When To File For Bankruptcy

Nobody wants to make the decision of when to file for
bankruptcy, but at some point it may come up. Bankruptcy
has a bad effect on your credit amongst other
ramifications.


Filing bankruptcy should only be a last resort when all
other options have failed you. But when should you consider
filing for bankruptcy?

You find yourself constantly borrowing from one source of
credit to pay off another. You have begun taking cash
advances greater than $500 to pay for living expenses.


You borrow to meet regular expenses like food and utility
bills. You have stopped answering your phone because the
only calls you receive now are from creditors.


Creditors are threatening to sue you, or a suite has
already been started against you. These are signs that you
are indeed in some serious trouble. These are signs that
you may want to consider filing for bankruptcy.


Then it comes to the decision of what sort of bankruptcy
you need to file for. The most common are chapter 7 and
chapter 13. Chapter 7 has the advantage is wiping the slate
clean and setting you on a fresh start immediately. Chapter
13, you will be making payments for three to five years.


But, as stated before, you should only consider filing for
bankruptcy when you have exhausted all other avenues. There
are many various alternatives out there to be considered,
but if none are practical for your situation, then speak
with a professional bankruptcy lawyer to learn what your
choices are.

What Is The Bankruptcy Means Test?

Some people are afraid of filing for bankruptcy because of the way many of the laws have changed the processes for filing for bankruptcy, unfortunately they do not really know what they can expect from filing for bankruptcy anymore. What you should know about the affects of some of these new bankruptcy laws is that mostly it just will mean that the actual processes are more time consuming and can be much more difficult than before. As if it were not difficult enough already I know, but laws change and we have to abide by those laws. It can be frustrating when thinking about it but it really may not be as bad as you might have thought.



With the most recent of the new bankruptcy laws, most people are quite scared of this horrid means test. The new means test is only a way for them to determine which type of bankruptcy the debtor should be attempting to file for. The test requires you the debtor, to be matched up against the median state income of the state in which you will be filing for bankruptcy in. The debtors who are in fact go over this median state income would have a more difficult time in filing for a chapter 7 bankruptcy, which would put the debtor not having any other choice but to possibly have to file for chapter 13, which means that the debts have to be paid back in monthly installments as the courts see fit. Usually people will find that they are under the state median income and in this case this new law really does not affect them in any way at all.



If you are considering the possibilities of filing for bankruptcy, do not let these new laws change your mind just because you are afraid. What you should do is simple, speak with a bankruptcy attorney and he/she will be able to give you advice on the regulations and laws of your state and if you may be in any ways affected by any of these new laws when thinking of filing for bankruptcy. This law was not put into affect in order to prevent you from being able to file for bankruptcy like some people may think, it is just a little something they are trying to do to prevent bankruptcy abuse from happening.



Filing for bankruptcy is not your only option as most of you already know. Consider all of your other options before making any quick decisions on filing for bankruptcy. Some may choose to get assistance by going to a credit counselor for helpful advice on reorganizing their financial status. Others may just choose to consolidate all of their debts into one monthly payment. It does not matter how you choose to better your current financial standing, as long as you are taking the initiative in correcting these problems that are keeping you entirely too stressed out and causing you too much unnecessary mental anguish.

Types of Bankruptcy

Bankruptcy is a procedure that is designed to relieve debt

to consumers who have fallen on hard financial times and

cannot afford to pay their existing debts.



While there are many types of bankruptcy out there, the

most commonplace are chapter 7 bankruptcies and chapter 13

bankruptcies of the bankruptcy code.



Chapter 7 is the most common for the individual. It is the

complete erasing of qualifying debt. The debtor is then

released from all repayment obligations. But chapter 7

bankruptcies are not to be taken lightly.



While giving you an immediate fresh start in repairing your

finances, it remains on your credit report for 10 years.

You will be looked at as a high credit risk and financially

irresponsible.



Chapter 13 is less harmful to your credit. Though there are

still marks against you, since you will be working to repay

your debts on a payment plan, you do not look like you are

financially irresponsible, though you are still considered

a slight credit risk. Also, your qualifying assets will not

be sold with the chapter 13 bankruptcy like they would in

the chapter 7.



In 2005 an act passed legislation that now makes it more

difficult for individuals to receive a chapter 7

bankruptcies. There are now terms to be followed such as

pre-filing credit counseling and post-filing financial

education.



So when considering your file for bankruptcy, it is

important to weigh the sides between chapter 7 and chapter

13. Which one will do you more harm than good when it comes

to solving your financial problems?

Tips To Avoid Bankruptcy

When individuals or businesses cannot meet with their

financial obligations, many make the assumption that the

only solution is bankruptcy. That is not always the case

though.



If the right steps are taken from the beginning, you can

keep yourself and your family out of financial trouble and

away from bankruptcy.



