How to Handle Going Bankrupt

Bankruptcy is the legal term filed by an individual or an organization and business when there is inability of the debtor to pay their debts. Individuals drowned by debts are due to a number of factors including medical expenses that can arise from recent hospitalization due to accidents and injuries; loss of job is also another cause resulting from layoff, termination or resignation; lack of financial management is also another ground and this can usually arise from extensive usage of credit cards; and lastly, fortuitous events like earthquakes and floods can be causes and theft can also be grounds of bankruptcy.

On the other hand, there are some companies that file for bankruptcy petition against the debtor in an effort to seize properties from the latter in order to get even a portion of the debt. Declaration for bankruptcy is a tedious process. Be prepared for legal proceedings. It should be noted that not all bankruptcy proceedings and petitions are being granted and approved by the courts. If the court can see a probable property that can be made as payment to the debts, then bankruptcy is still not the solution. Meanwhile Chapter 11 is the United States Bankruptcy Code which focuses more on the reorganization of businesses and organization when facing severe debt. Furthermore it promotes the security and protection of the organizations and businesses in debt from creditors. When in debts, you should be able to make good financial management in your cash inflows to slowly pay debts. Furthermore it is your reputation that is put in line so do not mar it.

What Is the Cost of Bankruptcy? How to Figure Out the Real Cost of Bankruptcy

In some financial situations, the best option may be bankruptcy. Even when there is no other way out of the situation, bankruptcy may cost more than you think.

However, this method of resolving a bad financial situation should be used with caution as the price to pay for bankruptcy may be far greater than you realize.

Here are some tips for understanding the real cost of bankruptcy.

Chapter 7

Chapter 7 Bankruptcy is designed for individuals or couples wanting a fresh start. It is the most difficult to qualify for, but the fastest way to discharge all debt.

Filing a Chapter 7 petition involves a means test. This test is used by the court to determine if the person would have the ability to repay the debt that is owed back in the set amount of time by using one of the alternative chapters.

If the means test is not passed, bankruptcy is filed. The whole process lasts three to four months in duration. However, you may not be granted continued possession of your home and your car as these may be used for liquidation purposes.

Chapter 11

This form of bankruptcy is suitable only for businesses. It is one of the hardest forms of bankruptcy to file and one of the most expensive.

The petitioner will need to provide two different types of documentation to the court.

First, they have to come up with a plan for repayment to the creditors to be completed in a specified amount of time. Secondly, they will have to prove that there will be the means to do so. The creditors have the option of denying the plan.

Chapter 13

For an individual, this is the most common type of bankruptcy. Generally, it is also the swiftest. Also, assets are not forcibly lost through liquidation such as in Chapter 7.

The individual will submit a plan with the petition to make timely payments over the next three to five years. Generally, payments of 10 cents on every dollar outstanding are accepted. In other instances, it may be as high as 50 cents to the dollar owed.

Bankruptcy Versus Credit Counseling: Which Is Better?

You have tons of debt and it is overwhelming your finances and even yourself. How do you address this issue? There are two options that you can choose. First, you can ask for guidance from a certified credit counselor and you can also go to a bankruptcy attorney. Sometimes, when push comes to shove, people with incredible debts go to bankruptcy lawyers. There are a number of reasons for choosing such an option.

The first option, the credit counselor, is designed to pay off the credit card debts within a time frame of 5 years. This method veers away people from impending bankruptcy. A lawyer on bankruptcy can offer individuals a wider scope of options in order to address their financial woes. Also, one reason why the first option is not always the best option is that it does not lead to the expected results even if you hope for the best. Sometimes, we have to embrace the worst.

Statistics from previous years prove the point made on getting a credit counselor. Of the millions who have tried to get counseling, only 1/3 of the population was able to handle their financial situation securely. The other 1/3 of the population, sadly are too far off from their debts. Some of these people have very little income to make the plan work and some of them already have issues such as gambling, alcoholism as well as drug addiction. The last third of the population were enrolled to such plans but they dropped out right after.

Let's be honest, not all people can survive with the repayment plans offered by credit counselors. Sometimes, repayment just shows you how big your debt is and how small your salary is. When that happens, it can be too difficult to fight bankruptcy. For some, embracing chapter 13 might be the most effective way to address the situation. With Chapter 13, people can be protected from creditors and at the same time, establish a five year repayment plan. After that period, all debts would have been erased already.

Of course, that does not mean everybody who files for bankruptcy can clear their credit back to square one. There is also high failure rate with this option. One of the best ways to address your credit issues is to do it on your own as much as you can. If you can minimize all expenditures and track all debts and bills, this can be a good start for you. Also, do not be afraid to take on all options. If one does not work, head to the next.

Declaring Bankruptcy - Is It Right For You?

Bankruptcy, it is a hard decision to make. Where do you get good advice on bankruptcy, where can you get honest help with bankruptcy questions?

Besides dealing with the stress of finances, people often have the additional burden of emotional stress. This can cloud your ability to make the right decisions, for these reasons you need to understand how the process works.

Bankruptcy Facts

When it comes to personal bankruptcy there are two choices: Chapter 7 and Chapter 13.

