruptcy in some cases offers a better solution over the conventional form of bankruptcy as listed out by the Chapter 7 bankruptcy. The Chapter 7 bankruptcy can sometimes strip the debtor of his assets. This bankruptcy can be declared by individuals who have a limited regular income and can show ability to pay back a portion of their debts over time.    

Understanding the negative aspects of this type of bankruptcy will explain the flexibility of the Chapter 13 bankruptcy. It is seen that a person who has filed for this form of bankruptcy would see it on their credit reports for a period of 7 years. Furthermore, it will be difficult to borrow large sums of money in the following years, as most of the creditors will question the worthiness of repayment of the debts. Besides this, one of the most persistent issues that surround the Chapter 13 bankruptcy is that it puts a filer on a strict and restricted budget thus, cutting off any unusual expenses that a person may have interest in. The Chapter 13 bankruptcy also does not include all debts under its influence, which means that a person with a variant case cannot file for this bankruptcy. Although, Chapter 13 is a feasible solution for filing bankruptcy, it should be understood that it limits the debt amount that a debtor can discharge.

On the contrary, this form also has its benefits in that it avoids the foreclosure of homes, as well as protection of the co-signers come under this chapter. Besides this, a debtor can still have their non-exempt as well as the exempt properties. The payment terms of most of the debts can get extended as per the rules under this bankruptcy form. Given these benefits, the Chapter 13 bankruptcy does seem to have its plus points that can be made use of judiciously.

This chapter is sometimes referred to as a repayment plan or a reorganization plan. To fully understand the depth and scope of this chapter of the US bankruptcy code, one should consult with a licensed bankruptcy attorney. Only bankruptcy lawyers can guide you through this stressful process.  

Jay King is a owner of BankruptcyIntro.com. We’ve all heard of large companies filing for bankruptcy or ‘going bankrupt’ and most of us would think that particular company must be in trouble.

What happens when you file bankruptcy nowadays?

I hear it is very hard to file for the type of bankruptcy where they abolish all of your debt. However, what about the type of bankruptcy where you pay back some of your debt? If you file this type of bankruptcy, will you definitely get accepted, even if you make a high income? How much of your debt do they make you pay back and in what timeframe? How much does it cost to file for bankrutpcy nowadays? Do you have to pay a lawyer up front? Does a lawyer guarantee you will be accepted for filing bankruptcy? THANKS!

Answer
Actually, a bankruptcy that wipes out all your debt is not much harder than before, it just requires much more documentation and there is an income “threshold” (it’s a bit of a sliding scale depending on a variety of factors). If you make below the median income you can definitely file said bankruptcy (known as a chapter 7).

Chapter 13, the type where you pay back some of the debt, is what you have to do if you have a high income and need to file bankruptcy. It is possible to have to pay back 100% of your debt if you really make a lot of money, so much that your disposable income for the next 60 months would be sufficient to pay off all of your debt. You only get accepted assuming you comply with every rule and requirement. You have to attend the first meeting of creditors, provide the trustee with the last 60 days of paystubs (your attorney will want the last 6 months), the last 4 years of tax returns (or transcripts of your return), and list all your assets and debts.

By the way Child Support, Maintenance, Taxes, Student loans etc are not dischargeable.

The percentage of debt you have to pay back really depends on the equity you have in your assets and your disposable income so there is no clear cut answer without knowing anything else about your situation. You pay it back in 60 months if you are required to file a 13 instead of a 7.

The cost for bankruptcy varies by jurisdiction so I can’t answer that for you. For a chapter 13, most attorneys will require a partial payment up front and the rest to be paid through the plan, though some require full payment. For a chapter 7 payment is always up front.

A lawyer can’t guarantee your bankruptcy will receive a discharge. Especially not in a chapter 13 where a myriad of things can go wrong. If you ever get to the point you can’t make payments, your Chapter 13 can be dismissed (though if you are proactive and your circumstances have changed, you should be able to successfully convert to a chapter 7), so no, the attorney will not and cannot guarantee results.