First off, start by educating your children. Many of us

growing up weren’t presented with the tools and knowledge

to establish and maintain good credit and keep away from

the scare of bankruptcy.



Parents need to be honest with their children about

finances. Teaching children that hard work, no matter the

job, has its rewards and if you spend on a budget, there

will never be a fear of bankruptcy.



Establishing a budget is also key in the prevention of

bankruptcy. You cannot spend what you don’t have. Many

people today have multiple credit cards and are in essence

spending money they don’t actually have, plus more for

interest.



So much so that people are paying off credit cards with

credit cards and causing a terrible chain reaction. Spend

what you can afford, after the bills are paid.



But you will want to make sure you have something socked

away for an emergency. Something along the lines of two

thousand dollars is a good base to have stored away for an

emergency.



It is another step to take to keep out of financial

trouble. Probably the most important thing though is to

watch your bank account. Don’t get yourself into a

situation where you are overdrawn.



The fact is more than a third of adults rely on their banks

overdraft to keep them going on a month-to-month basis.

Such actions are ones that lead individuals on a path to

The Blame Game With Bankruptcy

Having to file bankruptcy is something that many people are faced with considering at one point in their lives. It is not something that can always be avoided unfortunately. The first thing that many people end up doing is pointing their fingers at who may to blame for this dreadful event that is happening. The debtors are blaming the creditors and the creditors are blaming the debtors. The fact of the matter is that there are many different reasons as to why someone may have to consider filing for bankruptcy and it does not really matter who is to blame, it is here and it is happening.



With it being so easy for some people to obtain credit, now wonder they are ending up in such huge amounts of debts that they are now faced with having the inability to pay off. For instance, I was in college, 18 yrs old, no job, got a phone call one day, it was a credit card company offering me a $500 credit limit with their company, woohoo I said, I took it without even thinking twice, it was that easy! Or, some may say, people today just have no means of self control whatsoever! This is very true in many cases, no doubt about that. They say we get ourselves into these situations by adding on debts left and right, knowing in the back of our minds that we really are not sure of how we will ever have the ability to pay these debts off. It just sounds good at the moment.



Some people may unfortunately lose their current jobs, which may lead them to having to consider filing for bankruptcy. Many people with really good jobs, raking in lots of cash consistently, end up spending lots of cash consistently and when that cash flow is no longer available, the ability of paying these debts is no longer an option. Many of us are guilty of living way beyond our means, never considering what we may do if we ended up with no job and all of this debt. Most of the time when these kind of things happen the person is faced with having to file for bankruptcy in order to relieve them of these financial strains they have gotten themselves into, without thinking.



When someone has to file for bankruptcy, no matter what the reasons may be, you know how you got in that position and you are the only person that can decide what is best for trying to improve your current situation. You can blame the creditors or your boss or the guy next door but in the end it really does not matter as long as you are now working to improve your finances. Filing bankruptcy is not your only option so make sure you think long and hard before making a decision such as this. Get online and do some research on different types of ways to help you get yourself out of the situation you are currently in, there are several different things that you can do, you just have to find the right place to look for it to get started.

Student Loans And Bankruptcy

When someone files for bankruptcy they will have the ability in clearing up most of their debts, however, most student loans will have to be paid back, even after filing for bankruptcy. These types of loans are very difficult to get out of having to pay. In order to do so, you would have to be able to prove that your finances are not substantial enough to ever make a payment and since you have filed for bankruptcy, most of your debts are paid, so this would be very difficult when trying to prove such a thing. There is almost no way out of having to pay these off.



Once you go to court about filing for bankruptcy and everything is laid out on the table, the judge is truly the only person that can decide whether or not a student loan would have to be paid off or not. It would basically boil down to his own opinion of you and your current situation, he will just use his best judgment when determining this kind of decision. If you can prove beyond a shadow of a doubt that you have always made every possible attempt in trying to take care of these payments but just absolutely do not have the funds available in doing, so then he just might, MIGHT, let you off without having to pay off a student loan. It would not be something that I would hold my breath in happening though. Most of the times, the judge will decide that this is your responsibility and some form of payment arrangement will have to be made and you must continue paying this loan until it is paid in full or atleast half, if he chooses.



In most cases when you are having difficulties paying on your student loans you could just simply talk with your lender and in being honest with them, come up with some sort of solution in getting it paid when possible. They will work with you, if you do not avoid them and if you can let them know that you have all intentions on attempting to pay them off and are willing to work with them by any means necessary. They are much more courteous than many other bill collectors that are out there. Student loans are hard to get out of paying off when filing for bankruptcy but they are one of the easier ones in getting them to agree on a payment plan that would be best suitable for your available finances.