Chapter 7 - This type of bankruptcy is called a "Total Discharge". Each state has a threshold requirement which uses income and household size. If you do qualify for chapter 7 you are allowed to keep a limited amount of assets, the rest will be surrendered to the court. It's not as bad as it sounds, you can keep cars (up to a certain value) household possessions ( TV, furniture, clothes), small amount of savings and retirement funds.

The point is you can't keep boats, diamond rings, expensive collectibles, things like that.

Once you declare bankruptcy all collections stop and you are now under the courts protection. From the day your papers are filed it takes a few months to get a court date. At this hearing your file is reviewed, you will be asked a few questions and if all is in order your case is forwarded to the judge. In a month or so your file goes before the judge. Since your case was reviewed earlier the judge will do a quick overview and then approve it. As of that day all your debt is discharged.

Chapter 13 - This type of bankruptcy is known as a Reorganization. If you don't qualify for chapter 7 and you are having trouble paying your bills, this type of bankruptcy is for you. You might have enough money to pay your house, but with all the other debt you are in financial trouble, chapter 13 can help.

Basically, you can keep your house and the court decides how much you will pay beyond your mortgage payment. You will pay the court that set amount each month and the court disburses it to your lenders. The plan generally goes for 5 years. At the end of 5 years all the outstanding debt is discharged.

Now That You Know the Basics, is Bankruptcy Right For You?

The first thing is you can get advice on bankruptcy for free. A bankruptcy lawyer offers free consultations so you can get help with bankruptcy at no cost.

The second thing is, how deep in debt are you? If you are falling behind in payments you are subject to late fees and penalties. This could lead to collections and judgments. The only way to get legal protection from the courts at this stage is through declaring bankruptcy.

Since each state has different guidelines for the types of bankruptcy you can file, it is advisable to at least take advantage of the free consultations. Of course you know a bankruptcy will be on your credit report for 10 years, but remember - bankruptcy is a financial tool, a fresh start could be just right for you.

Can I Go Bankrupt in the UK If I Have Already Moved Abroad?

If you built up debt while you were living in the UK but have now moved to a different country, we consider whether you can still declare yourself bankrupt in the UK.

Generally speaking it is possible for you to declare yourself bankrupt in the UK if you have unsecured debts which you built up her but you have subsequently moved to a different country.

However, you need to be aware that there are certain rules surrounding the process which are different depending on where you are living now and how long you have lived there.

Living in the EU

If you have moved from the UK to a different European Union country the rules on whether or not you are allowed to declare yourself bankrupt in England have recently changed in an attempt to stop bankruptcy tourism.

As a result of this change, you can only declare yourself bankrupt in England if you have been out of the country for less than three months.

After three months have passed, if you wish to declare bankruptcy you will need to use the process available in the county where you are living in accordance to local law.

In order to be eligible to declare bankruptcy in England again, you would have to move back and live in England for the greater part of 6 months unless you have maintained a home in England while you have been away.

Living outside the EU

If you have moved to a county outside the European Union, the rules about declaring bankruptcy in England are different.

You can petition for your bankruptcy in England as long as you have not been living outside the county for more than 3 years.

If you have already been living abroad for more than three years you will lose the opportunity to declare yourself bankrupt under English law. You will therefore have to use the local insolvency law in the country you are residing.

As such, if you are now living outside the EU, you must make the decision to declare yourself bankrupt in England within 3 years unless you maintain a permanent home in England while you are away.

How bankruptcy works from abroad

If you are eligible to petition for bankruptcy in England, then the process you use will differ depending on where you are living.

If you are living in another EU country, you will normally have to return to the country court which is local where you used to live in England. This may be the High Court if you lived in London.

You need to complete an appropriate bankruptcy application form and submit this to the court in person together with your court fees.

If you are living outside the EU, then you will need to submit your petition for bankruptcy in the High Court in London. If possible it is always best to travel back to the UK and go to the court in person. You could perhaps combine this with a visit to family or friends.

I you cannot travel back to the UK, it is possible to give someone the authority to submit your bankruptcy petition on your behalf. However if you use a company to help you with this, you need to expect to pay a significant fee over and above the standard court fee.

How will bankruptcy affect you while living abroad?

Generally speaking, if you declare yourself bankrupt in England while living overseas the effects of the bankruptcy are usually confined to the UK.

For example, the bankruptcy will be recorded on your UK credit record for six years from the start date of the bankruptcy. However this will not be likely to affect your credit rating ad applications for new credit in the country you are now living.

Nevertheless, you will need to tell the UK court about your personal income where you are now living and if you can afford to make monthly payments towards your creditors in the UK, you will be asked to do so.

If you refuse, the length of your bankruptcy could be extended with a BRO for up to 15 years

Likewise, if you have assets in your new country of residence, for example, if you own a property overseas, you have a duty to inform the UK official receiver (OR) of this.

However, the OR will only be interested in the property if there is considerable equity in it as the cost of trying to force its sale for the benefit of your creditors in the UK is likely to be very high.

Best to declare bankruptcy before you leave

I you have built up personal debts while living in the UK but you are now planning to move to a different country, you should take advice about bankruptcy before you leave.

