Bankruptcy Articles

by William Blake

So you had to file for bankruptcy. Unforeseen circumstances can cause this to be the only option. However, just because you were once bankrupt does not mean that your future is grim.

Bankruptcy is a hard choice to make. Millions of people have experienced it and come out on the other side. It won’t be easy, but you can recover from this type of financial disaster. Bankruptcy is not the end.

Your credit can be repaired after going through a bankruptcy. Start by paying your bills on time. If you filed for a Chapter 7 bankruptcy, your debt would have been wiped out along with some of your assets.

Appreciate what you still have left. You have your home. Build a record of paying bills when due and that will help with fixing your credit.

After a few months, apply for a secured credit card. Secured cards require the cardholder to pay a deposit. This is the money that you will start with. Over time, you may qualify for an unsecured credit card.

Have just one credit card and try not to put too many purchases on it. Keep it just for emergencies if possible. You can regain your credit by having a credit card.

It’s better if you can pay cash for items. Try not to buy anything unless you have the cash on hand. This may be the reason that you needed to file bankruptcy to begin with. By going back to using cash, you have a chance to build up a bank account balance or savings account balance.

Create a plan for success. You have been bankrupt once so you don’t want to go there again. Divide discretionary money between savings and a fund for emergencies. Since your debt was wiped out, there should be no credit card payments to consider at this time.

Once you get that first credit card, companies will start hounding you. Don’t give in to them. Be flattered, but resist the urge to get started with the credit card debt cycle again.

Teach yourself to live with what you can afford. Save for a rainy day. Go to credit counseling or talk to a financial advisor. Credit counselors are experienced in money management and spending tips.

A financial advisor can take the money that you save and invest it for your future. Someday you’ll probably retire and that could last for up to thirty years. It’s crucial that you have enough money to take you through your retirement. You can focus on that part of your finances while you’re waiting to re-establish your credit.

Bankruptcy doesn’t have to be the end. With a little time and patience you will recover and control your finances again.

About the Author:

If you’re thinking about using debt consolidation to pay off your credit cards, there are some things you need to know. Visit the Debtopedia website to learn more about debt consolidation and to get your free copy of my special report.

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by William Blake

If your finances are in a mess, you may have considered bankruptcy. Even though your debt may be wiped clean, there are many other end consequences.

If you find that you can’t seem to pay your bills every month, you may consider filing for bankruptcy. As a consumer you have two choices: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is when all your assets are sold off in order to pay all or part of your debt. With Chapter 13 bankruptcy, it’s more of a debt restructuring and you will make a plan to repay part of the debt overtime to your creditors.

Your credit will be damaged if you file for bankruptcy, maybe for as much as ten years. If you apply for any credit during that time the creditor will be informed of the bankruptcy.

Previously, people have taken advantage of bankruptcy laws. They were allowed to file more than once for Chapter 7 so many used it to wipe out all their debt.

Each state decides on what assets they will exempt from being seized during a bankruptcy hearing. Knowing that, some may use available cash to purchase those items (homes, cars, etc.) in an effort to avoid payment and still retain the stuff they purchased. In this instance, creditors receive little or nothing from the bankruptcy settlement.

The new laws concerning bankruptcy have changed this. Whereas courts used to have the leeway of deciding who could file for Chapter 7 bankruptcy, there are now criteria that must be met first. In order to file for Chapter 7 bankruptcy, a person has to have an income that is below the median income for the state where they live. Their income must be put through a calculation that determines if they have enough disposable income to pay twenty-five percent of their outstanding debt.

More people that file bankruptcy will have to file under Chapter 13. The courts decide what a person could pay from the information provided to them. There is an allowance made for rent/mortgage, food, and other pertinent bills. With the new bankruptcy law, standards set by the IRS determine allowable values for each of these bills. A certain amount is exempted, and the payments are determined from the rest.

Lawyers are charging more than ever because declaring bankruptcy has become much more involved. The whole process will cost the client much more than before which will hopefully make them think twice about filing. Credit counseling is also required as a first step before filing bankruptcy. The counselor may be able to help you and rule out the need to file.

Filing for bankruptcy is a major issue and should not be taken lightly. Although it clears your debt, it does come with its own price tag.

About the Author:

Are you tired of barely keeping up with your credit card debt? Get some simple debt consolidation tips on the Debtopedia website. Get a free copy of my report “Secrets Of Credit Card Debt” at http://www.debtopedia.com

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by William Blake

None of us ever plan to go bankrupt but you hear about it happening to large corporations all the time. Finding an alternative to bankruptcy could save you a lot of hassle.

Think about a debt consolidation loan. Debt consolidation means that all of your debt is put together and a loan secured for the total amount. Creditors are paid what is owed to them and the bank that issued the loan is given a monthly payment that is within reason for the consumer.

Debt consolidation mostly includes unsecured debt. This would be credit cards, store credit cards, unsecured lines of credit from companies, and gas cards. Unsecured debt is what creditors have a hard time recouping from people because it is not backed up by any collateral.

If you can’t find a bank that will give you a debt consolidation loan, go through an agency. The agency counselors are used to working with creditors and will negotiate on your behalf. They can get your debt dropped by as much as sixty percent. You then make just one monthly payment to the agency, and they take care of the rest with the creditors.

You do not have to liquidate your assets to consolidate you debts. In the case of bankruptcy, the court may order you to sell your belongings to raise money to pay your creditors. With debt consolidation you can keep your belongings and have another option.

Something else that you can do yourself is to get another income. It’s not the easiest thing to do but if it allows you to increase your credit card payment monthly for a year or two until it’s eliminated, it could be worth it. If you can’t manage a second job then maybe you can get some overtime at your current one. The key to reducing your debt is finding a way to bring in more money.

The second job can be a way to supplement your income while you are paying off a debt consolidation loan. Things come up without warning and you may need more cash than you have available. A second job will help you to save for a rainy day and still make payments on your debt.

Starting a home business is another option. Some home businesses can be started with little or no money if you don’t have time for a second job. Even selling items on eBay can bring in some extra cash when needed.

If you have a special skill you may be able to loan yourself out to others who could use your services. Use the extra money wisely to pay down your debt.

There are better alternatives than to file bankruptcy. The alternatives that you pick don’t need to be forever, just until you can get yourself back on track financially.

About the Author:

For more practical advice for reducing credit card debt, surf on over to the Debtopedia website at http://www.debtopedia.com. We offer lots more helpful advice to pay off credit cards and other debts, while saving interest in the process.

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