Many people may choose another path instead of filing for bankruptcy to get out of their student loans, which normally does not work anyway. Some may choose a loan consolidation. They will have many options available to you in planning a payment arrangement of some sort with them. You may be able to pay as little as fifty dollars a month, every single month until it is paid in full. This will normally take atleast ten years or so to completely pay off. Another kind of loan consolidation would take longer, possibly up to thirty years or more. Now, imagine the interest on that sort of loan agreement, I do not recommend choosing this extended arrangement, however, some people may not have a choice other than to do it this way. Either way it goes, they will work with you, if you work with them.

Some Things You May Not Know About Bankruptcy

More people that you can imagine have had to or will have to file bankruptcy unfortunately, at some time in their life if they can not get their finances in the proper order. The rich and the poor have had to file bankruptcy, it is not just someone with no financial stability having to file for bankruptcy. It happens for many different reasons and everyone should take the time out and do the proper research on filing bankruptcy and if you are needing advice on it that your research is not helping you with, ask a bankruptcy attorney to give you the information that you are wanting in gaining knowledge on the different types of bankruptcy and helping you decide which one might be better suited for your purposes.



Some of you may be able to find the information about filing bankruptcy in libraries, researching it on the internet, asking around or they even have self help books available for helping you solve financial instabilities you have gotten yourself into one way or another. You do not have to jump into filing bankruptcy just because you are at panic as to what to do with the amount of debts you owe the creditors. Take the time to look at all other possible options before deciding to file for bankruptcy, you may find another way to get your finances back on the right track.



Keep in mind that there are different laws that apply to filing bankruptcy, depending on which state you live in or even which country you live in. Gaining the proper knowledge you will need in learning more about filing bankruptcy is very important so that you do not end up making the wrong move. Filing bankruptcy is not the end of the world, however, you can expect it to follow you for several years along the way. Unfortunately many people may judge you because of having to file bankruptcy in the past. Even if your time has passed and you are trying to regain your financial status.

Many people may not want to give you loans, fearing that because bankruptcy existed in your past that you may encounter some problems when it comes to keeping your debts paid on time.



Sometimes you may have no other option but to file for bankruptcy and if that is the case, try not to let it get you down for too long and remember their are bankruptcy lawyers out there, available for your purposes and can take care of everything for you, relieving you of some of the headaches and stresses of trying to take on all of it on your own. Doing that can just be too difficult and you may not have the proper knowledge about it and end up making a big mistake in choosing the wrong type of bankruptcy that could be available for your needs. It is important to know what you are getting yourself into and having the peace of mind in knowing someone else who is educated on it is the one taking care of it all. It is far too important for you to take a chance one doing something you may regret in the end.

Questions About Bankruptcy You May Have

Most of you probably already have some knowledge about bankruptcy but some of you may need legal advice in getting you the proper advice on wether or not you should contemplate doing so. Many people have this misconception that having to file bankruptcy means you must be irresponsible because you obviously do not pay your bills properly or some may think that filing bankruptcy means you are less of a person than others. It does not mean that you are a bad person if you have to file bankruptcy, it simply means in some cases you may be unable to pay off your creditors in a timely manner and you just need a system planned out for you in order to help you with these issues.



In order to declare bankruptcy you will have to do this through an attorney and it will end up going through the courts systems in order to finalize everything and make the preparations for you and your creditors. There is more than one way to file for bankruptcy, your bankruptcy lawyer will be able to get into all of that with you when deciding which one is best suitable for your current situation.



Once the bankruptcy is completed the creditors that you previously owed will not have the legal rights to question you about your payments any longer. It will be settled in a court of law and once it is over, it is over. However, once the filing for bankruptcy is completed you need to be fully aware that this has a huge affect on your credit report for a very long time, perhaps up to 10 years or more. This kind of thing will show up first thing on a credit report in bright red for all to see and this could effect your ability in being able to get any kinds of loans or credit cards for a long period of time. Which is kind of ironic isn't it, because these kinds of things are what helped in creating this problem that lead you to file for bankruptcy in the first place, you would think if anyone understood, it would be the creditors themselves.



Just because you are filing for bankruptcy does not mean that it can not be denied. If it has been noted that you have been spending money left and right on purchasing trips wherever or running up your bills constantly they could decided that no matter what actions you are trying to take, you are just untrustworthy and they will not try and work with you at all. So, be careful when deciding to file for bankruptcy, know all there is to know about it and be certain that you are indeed trying as hard as you can to get your finances back in order, if you can prove this than being approved for declaring bankruptcy is more likely. Credit counselors and attorneys are available to answer any questions that you may have regarding bankruptcy laws so make sure you look into it very close before choosing to take any further actions.