If you are intending to move to another country in the EU, it will almost certainly be best to declare yourself bankrupt before you leave. If you don't do this, you may lose the opportunity to declare bankrupt at all.

If you are moving outside the EU you have longer to make the decision to declare yourself bankrupt.

However to avoid the cost of either travelling back to the UK or paying someone to submit the application on your behalf, again it is best to go through the process while you are still in the UK.

Bankruptcy Loans - It's Time to Get Back on Your Feet

Bankruptcy loans are a great way for someone to fix their credit and put it back in good standing. Bankruptcy can be a bitter pill to swallow but sometimes there are no other options left. These loans can give you back the opportunity to get a loan or a mortgage. As long as your creditors have been paid then you may very well be able to apply for a mortgage after bankruptcy. In this article we will discuss bankruptcy loans.

The little things count

When it comes to qualifying for a bankruptcy loan the little things do actually count. The little things are secured credit cards. Secured credit cards are credit cards in which you put a deposit down and the card equals that deposit. So if I wanted a secured credit card that had a limit of $1000 then I would need to deposit $1000. Regularly using the card and re-depositing the amount that you have used monthly will in fact build up your credit rating at a very quick pace. If you do this it will get you one step closer to qualifying for a mortgage after bankruptcy or a loan and it can be done relatively quickly and easily.

Open up some bank accounts

If you don't have both a checking account and a savings account then go and get them. Having these accounts and regularly using them will show lenders that you are good with your money and therefore are responsible enough and capable enough for bankruptcy loans. It also shows that you are preparing for your future and want to save money for the long road ahead. Make sure to never overdraw your accounts and make regular deposits to your savings account even if it is just $100 a month.

Find a co-signer

A co-signer will greatly improve your chances for bankruptcy loans especially if they have great credit. In the event of you not paying your loan back the lender will then go after the co-signer so be sure that they are aware of this. It can be an awkward thing to ask a friend so maybe a family member will be able to help you out.

Bankruptcy loans can be the right step in the right direction so that you can get a good credit rating again. A good credit is always needed in life so that you can buy all of the things that families need such as houses and cars.

How Will My Boyfriends Bankruptcy And Credit Affect My Credit?

In this report you will discover how your boyfriend's bankruptcy and credit will or will not affect your credit.

The answer to this really depends on your financial relationship. Here are a few situations that will help to further explain how your boyfriend's bankruptcy can credit may or may not affect your credit.

Future Marriage

Finances would definitely be a topic of discussion before getting married if there has been a bankruptcy. How long has it been? Has he begun to reestablish his credit? Or will this continue to be an issue throughout your marriage? Learn the circumstances behind his bankruptcy.

Bankruptcies are tracked through social security numbers. If you are planning on getting married, the good news is that credit ratings are not transferable from one social security number to another. Therefore your credit will not be affected once you walk down the aisle. Just as his poor credit rating will not hurt you, your positive credit rating cannot help him either.

Cosigned Contracts

If you and your boyfriend are partners on any contract such as an automobile or cell phone and he defaults on these with the bankruptcy, you could be affected. In this case, each person that went into this type of financial agreement is responsible for the borrowed money. To avoid this situation damaging your credit, do not allow him to discharge any of these types of loans or contracts. Be sure to continue to pay these bills on time. If this is not done, then yes, it will affect your credit negatively.

Mortgage Loan

If there is a mortgage in both names and you are in arrears on the loan, this could impact your credit in a negative way. If the amount in arrears was included in the bankruptcy, this will show on your credit rating. If there were no arrears and a plan is made with the lender to continue making the mortgage payments as normal, you will want to be sure to adhere to that agreement to avoid damaging your credit.

Purchases in the Future

If you plan to purchase a home in the future, your boyfriend's bankruptcy and credit will affect you. Lenders typically combine the two credit scores and take an average of these, creating a combined credit score. This will result in a higher interest rate and create more difficulty when trying to obtain a loan for a house. Any bankruptcy is a red flag to mortgage companies.

Reestablishing Credit

A bankruptcy will remain on your boyfriend's credit report for 10 years. As soon as possible, he will want to get a secured credit card, make his payments on time to begin to reestablish his credit. He needs to regain the trust of lenders, by slowly building up his credit score.

New Bankruptcy Laws - How New Laws Make Debt Settlement Programs A Better Option

New bankruptcy laws that were recently passed have made Ch. 7 bankruptcy much more difficult to qualify for and made debt settlement programs a more financially attractive decision. Consumers on the verge of bankruptcy should at least consider negotiating a settlement deal before filing bankruptcy. Thanks to new federal laws passed on October 27 2010, you won't have to pay a penny until your debt balances settle for at least 60% of the balance. This makes the debt settlement process much more legitimate.

The new bankruptcy laws were passed in 2005 but we are now just now starting to see the full effects. Consumers are having a much more difficult time filing and getting accepted for Ch. 7 bankruptcy. Ch. 7 bankruptcy is considered the "clean slate" type of bankruptcy where the majority of your debt is completely written off and forgiven. This used to be a financially attractive decision for many consumers and small business but it is much more difficult to qualify for now and the process is just a complete headache.