Also in both types of bankruptcy, you have to complete a credit counselling class prior to filing and a debtor education class after. You have to use those approved by the US Trustee in your jurisdiction, which you can access at http://www.usdoj.gov/ust/.

Powerd by Yahoo Answers
└ Tags: , , ,
1 Comment

Card Debt Relief Counselors a Friendly Shoulder for the Wounded

by admin on  at 
Posted In: Debt Relief

|

There is little doubt that credit cards make purchasing goods a whole lot more convenient. It is also easy to get one from credit card companies, bringing the temptation of owning several cards. Unfortunately most people couldn’t foresee the difficulties of having them, and they just fall helplessly over their head in debt. With this situation, the prospect of being bankrupt is not far away, and panic usually follows after such a realization. This is why it is so important to consider the help of credit card debt relief counselors before all is too late.

One of the main problems in dealing with debt from several credit cards is obviously the monthly payments, and this can be handled well with the aid of budget management advisors. They will act as a negotiator between the customer and the credit card companies, seeking for a beneficial agreement of a more affordable payment structure. This can mean smaller bills for a prolonged period of time, which will be just enough to keep you afloat in trying to clear out your credit burden.

These services also offer counseling in proper budgeting, and it is somewhat of a necessity for those who are having a hard time getting back up from their feet. Some people can’t seem to grasp the concept of setting a limit to their spending forays to prevent them from sinking deeper in debt. These professionals will make sure to keep their head straight, making them learn better ways of slicing up their budget in the process.

It will also help if the customer takes to heart that having a counselor to achieve credit card debt relief already serves as a straightforward warning that they are that close to bankruptcy. While it does sound pretty obvious, it is a glaring fact that more and more people still can’t refrain themselves from expensive purchases that their current financial situation cannot afford, often arguing with their counselors just to get what they want. This make the professional’s job even more difficult than what it already is.

They just have to remember that part of the solution lies with themselves, on how dedicated they are to eliminate their debt problems. One can always avail of these debt relief services, but they must also fully trust their credit card debt relief experts so they can focus on chipping away at their overgrown balance than finding ways to make it even bigger.

Being broke is something nobody wants, and counseling for credit card debt relief provides an opportunity for those people whose financial situation is dangerously close to that level. Through dedication, focus and cooperation with these experts, anybody can get this troubling burden out of their way.

Credit Friend enjoys writing about financial, insurance and legal issues. His topics of interests include deed of assignment, credit card debts and credit card debt relief.

What is the best way to settle your debt. Should I contact Credit card bank or debt relief company to settle?

I am a single parent and have close to $ 15,000 in credit card debt. I tried calling credit card company to make an offer in lower amount. Do you think if credit card company settle with in lower amount of payment would it affect my credit history. What is the best way to go

Answer
The credit card co. may be willing to settle for a lesser amount depending on how much you are willing to give them and WHEN (up front, or by making payments?) – This will make a difference, as they would highly prefer a lump sum up front and will be more willing to negotiate with you. Also, it WILL effect your credit rating UNLESS you are wise UP FRONT and tell them your offer is ONLY good under the condition that they do not record a negative comment on your credit report. Negative comments include: “charge-off / re-opened”, “settled.” A good comment, and the one you should insist upon is “paid as agreed.” If you cannot get the exact language then it will effect your credit rating. Tell them your only other option is to declare bankruptcy if they will not agree to the terms. Since a negative comment on your credit report lasts approx. 7 years (depends on your state), this threat may make more sense to them since there’s not much difference between 7 & 10 for you, the consumer. Bankruptcy for you means you’re total clear after 10 years, but they get zero money. They will probably want to negotiate based on this premise. Still, you must be prepared to make a reasonable offer when making these demands.

Powerd by Yahoo Answers

||Tweet: New: Free Credit Card Debt Relief Advice – http://t.co/Anph2aRr
Author:eliminate_debt1 (Daniel Dwase)Tweet: Irs Tax Debt Relief Help With Irs Problem: new niche huge conversion rate this products sell http://t.co/NyZ0qX67
Author:qn4ov (jivko qnkov)Tweet: how to get debt relief http://t.co/6PwTkFzv
Author:jeqobepuso (Haleh!!!!)