Processing Services For Bankruptcy Forms

If you are one of the many in the business profession, then you may already know that thanks to the growth of technology, you now have the abilities to earn more money than before, right from your home, as a bankruptcy forms processor professional. Your options will be limitless when it comes to jurisdiction. This will give you even more of an opportunity in making a delightful amount of money once you are well established.



When choosing to work from home as a bankruptcy forms processor many lawyers will find out about you and could possibly end up hiring you to do all of their legal documents for filing bankruptcy as well. This kind of thing is becoming more and more popular all of the time, it is something some of you should consider learning more about for perhaps your own business opportunities.



Most of the times in this type of business, you yourself does not even have to ever meet any of your clients that you are providing information for, unless you choose to do so when they are meeting with the attorney in charge of it all. If the attorney handling the clients bankruptcy forms accepts the bankruptcy case, he will then simply fax or email the bankruptcy forms to the bankruptcy forms processor, they will then complete the bankruptcy forms necessary for the clients.



If there is ever any information that the client has not filled out properly or at all, then the bankruptcy forms processor may just have to call them up to get the information necessary to complete their forms. It is that simple really. Once all of the clients bankruptcy forms are completed the bankruptcy forms processor will then send the information back to the attorney through an email. Upon receiving the bankruptcy forms from the bankruptcy forms processor the attorney will then look over all of it, making any corrections necessary and note those changes in email back to the bankruptcy forms processor, they will work together this way all of the time.



After the bankruptcy forms processor receives this information from the attorney they will then make all changes that are necessary before resending this information back to the attorney so that he will be able to continue on with the bankruptcy case once it has been finalized and approved. He will proceed by either contacting his clients by email or telephone and in some cases they may need to meet to discuss some issues, sometimes they may never see one another until the court hearing occurs. The bankruptcy forms processor will now begin filing the bankruptcy petition information electronically to the courts and to the attorney for copying and filing procedures to be completed.



So, if you are one of the many people out there that are tired of your job at the office or wherever you may be at this point in your life, you too may want to consider the possibilities of becoming a bankruptcy forms processor and be able to have the luxury of staying at home and earning a very rewarding income.

Pre-Bankruptcy Counseling

With the new law passed in 2005 in regards to the filing of

chapter 7 bankruptcy, it became law that anyone filing must

first get pre-bankruptcy debt counseling.



The debtor must get counseling and certification from a

non-profit credit-counseling agency before the forms can be

filed for your bankruptcy.



This usually entails one or more counseling sessions and

when completed, certification so you can proceed with the

bankruptcy filing.



There is work you need to do even before you get your

pre-filing credit counseling certification. There are forms

you will need to have filled out during your sessions.



One is the income certification form. This exposes your

income and includes a fee schedule. There is also a budget

form that will need to be filled out. It is pretty

self-explanatory.



With these forms complete, and your certification now

complete, you will need the non-profit credit counselor to

fill out your affidavit and agreement for credit

counseling. Your attorney, along with a copy of your state

ID, must also notarize this form.



All of these forms must be presented to the court clerk

before you begin to file your bankruptcy paperwork along

with a notable fee.



Many companies offer this service not only in their office,

but also online with one-on-one telephone counseling

sessions. Once you have completed these steps, you are

ready to file the paperwork with your bankruptcy court.



Be prepared though because following the court process,

there will be another counseling session you must attend.

This time it is a financial planning session, which will

help you get back on track to a financially better future.

Personal Bankruptcy

Anyone having to consider filing bankruptcy must be really afraid of all of that scary paperwork and then thinking about how this is going to affect your credit afterwards, well, that can just be very overwhelming and terrifying for some. Many people have had to file for bankruptcy, it does not make you less of a person at all. Sometimes we are just handed things in life that we can not handle and this is one way to try and help yourself get your finances under control so that those bill collectors can stop calling you and you will be able to rest better at night, knowing it is all over with.



Filing bankruptcy gives you an opportunity to start over, a fresh start is just what your financial situation needs because it has been hounding on you every time you wake up and all throughout your days. Financial strains can cause relationship problems, which sometimes can lead to divorce. It can also cause depression in some people, which is a very serious condition if not treated properly.



The main thing you need to remember when filing for bankruptcy is that you should make 100% certain that you know exactly what your assets are, along with your liabilities. If you can plan this out properly and do all of the preparations necessary, you may not even have to worry about hiring a bankruptcy attorney for helping you in filing for your personal bankruptcy. What you would need to do if you decide not to hire a bankruptcy attorney would be to file a straight bankruptcy. To do this all you have to do is purchase the proper forms for this type of bankruptcy, for you to complete. You will have the ability of purchasing these bankruptcy forms at most office supply stores in your location. Just go in and let them know what it is you are wanting to purchase and someone there should be able to assist you on your needs.