You are more likely to qualify for Ch.13. This is basically a reorganizing of your debts and you typically will still pay back most of your debt just over an extended period of time. This is similar to getting a settlement deal one major difference. The effect on your credit score. Bankruptcy will hurt your credit score for at least 7 years while many people can recover from debt settlement in 3 years or so. If you have at least $10,000 in unsecured debt then it would be a much better decision, especially with these new federal laws in place, to consider negotiating a debt settlement rather than filing for bankruptcy.

Maintaining A Quality Financial Standing After Bankruptcy And Reclaiming Self-Esteem

Some people, in recent years, have yielded to upsetting life circumstances such as losing their job or going through extended periods of unemployment. These scenarios may have given an unfavorable blow to their credit rating. Your credit rating is a judgment placed upon you and the outward financial manifestation of your lifestyle. In terms of your bank or investment accounts, this gives an impression of your credit strength, and how likely you will be to repay your debts. One way to address the peril of unfavorable credit scores and gain compensation to help in such fiscal struggles is to file for bankruptcy. Bankruptcy proceedings often assist individuals or companies in adequately dealing with their fiscal problems, as said individuals or companies can enlist the aid of legal experts. Attorneys and lawyers will help get questionable money management under control.

Adept bankruptcy attorneys are at your disposal. They assist you by acknowledging the concerns that you might have about the various methods of insolvency filing. Additionally, an attorney's assistance helps you to concentrate your efforts on fixing your stressful financial and emotional situation, as they try to get your credit back in order. Qualified and dedicated lawyers take their line of work very seriously and understand the importance of helping people re-assert control over their lives.

Do research before filing for bankruptcy, because it will affect your credit score for an entire decade. There are benefits to filing for bankruptcy, despite the pitfalls. You can actually raise long term credit ratings by filing for bankruptcy, with the appropriate legal knowledge and maneuvering.

Some liabilities are rectified, as bankruptcy offsets your debt to earnings ratio and deters your credit score from further worsening. This can make it more difficult to recover in some cases. The chances of bankruptcy accruing favorable results are fair if you, as the debtor, practice good accountability in dealing with your accounts, daily cost of living expenses, and continual charges.

If you do conclude that bankruptcy is the best course of action for you in your predicament, then consult a local bankruptcy attorney. Bankruptcy just may be the answer, but it is not for everyone. For those who are struggling with overwhelming debt while managing to stay somewhat above water, choosing bankruptcy is an option that may make all the difference, and offer you the support you need to get the financial freedom you have been looking for. For your predicament, speak with an attorney to go over all of your alternatives and get the best solution.

What Will You Do When Repo Men Come For You?

The worst part of a foreclosure is when the repo men come knocking.

It is a matter of shame, anger, sadness and most of all, despair. However, there is a right way and a wrong way to deal with repo men. Forget what you see on television, as the cases they show there are the most extreme (or fake) ones. In fact, seven out of 10 repossessions are concluded in a relatively civil manner.

As a matter of best practice, read your mortgage contract and understand what your lender can and cannot do in cases that you default on your payments. This can help you prepare for the worst, should it come to pass.

So what should you do when the repo men come knocking on your door? Well, first off you have to be civil and polite, even though your emotions may be boiling inside you. Being a repo man is not easy, and these people get abused by people on the worst days of their lives. The least you could do is to interact with them in a professional manner.

The first thing you should expect is to be shown documentation regarding their actions. Ideally, the repo men will be polite and will state their intentions and show documentation without prompting. As a matter of personal security, you have the right to ask for documentation supporting their actions as authorized by your lender. If they cannot produce such documentation, then you have the right to refuse entry.

What you should not do is to be hostile toward the repo men. A certain level of animosity is expected, but you should never threaten or take physical action against the repo men. Not only do you worsen your position in your creditor-debtor relationship, you also set yourself up for personal charges for assault and battery. Being charged with a crime is not going to help you any, so stay in control.

Another thing you should avoid is to damage the property as an act of lashing out against the repossession. Not only is it very rude and improper, it can also mean additional trouble with your creditor. Remember that under the terms of a mortgage, the lender technically owns the property. The lender might file charges of property damage or attach damage fees to an already grave case.

Once you have ascertained that the repo men are the genuine article and that they are here on sanctioned business, then it is in your best interests to allow them to perform their duties. Secure your small valuables and personal documents and avoid getting in their way.

Sometimes the repo men will ask you for payments as an alternative to direct action. This should be authorized by the lending institution, and will comprise arrears plus costs. Do not attempt to pay them as an incentive to leave you alone for a while. Hopefully, the repo men will come sometime during your lender's operating hours so you can call them up to confirm authorization for this action. If you do hand them money to pay for your debt, make sure to call your lender and inform them.

As always, the best way to deal with repo men is to not deal with them at all. Cut your expenditures and direct whatever you can spare into paying for your debts, so you won't have to worry about what to do when the repo men come for you.

Foreclosures, Repossessions and Bankruptcy

If you are behind on your mortgage or car payment you have probably been reviewing your options for debt relief. There aren't many options available to help you get out from under your debts and allow you to protect your home or car from being taken by creditors. However, bankruptcy protection can, in most cases, stop a foreclosure or repossession while you get caught up on your debts.