The Credit Card Debt Survival Guide

50% of $17.00 plus $50 service fee. Commissions to $21.00. How to deal with collection firms and collection attorneys. The best legal tactics attributed to debt forums, legal cases, and many users. 240 pp. linked in Toc for easy use and reference. more info…

└ Tags: , , , , , ,
 Comment 

Legal information What you should know before filing chapter 7 bankruptcy

by admin on  at 
Posted In: Bankruptcy

Every person’s situation is unique, and please meet with a bankruptcy attorney in your state to insure that chapter 7 bankruptcy is applicable to your personal situation. The following information is provided for educational purposes only.

What does Chapter 7 bankruptcy involve?

Chapter 7 is a type of bankruptcy where your debts are essentially wiped away, in exchange for your nonexempt property. This is unlike a chapter 13 bankruptcy filing, where the debtor follows a court-approved debt repayment plan. Straight bankruptcy under Chapter 7 allows you to discharge (eliminate) most debts.

Am I eligible to file for bankruptcy under Chapter 7?

Before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, anyone can file for bankruptcy under Chapter 7. Today, you are eligible only if you earn less than the median income in your state, or if you pass a ‘means test’.

You are not eligible if you had filed for bankruptcy and were granted a discharge under Chapter 7 within the past eight years.

How does the means test work?

If you earn more than the median income in your state, the court employs a complex formula (deducting costs of food, rent, mortgage… etc., calculated under IRS guidelines) to ascertain if your monthly income is less than $100. You are eligible if it is less than $100.

If your monthly income is between $100-$166, eligibility depends on the percentage of your unsecured debt that could be paid off by your income over a 5-year period.

If your monthly income is more than $166 per month, you are not eligible for Chapter 7.

What do I have to reveal?

When you file Chapter 7, you also must file a Statement of Financial Affairs and Schedules. This schedule must include a detailed description of your financial history, income, debts and assets. If you provide incorrect information, or omit some, you might not be discharged from your debts.

Will I lose some of my assets if I file for Chapter 7?

Under Chapter 7, you may have to hand over all of your nonexempt assets.

What are exempt assets?

Exempt assets are listed on your Statement of Financial Affairs and Schedules. Exemptions vary widely from state to each state. In a few states, you may choose either Federal or state laws, however in most states you may use only the state exemptions.

What are nonexempt assets?

Everything not specified above. The Bankruptcy Code requires that you turn over all nonexempt assets to the bankruptcy trustee. The trustee will then sell off these assets to pay off your creditors. However, in many cases, there are no assets left for unsecured creditors after the exempt assets have been claimed.

Can I use Chapter 7 bankruptcy to get rid of all my debts?

No, bankruptcy does not discharge all types of debt. You are still responsible for most tax claims, student loans, alimony, child support, all property settlement obligations from a divorce or separation, fraud debts, and debts from a drunk driving problem, etc.

Debts incurred through fraud are also non-dischargeable. A last minute credit card binge within sixty days before a bankruptcy filing is presumed to be fraud.

Bankruptcy Alternatives:
CareOne Credit Providers is a BBB (Better Business Bureau) Accredited Credit Counselor since 2004.
CuraDebt is a BBB (Better Business Bureau) Accredited Debt Settlement Company with an A+ rating.

How is the bankruptcy of auto makers will affect my decision of buying a new car?

I want to buy a new car but the everyday news talks a lot about the bankruptcy of some auto makers. I just wounder if I should wait till the end of the year or this kind of news have no much affect?

Answer
The best time to buy a car is in the fall, when the new models come out….
However right now would be a great time to buy a new 2008, I’m sure the bigger dealers still have some that they want to get rid of…

Powerd by Yahoo Answers
└ Tags: , , , , , , ,
 Comment