If you have decided to do all of the proper paperwork on your own and you have purchased the bankruptcy forms, all you have to do is make sure you fill out these personal bankruptcy forms exactly as needed in order to follow through with your filing of personal bankruptcy correctly. The bankruptcy forms can be kind of confusing but in order to fill them out properly you should really prepare yourself for doing so.



Choose to prioritize all of your creditors, these are the ones who have extended you credit by using some sort of collateral. Next would be the creditors that have given you loans solely based on your good name and word of honor. Listing everyone of your creditors is vital to you because if you do not do so then these creditors could end up turning around and suing you, even after your bankruptcy has gone through. After all of this is completed and notarized, you simply pay the small fee to the courts and from there, they take over. You will no longer be liable to pay the debts to your creditors that you listed because everything has been taken care of in court.

Other Things You Can Do, Instead Of Bankruptcy

So many people that have the unfortunate experience of having to file for bankruptcy may not have known that there were other options available to them, they may not have done the proper research before going ahead and filing for bankruptcy. I bet if you went back and talked to many of them they would tell you now that they really wish they could turn back time and look at their other options, rather than doing what they had to do. It can have a very long term affect on your credit rating and that could create problems for you for many years to come.



People should think about doing some research before deciding to file for bankruptcy, because they will learn that there are other options such as, credit counseling, debt consolidation, legal voluntary arrangements with the creditors, and other types of informal arrangements with your creditors. Many people may not have known about these types of arrangements before jumping into filing for bankruptcy, which I am sure they probably regret everyday. It is unfortunate that some people do not take the time out that is necessary in finding other alternatives for rebuilding their current credit declines.



With credit counseling you can simply get on the internet and research it and it will lead you in the right direction on speaking with someone about credit counseling and several of the many advantages this would have in improving your current standing. The internet is a great place, full of limitless information, everyone should take advantage of it when needed. Some choose debt consolidation in order to relieve them of their financial burdens. They have the ability in breaking down all of your debts into one monthly payment which can be much easier on you from month to month.



Legal, voluntary arrangements could be made through an Insolvency Practioner (IP). They have the ability to legally create proposals to your creditors offering them an arrangement of some sort, in order for them to get their money in full or monthly payments that are spread out throughout several years. It will just depend on what you are able to do and if they are going to agree to either of these and because it is legal, they will have to agree to one way of payment arrangement.



Informal arrangements are arrangements made informally by the debtors to their creditors. Some credit counseling agencies can advice you on something such as this. You may be able to get the creditors to agree to some type of payment arrangement but you need to keep in mind that they may still have you in bad standings with the credit bureau, even though you are making payments of some kind.



Remember that there are other options out there available to you rather than filing for bankruptcy, so do the proper research available on the internet and through credit counselors, you will be glad that you chose another alternative.

Online Bankruptcy Forms

Some people may not be aware that they can have the ability to file for bankruptcy on their own, without having to worry about getting an attorney to do all of the work for them, which is not free. There are many places you can get your hands on bankruptcy forms, but having the privacy and convenience of being able to obtain one off of the internet could be something that you may consider doing.



The thing you may not already know is that you can get a bankruptcy form off of the internet for free of charge. There may be some places that will try and charge you for obtaining a bankruptcy form, so watch out for that. Noone wants to pay for something that they can already get for free, so do the research so that you can enjoy this option. By choosing to get your bankruptcy form off of the internet you need to keep in mind that some sites may mislead you and either end up charging you for these forms or not even send you the correct bankruptcy form that you need in order to complete it properly.



Make sure you ask around and take the time out to investigate where it is you are considering getting your bankruptcy form from and by whom. You should also know that different forms are for different locations, so when getting your bankruptcy form off the internet or anywhere else, make sure you are getting the right form for where you are living because it would be a waste of time to complete one that is not correct, then having to go through it all over again. Many laws are different depending on which state that you live in, so making sure you fill out the correct bankruptcy form is extremely necessary for these reasons.



Once you have decided where you are getting your bankruptcy form from, you need to be preparing yourself in gaining the knowledge on what different types of information that you will need in order to be able to fill out the documents correctly. No matter where you get your free bankruptcy forms from, you should definitely know that there will be instructions available for you upon preparing to fill these out.



It is very important that these documents are filled out properly because one mistake could really cost you and it could create problems in you being able to file for bankruptcy. Without proper detailed instructions you may unfortunately end up having to hire an attorney to do all of this for you, which is what you were attempting to avoid in the first place. If after reading all of the instructions for filling out your free bankruptcy forms, you are still unclear on exactly what it is you are supposed to do, then you may have no other option but to go ahead and consider getting an attorney to do these things for you, for your sake. An attorney can guide you through these processes and make sure that your information is correct, so you can continue on with the processes of filing for bankruptcy.