When you file for bankruptcy, an automatic stay is issued prohibiting creditors from collecting on debts. It also will prevent you mortgage lender from pursuing a foreclosure or car loan creditor from seizing your car through repossession. As you go through the bankruptcy process, you can rest assured knowing that the majority of your property and assets will be protected from the hands of creditors. This protection results from the federal, or state-level, bankruptcy exemption laws that outline how much of your property is protected during bankruptcy.

Keeping Your Home

For most people, your home is your biggest asset. Losing your home to foreclosure can cause many more problems with your finances and credit than you would think. If you are experiencing financial troubles that are preventing you from making your mortgage payments, you may be able to keep your home through the federal bankruptcy exemption laws. A home valued up to $125,000 will be protected from foreclosure during the bankruptcy process. Several states allow for a home of an unlimited value to be protected. Contact a qualified bankruptcy attorney to find out the exemptions provided by your state.

If you file Chapter 13, you will be able to keep your house and stop a foreclosure regardless of the exemption laws in your state. As long as you are making payments through a payment plan that is approved by your mortgage lender, your home will be safe. The best way to keep your property and protect your credit is to repay your debts. Many lenders are very forgiving when it comes to negotiating repayment plans with homeowners.

Keeping Your Car

When trying to protect your car from repossession, there are a few things to consider. First, try contacting your car loan lender as soon as you begin to miss payments. This should be done before you file for bankruptcy. Many times creditors are willing to negotiate a loan modification that can reduce your monthly payments. The lender loses considerable amounts of money through repossession and they would rather modify the terms of your loan than risk losing more through repossession. However, time is crucial when attempting to negotiate a loan modification with your lender, don't wait until it's too late.

Second, federal bankruptcy exemption laws allow for the protection of one vehicle up to $3,450. This may not seem like much, so review the exemptions available in your state. Some states will allow for the protection of one vehicle, of unlimited value, per member of the household.

Third, if your state exemption laws do not offer enough protection of your vehicle consider filing for Chapter 13 bankruptcy rather than Chapter 7. In Chapter 13, you will be able to negotiate a debt repayment plan with your car loan creditor. This repayment plan will allow you to space out your debt repayments over the span of several years. As long as you are under an approved repayment plan and making consistent payments, you will be able to keep your car.

Saving Your Home With Georgia Bankruptcy

If you lack the income to pay on your home, you may think you are out of options. If you have some income, but have fallen behind in payments, it's understandable to be worried. If you recently lost your job and suffered through months where you could not pay your bills, you may be curious about your options. While this guide promises no miracles, there is always hope, and you are not alone in this struggle. You can get help quickly if you take action.

Georgia Homestead Exemption

If you cannot continue making mortgage payments, it's time to make some decisions. First, you do have a $10,000 exemption in Georgia on your home. However, if you fall behind in debts, and have $10,000 or more of equity in your home, by filing bankruptcy you endanger having your home sold to pay back creditors. On the other hand, if you file correctly, you stand to save your home. Remember this is a fine line.

Georgia Foreclosure

Can they sell your home? Technically, if you stop making mortgage payments you can lose your home. And if you wait too long - if you wait until the foreclosure process has begun - even a bankruptcy can only delay it a few months. Foreclosures are very common in Georgia, with in 1 in 250 homes being lost every month, so don't wait too long to take advantage of your options.

Chapter 7 in Georgia

Chapter 7 bankruptcy in Georgia means you are canceling debts you cannot afford. This is a liquidation process, technically, where your assets are sold to pay off creditors but where the majority of your debts, including secured and unsecured, can be discharged. In Georgia, you must make less than the median income, as follows. For 1 person, you can make up $38,748; for a family of 2, the income level is $51,184; for a family of 3, you can make up to $55,767; for a family of 4, you can earn up to $68,122. If you have a larger family, add $7,500 for each family member.

If you're eligible, you do not have to make the home part of your bankruptcy. If you want to be free of the home, to let the foreclosure happen, you can discharge the debt, buy yourself a few months to find a new residence, and be free of the mortgage. If you want to keep the home, and can pay on it, you can pay the lender outside the bankruptcy. Chapter 13 is more effective if you want to keep your home.

Chapter 13 in Georgia

Chapter 13 bankruptcy, when used correctly, can save your Georgia home. The requirements are much less stiff, so unless you owe hundreds of thousands to millions of dollars, you should be eligible to file. The only point of emphasis is you must have enough of an income to pay into the repayment plan. You will be paying on debts, not eliminating them. If you file before the foreclosure process starts, the judge will put an automatic stay stopping all collections and any foreclosure before it begins. You can then make manageable payments and keep the home.

The Best Option?

Chapter 13 bankruptcy is usually better for protecting your home. But remember you have to file before the foreclosure process begins. If you have a lot of unsecured debts you want to be free of, Chapter 7 may be smart, if you can pay on your home outside the bankruptcy. This is dangerous territory, so consult with an experienced Georgia bankruptcy lawyer.

Get Legal Help

Do not make decisions based on this article; it's just meant to help you with the basics. You need to consult with someone who can best explain your options, and that's an experienced lawyer.

Credit Debt Bankruptcy - The Top 2 Debt Relief Options To Avoid Filing For Bankruptcy

There are more consumers on the verge of credit debt bankruptcy than ever before. Coming off one of the worst economic recessions since the Great Depression many Americans are still experiencing financial hardship. Even though bankruptcy might feel like the only option for some people it is important that you understand your debt relief options.

The first method to avoid credit debt bankruptcy is credit counseling. Credit counseling programs are intended for consumers with several high interest credit account lines. Instead of paying back all these high interest accounts separately, credit counseling programs negotiate and lower the interest rates on these accounts, combines all the balances, and comes up with an affordable payment to pay back the entire amount generally over a period of 4-9 years. This payment will typically be the sum of all your minimum payments.

It's very important that you are able to make this payment on time throughout the course of the program because credit counseling programs are notoriously strict about clients missing payments and will typically kick you out after just a few missed payments. But, if you are able to comfortably meet your minimum monthly payments then credit counseling can be a great way to pay back all your debt at a lower interest rate saving you thousands of dollars over the years.

If you are struggling to meet your monthly minimum payments then debt settlement can be a good option. Debt settlement programs negotiate a reduction in the overall balance and legitimate programs can typically get 40-60% of your unsecured debt removed. Creditors agree to these debt settlement deals because they know if you file bankruptcy they will receive nothing. Therefore if they believe you are a legitimate candidate for bankruptcy they are more than willing to negotiate and settle for a lower amount. 50% of their money is better than nothing.

Chapter 7 Bankruptcy: Get to Know the Basic Details

If you are tired of being in debt and getting harassing calls from creditors, it may be time to put a stop to it by filing chapter 7 bankruptcy. Before you file, you should make sure that this is the best route for you, as it can have lasting effects. Learn the basics about this pathway to starting over financially.

This route is known as liquidation, as you will be selling much of your property off in order to pay at least some money to bill collectors. You can expect it to take about six months, and the entire process needs to be approved by various people involved before you can complete it. Fortunately, you will likely only need to visit the court one time during the procedure, though you can expect to meet with your lawyer more often than that to get the details worked out.

You will need to sell many of your assets so that you can start paying off people you owe. In many cases, you will be allowed to keep your house, a car, any equipment you need for your job, clothes, and most furnishings in your home. However, anything extra that you do not appear to need will be sold so that you have extra money to offer your creditors. In chapter 7 bankruptcy, you will be expected to pay back at least a portion of your debts, as in most cases, you will not be forced to pay the full amount. However, the creditors must agree to the amount you plan to pay, as this is considered a compromise.

One of the best parts of chapter 7 bankruptcy is the automatic stay, in which creditors are prohibited from calling you in an attempt to collect their money. Many people get several phone calls per day, all from creditors filling up their answering machines with threatening or hostile messages if they do not pay past bills. Your lawyer will put a stop to those calls while you work out the chapter 7 bankruptcy.

Clearly, this kind of move is a good alternative to doing nothing and allowing bill collectors to harass you for years to come. It is a form of starting over so that you are no longer in debt. If you want to put a stop to harassing phone calls and wage garnishments, consider meeting with a lawyer to talk about going this route.

Chapter 7 Bankruptcy Filing Gets You Out of Debt Troubles

Bankruptcy is not debtor's prison, you can survive and you can come out of it better. It can be the light at the end of the tunnel. If you just can't deal with the financial stress, and your budget just won't stretch, then don't let fear, shame, or pride stand in your way.

It's important to remember that it was created as a way for people to find relief from creditor problems that are overwhelming them. It allows you to start over from scratch without burdensome debt, and with some assets to minimize the risk of your being bankrupt again. Erasing debts through a bankruptcy can be a very humbling experience but when you get through it you will have the weight of the world lifted off of you, giving you the fresh start you desperately need.

Chapter 7 bankruptcy filing allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will be able to get rid of old income tax debts and property tax debts.

In Chapter 7 bankruptcy the majority of your assets are liquidated to satisfy part or all of the debts you owe. There are exemptions to the assets that can be seized, but these exemptions are extremely limited; therefore, Chapter 7 is the preferred type of personal bankruptcy when you own no assets of immense value, such as a home, that you cannot afford to lose. Since it is the closest thing to a fresh start, however, many people choose it as a viable option when their debt load becomes too heavy to carry.

The Court's enforcement of the education requirements of the new bankruptcy law are starting to affect many unwary and procrastinating debtors. Most debtors are diligent in completing the pre-filing education course. Many of these same debtors, however, are forgetting that they need a post bankruptcy filing course certificate after they file bankruptcy in order to have their debts discharged.

This is all for a reason and it is that your bankruptcy filing will remain on your credit records for 10 years. During this time, banks and lenders will see this filing every time you apply for a personal, student, car or home loan. Some banks will choose not to lend you money. Others will charge you higher interest rates. You might also struggle to obtain new credit cards. In general, having a personal bankruptcy on your record makes borrowing money, and using credit, a hassle. Therefore the above mentioned course could get the debtors guidance for how to deal with the post filing financial issues.