Online Bankruptcy Assistance

If you are considering the option of filing for bankruptcy and you are not sure what it really means then you should probably decide on doing a little research over the internet. By researching online you will have the ability in gaining knowledge about filing bankruptcy so you can then make the decision on wether or not you will be choosing to do so.



People really need to weigh out all of their options when deciding on something such as filing bankruptcy. It can be detrimental to your credit ranking and will tower over you for many years to come. It is never an easy decision to make but sometimes you may not have any other options when trying to reestablish your financial standing. Just do not jump into something before you do all of the research available to you on the internet.



Once you have completed all of the research that will be necessary and decided what it is you are going to do then you should feel more confident in making the right choice and the effects it will have in your life. If you have chosen to file for bankruptcy the first thing you should do after the research is complete, would be to either get yourself a bankruptcy attorney or purchase the bankruptcy kit off of the internet, which includes everything that you will need in order to file for any type of bankruptcy.



If you are still not sure which path to take then continue online with your researching on bankruptcy. You should be able to find other alternatives for getting your finances back in order, without having to file for bankruptcy. There should be information on different types of credit consolidation or loans that would be available for your purposes of getting your debts paid.



You should also be able to find out more information on consumer credit counseling that may help you achieve debt relief after some time. Just knowing that there are other options available to you other than filing for bankruptcy should be a huge relief and may actually be something you can achieve at home, on the internet. That should not be too complicated, perhaps just a little time consuming.



Keep in mind while researching on the internet though that there are so many scams out there that offer you help in gaining financial stability and end up taking money from you before you even realize it. These kinds of scams are the last thing that you need occurring at a time such as this, with already having to possibly consider filing for bankruptcy, if you can not find any other options suitable for you. So just make sure you know what you are looking into when you are doing it. Go to forums, where other people just like you can possibly give you some advice on where to search online or who to speak with, that could give you information on filing bankruptcy or other alternatives you could consider.

One Credit Card Can Improve Your Credit After Bankruptcy

After filing for bankruptcy you may be wondering if it will ever be possible to rebuild your credit score. You may find yourself thinking that you may never be able to get a loan or be approved for any type of credit after this has happened. What you need to keep in mind is that many, many people have had to file for bankruptcy and it is very possible to get your good credit standing back after filing for bankruptcy, you just have to learn how to do it.



Something that can help you improve your credit score after filing for bankruptcy is actually getting a credit card. Yes, a credit card. I am not talking about a huge credit card, it is very important to start out small when you are first beginning the processes of improving your credit after filing for bankruptcy. A small credit card that you could use atleast once a month and then pay it off every billing cycle would help on improving your credit within a year. You must never, under any circumstances, miss a monthly payment. Keep this credit card small so that you know you will have the money to pay the bill each month. By doing so you are allowing any lendor to view the fact that you have kept your monthly payments current, every time and this will really look good in showing you can be responsible for your debts.



Just remember when you are using your credit card for improving your credit score, do not max out your credit card. If you do that it would show the lendors that you are still capable of putting yourself in a financial situation that could be hurtful to your credit very quickly. Use it wisely and always make that monthly payment! Prove to them that you have the ability to improve your credit responsibly and consistently, this will increase your risk factor whenever you decide to borrow money down the road, after filing for bankruptcy.



Be careful when choosing the proper credit card though because choosing one that requires a co signer could be a problem for you since you have had to file for bankruptcy prior to obtaining this credit card. But you do need to know that these types of cards tend to have a higher interest rate. When choosing a credit card program just make sure that you choose one that you will be able to handle. Make sure you get one that your current finances will allow you to keep up the way it has to be in order to improve your credit rating.



After filing for bankruptcy you need to know that a good credit score is very important but just making regular payments on your credit card is not the only way that your score is affected. Make sure that you do not have many accounts because when they show up on your credit report that will not look good, they do not want to see that you have all of these open existing accounts, so close the ones you do not need. These things should help increase your chances of achieving a better credit score rating.

New Bankruptcy Laws

Learning more about bankruptcy can be a very difficult and confusing task. The laws are changing so often these days that it may be tough to stay up to date on all of it. You need to make sure you do the proper research available to you on the internet before you decide to possibly file for bankruptcy, or by getting advice from a bankruptcy lawyer that someone you know has recommended. Bankruptcy is occurring so often, more now than ever before. The reasons as to why this is happening may vary from person to person but in the end of it all, every person that has filed for bankruptcy is pretty much on the same boat.



Congress has passed the bankruptcy abuse prevention, along with the consumer protection act as well. Their idea on some of this is that most people that are having to file bankruptcy are doing so just because they can get out of having to pay off their debts that they never intended on paying off anyway. They think that many of these people having the ability to file for bankruptcy are just simply getting out of their financial responsibilities and letting someone else take care of it for them. No muss, no fuss.



The fact of the matter is really that most people having to decide on filing for bankruptcy are doing so because they really can not pay off their debts because of the inability to work due to an illness or because of some other horrible event that may have occurred, preventing them from being able to pay off their debts. It is not something that most people would consider to be an easy choice at all, it is pretty much a last resort answer to their enormous debts owed. Nevertheless, the law was still certainly passed and from this day forward anyone filing for a chapter 7 bankruptcy will have to alteast pay back half or a portion of their debts that they owe to the creditors. Even if they are still not financially able to, they will just have to find a way.



What some people may not realize about these new bankruptcy laws is that it does not even matter if you have debts due to identity theft, or by any other means. It will still be your sole responsibility in paying off some of those debts that occurred because of someone else literally stealing money from you. Who says that the laws have to be fair right? The bottom line is, they exist now and you really should reconsider your options when deciding on wether or not you should in fact file for bankruptcy, due to financial burdens in your life that you can not help. There are many other options available to you, you just have to look in the right places to get the right kinds of advice and help on this matter. Perhaps you could consolidate all of your debts into just one monthly payment or get credit counseling, where a professional can help you take the proper steps into getting your finances back in the proper order needed for a much more stress free life.

Myths About Bankruptcy

You may hear different things about filing bankruptcy every time you turn around. It may be that not everything you have ever heard about it is actually even true. You need to make for certain you do the proper research when taking on any tasks you have never taken on before. You can find so much of the information you are looking for right on the internet if you just take the time out to look for it.



There are some things about bankruptcy that is absolutely not true. One of those being that all of your debts could possibly be erased forever after filing for a Chapter 7 bankruptcy protection. That could not be any more untrue. Some of the debts that you have had do not have the ability of being erased from your credit because they in fact have to be paid off, things such as student loans or child support.



Some of those commercials you see about filing bankruptcy being pain free or easy, do not believe the hype. There is nothing about filing bankruptcy that is going to be easy or pain free. It is going to be very stressful and extremely draining going through all the processes necessary in getting everything completed. This can cost you your job and even attach a terrible label across your forehead to many people that find out about it. Things such as bankruptcy have been partly to blame for many failed marriages all around.



Bankruptcy can actually stay on your credit report for as long as 10 years or more. I am talking about something really serious here people. You need to weigh out all other options that you have before choosing to file for bankruptcy in hopes that it is your "easy" way out of financial pile ups. Try going to visit a financial consultant or checking out some books in the library to research what you may be able to do to improve your current financial burdens. There are attorneys out their that can give you advice, you just have to be willing to pay a high price, otherwise you should consider filing for bankruptcy on your own, if you decide to do so. Like I said before though, really make sure this is something that you will not end up being sorry for doing down the road. It will be too late.



Do not depend on filing bankruptcy for any other reasons than, you absolutely have no choice in the matter what so ever! It can be far more damaging than good. It has the ability to affect your life for many many years down the road. This must be a last resort for sure. Do not believe everything that you hear, bankruptcy is not for everyone, it is not always the answer in regaining your financial freedoms. It will not turn your credit rating all the way around, there is no guarantee about that, so remember when considering your options, think long and hard about what else you might could do in helping you get your life back in order.

Medical Bills Increasing Bankruptcy Files

So many of the reasons for people ending up having to file for some type of bankruptcy is due to the increasing medical expenses that have just gotten completely out of hand. Filing for bankruptcy is never an easy choice but with so many people not having enough medical insurance or any at all, the bills just keep increasing more and more and they end up having no other option other than to file for bankruptcy, to help relieve them of some of these ridiculous expenses that could not be helped.



If you are employed and your place of business fortunately offers to you some type of health benefits, you may really need to consider investing in that. It may be rather expensive but compared to what you will be paying if you get sick, with no insurance, the consequences are much more dire. The most important thing about dealing with an illness, should be concentrating on getting better, instead of how you will be paying for these expenses. Some employers may be offering more versatile plans than the standard health insurance. Some of these include, health reimbursement accounts and health savings accounts, both of which carry high deductibles.



When an employee unfortunately becomes laid off from their current place of employment they will have the option of a health insurance transition plan, such as the COBRA plan. You will pay a little more for this plan but you will be insured for up to 18 months after being laid off from your job. Insurance is necessary if you want the proper treatment and so that you do not end up with enormous medical bills that you absolutely can not afford to pay.



Trying to insure yourself you may find that you will be somewhat discriminated against in some instances. If you have any existing medical conditions it will almost be impossible to achieve purchasing any kind of insurance on your own. The rates would be outrageous and chances are they would never agree to cover you to begin with upon finding out this information.