Credit Card Bankruptcy - How To Legally Eliminate Credit Card Debt Without Filing Bankruptcy

Are you on the verge of credit card bankruptcy? Maybe all your cards are maxed out and you can't afford to pay them back. Whatever the case may be, you should always make bankruptcy your last option for debt relief. There are much better options than filing bankruptcy and new federal debt relief laws makes one of them, debt settlement, particularly attractive.

For consumers that are buried in credit card bills and are struggling to make their monthly payment there are really only 2 options. Credit card bankruptcy and debt settlement. Unless you are experiencing an extreme financial hardship and have no asset value then you probably won't qualify for Ch. 7 bankruptcy. Ch. 7 is the "clean slate" bankruptcy where almost all of your debt is eliminated. This used to be very popular in the past but new laws passed in 2005 make it very difficult to qualify for Ch. 7.

You are much more likely to qualify for Ch. 13 bankruptcy. This is where your debt is reorganized and you get a repayment plan to pay back the majority of the debts while a certain percentage is eliminated. Ch. 13 is similar to debt settlement with one major difference. Bankruptcy will effect your credit for at least 7 years while typically consumers can recover their credit score from a settlement within 3 years.

If you are over $10,000 in unsecured debt it would be wise to look into a debt settlement program. On October 27th 2010 new laws were passed by the FTC which make this a much better option. This new legislation bans debt relief programs from collecting upfront fees. Now consumers that enter into a debt settlement program will not have to pay a dime until their debts actually settle. If they don't perform you don't pay a dime.

Getting The Most Out Of Bankruptcy

If you are significantly in debt and lack the resources to pay your bills you are probably in the process of reviewing your debt relief options. Many honest people end up in over their heads with debt and need help to get them out. There are several options available to help you get out of debt and gain control over your finances. Before you get behind in your payments you can seek advice from a debt solutions company to help you create a budget to keep you on track. If you are only slightly behind in your payments you can negotiate a repayment system with your creditor. However, if you have fallen on tough times and no longer have the income needed to make your monthly payments, bankruptcy may be your best option to resolve your financial situation.

Protection Of Assets

Filing for bankruptcy is one way you can resolve your money problems while maintaining most of your assets. Many people fear losing their assets when they are behind in their payments and do not realize they can take action to protect these assets. In efforts to save these assets, some people have turned to selling or giving their possessions away to keep them safe from the hands of creditors. Although selling your assets may be allowed, and even beneficial, there are some things to consider about the sale of assets and the money received from the sale. The transfer of assets to family members before filing can be deemed fraudulent if you are not careful. Before you take that first step, get to know the rules in your state about "selling or transferring assets". In many cases there is no need to sell or give away your assets as each state has certain bankruptcy exemption laws that will specify which assets are safe from liquidation.

The Filing Process

If you have decided to proceed with filing for bankruptcy, make sure you have all of the necessary documentation. The courts will want to see information about your financial situation in order to determine how to proceed with your case. The first step is to file a petition with the courts. This document includes details about your finances such as:

List of your assets (all property, owned or borrowed) List of your debts (all lines of credit and loans) Bank account information (savings, credits, retirements, pension etc) Tax returns for the past 5 years

It is important that you are accurate and honest on your petition to get the maximum benefit from your filing. Withholding, concealing or providing inaccurate information can be considered fraudulent and may result in having your case dismissed. It is always a good idea to consult an experienced bankruptcy attorney to help guide you through the process. Your attorney can make sure all of your information is complete and accurate, as well as, file the papers on your behalf.

Once you file the petition you will be required to complete a debtor education course before your case can be completed. A reputable credit counseling agency will be able to offer these courses and provide you with numerous other helpful resources during the process. There are plenty of non-reputable credit counseling agencies that can result in scams and fraudulent practices; an agency that is registered with the U.S. Department of Trustees will be qualified and approved to provide these services.

After Your Debts Are Discharged

If you receive a discharge of your debt under Chapter 7, you will no longer be liable for these debts. You will be placed into a "current" status with any creditors, but it is likely that your credit has been damaged due to missed payments and delinquent account standings. However, you can begin repairing your credit right away. For debts discharged under a Chapter 13 plan, your credit will be less impacted as a result of you having repaid your debts over a period of time. Your credit report will reflect the bankruptcy, but creditors will be more lenient in providing you with credit than someone who was discharged under Chapter 7.

Regardless of which discharged you received, it is important that you follow the guidelines and tips set forth in the debtor education course to begin new financial habits that will help you succeed. Bankruptcy is a privilege and should not be abused. It is a tool to provide you with a fresh start towards regaining control over your finances.

Options For Struggling Businesses Filing For Bankruptcy

If your business is in financial trouble, struggling to make ends meet, how do you know what are the proper steps to take to correct it? Everyone's first thought is filing for bankruptcy. Are there any other options that a business could take to avoid Chapter 7 bankruptcy liquidation and be able to stay open repaying the creditors? There are a few alternatives to filing bankruptcy. First, there are debt consulting agencies which are especially equipped to help businesses. These financial consultants sometimes will offer a free evaluation of the finances to give the business a better picture of what is necessary to survive. This can be an important decision-making tool to see if bankruptcy is in the future of your business. At the very least, the consultant will give you an objective picture of your business.

If you decide to hire a consultant to help you get out of debt, sometimes the consultant might have to act in the same capacity as a bankruptcy trustee liquidating assets. The main difference between the two of these is bankruptcy will put a black eye on the credit of the business, where liquidating assets from a consultant will not adversely affect the credit rating. Many times by making the proper financial moves and selling property the consultant feels it is unnecessary to keep, will make the business leaner and more profitable allowing it to recover with a positive cash flow. With enough cash flow, vendors and creditors will be more likely to give larger amounts of credit that would help the business continue operations smoothly. Some businesses are too far gone to go about it this way and end up having to file bankruptcy anyway. With your business at stake, it's always best to consult with a bankruptcy attorney before deciding on which method of debt elimination you choose.

If the decision is made that the business needs to file for bankruptcy, there is a lot of work that needs to be accomplished. Even though you're filing for bankruptcy, the court now requires a pre-consumer credit counseling course and post financial management course. When filing for bankruptcy, under Chapter 11 or Chapter 13, your bankruptcy attorney will have to prepare a court-approved payment plan to the creditors. Although this seems like you're wasting valuable time keeping all the parties happy in the bankruptcy, all this is necessary. There is no magic bullet to the choices the business should make when considering and filing bankruptcy. A business owner should remember to choose a financial solution that pays the contracts of the vendors that helped the business along the way. Keeping a good relationship with the creditors will help the business have sufficient capital to continue operations. A business needs to be able to move quickly if an opportunity comes up to expand or increase the customer base. Volatility is expected in most businesses, the continuous drops and profit can signal a fatal disaster. It's important for business owners to have knowledge in all the forms of bankruptcy filing with the current fragile economic condition.

Getting IVA Debt Help Could Be the Solution You're Looking For

Getting proper IVA debt help can mean the difference between finding a fast debt relief solution and hitting rock bottom in complete and utter bankruptcy. If you find that your finances are rapidly plummeting towards bankruptcy, you cannot afford to wait any longer. The more time you waste, the larger the amount of money that you will ultimately have to pay back grows. Because of the accumulating interest rates, it's always better to take your debt matters head on. And the sooner the better.

Why would I need IVA debt help?

The help of a professional debt solution firm can offer you a formal IVA proposal that put an end to all of your debt related worries. Individual Voluntary Agreements can facilitate a formal arrangement that could see you reduce your total debt amount by as much as 75%, and pay off the rest within a long term payment plan with much more affordable interest rates. Also, during a legally binding IVA agreement, you manage to shelter valuable assets such as your home and car from bailiffs and creditors.

IVA's usually last for 60 months, in which you are required to pay as much as your finances can support outside the costs of a decent living. After those 60 months, you are declared free, no matter the amount of money that was paid back.

How does IVA debt help work?

While at first it may seem that these terms are far too favourable for a creditor to willfully agree to them in a legal arrangement, you have to consider that an IVA is a good solution for all parties involved, as it allows you to stay clear of bankruptcy and guarantees that your creditors get paid (a reduced amount, albeit) something wouldn't have happened for sure within the debtors bankruptcy.

If you would like to learn more about IVA debt help or maybe better understand about other available options, it is recommended that you do your own research and draw your won conclusions. If you're looking for a good place to start, you can try this IVA UK site.

IVA Specialists Can Help You Get Your Life Back Together

IVA specialists are the only individuals who are capable of successfully handling an Individual Voluntary Agreement plan. Leaving aside the fact that their expertise and knowledge is more than needed to manage the legal and financial proceedings that are involved, the presence of a trained and licensed legal expert is mandatory, as IVA's are a formally legal binding agreement between you and your creditors.

What can IVA specialists do for me?

With the help of an Individual Voluntary Agreement, IVA experts can reduce the total amount of debt you have accumulated by 75%. While you would think that no creditor in his right mind would ever think about legally signing himself into that, through careful negotiation, such an agreement can be reached between you and your creditors. Having an IVA done is better for everyone, as you are able to avoid bankruptcy while your creditors are still being paid (albeit a smaller amount) - something that wouldn't have necessarily would have happened with your finances collapsing under the weight of bankruptcy.

IVA Specialists know more than finances

If you feel that your personal finances have stood up to about what they can hold, it is perhaps time that you searched for a better way of dealing with your debt than simply giving into bankruptcy. Licensed IVA specialists deal with all kinds of bad financial problems everyday and know very well what personal debt can mean for your personal life. These are trained professionals that make a living out of helping people such as yourself get out of their debt everyday, so you shouldn't have to worry about being judged or anything of the like.

While Individual Voluntary Arrangements are probably your best bet in the ongoing struggle with bad debt, it is recommended that you do your own research and draw your own conclusions out of these matters. Before making any decisions, make you completely understand what the process involves and that you've taken a look into some of your other options. If you're looking for a good place to lean more about bankruptcy and IVA, you can start with this IVA UK website.