So many people are stumped by the current medical bills that they have acquired and so many people unfortunately do not have any medical coverage at all. Unpaid medical bills can get you into a lot of unwanted troubles, including being summons to court by the law. They will come after you if you do not pay these debts that you have owed to them. One way or another, they are going to get their money. That is just the way it works. This is why so many people are having to contemplate filing for bankruptcy, because it has just become impossible for them to keep these medical expenses paid from month to month and they can not take the pressure any longer. People have to find a way out sometimes and in some cases, filing for bankruptcy is the only way to take care of these debts in their lives.

Is Bankruptcy Your Answer?

Before choosing to file bankruptcy you need to check all of your other available options. Make sure you take the time out to research all of the aspects concerning bankruptcy before you take that step. It may be right for you or not. It is something that many people have had to do in order to get their financial stability back in order.



If you can not pay your bills any longer, then sometimes you just have to decide on the possibilities of having to file for bankruptcy. In the United States there are a couple of different types of bankruptcy that you have the option of filing. One of those is Chapter 7 and the other is Chapter 13.



In many cases people go with the option of choosing Chapter 7 when filing for bankruptcy. The reason so many choose this option is because it will allow you to liquidate all of your non exempt assets and by doing so, you will be able to sell them and disburse that income to pay off all of your debts or most of them. By choosing to file a Chapter 7 you will be allowing yourself the ability to possibly get one step closer towards financial relief.



Some however choose to file for a Chapter 13. When doing so this kind would allow you to get court approved arrangements made to the creditors and have them basically figure out all of your bills for you and then they begin the processes of setting up some kind of payment arrangements in order for you to pay off some of them at a slightly slower pace, possibly allowing you up to 5 years to get them all taken care of. With Chapter 13 you will also not have to worry about them being able to take any of your property, which is really a blessing. This will relieve you of many of those constant phone calls by bill collectors that you try avoiding and you will also be able to sleep a little better at night in knowing that you still have your car, your home and other belongings because of choosing this type of bankruptcy. In some instances you may not have a choice as to which kind of bankruptcy you will be filing. They may look at your monthly income and determine that you have to file a Chapter 7 even though you had planned on filing a Chapter 13. If your income is too much this would be the case.



Bankruptcy is never a pleasant experience, either way you look at it. It is not something that any of us anticipate ever having to do but sometimes due to unexpected bills that may accumulate, you may be stuck in a situation as to where you have no other options at all, and if that were the case you may not have any other choice but to file for bankruptcy. The bankruptcy laws have changed quite a bit throughout the years so be sure you are updated on any of those changes before making any kinds of decisions in regards to any possibilities of having to file for bankruptcy.

Is Bankruptcy Being Abused?

Most people file bankruptcy because they have no other choice, they have tried so hard, for so long, to pay these overwhelming amounts of debts but just can not possibly afford it any longer. However, some people file bankruptcy because it would be their easy way out. They ran up all of these debts, knowing they could not actually ever pay for any of them, and in the back of their minds they were contemplating filing for bankruptcy to fix it all, right from the beginning. There are people out there that file for bankruptcy and have no problem in considering doing so, it is so all of those debts that they created will no longer exist and they can start all over, running up even more debts than ever before. They may spend their entire lives this way, abusing the system and getting away with it.



It may be hard for certain people to imagine that others may be doing this and getting away with it but it is true, it is happening more than any of you could possibly think. It seems as though the people that really do need the help can never actually get it or it is made quite difficult when attempting it and there are those that do not care about living beyond their means and can get the proper help that they need, with no major difficulties whatsoever. It is a disgrace and very discomforting to know that these things are actually occurring at this point in time.



Once some of these people that I am talking about has actually filed for bankruptcy and everything is completed, it will then be easier than ever for them to obtain a good line of credit, to run up and ruin all over again, which they will. Some creditors are simply thinking that since the consumer has filed for bankruptcy then all of their old debts are paid for and they are now more able than ever to spend even more money, so they very unwisely jump at the chance to help them along the way.



Just because someone has filed for bankruptcy does not mean that they will then inevitably fail to take care of all of their debts in the future. For most, that is not their financial plan, they do not want to ever get back in the same boat that they were once in, that led them to having to file for bankruptcy in the first place and making life much more difficult on themselves for quite awhile. As with everything out there that will help in the assistance of those in serious need, there will be some that take advantage of it and give it a real bad name for some.



Filing for bankruptcy is not always the answer but sometimes it can not be prevented. As for those who are abusing bankruptcy, they should really reconsider their thinking and try and actually do good in life and handle all of their responsibilities, instead of getting off the easy way, or so they think. Life is difficult enough anyway, without the financial struggles. If you are contemplating having to file for bankruptcy, you need to make sure that you have done everything in your power to help your current situation first and do not ever think that filing for bankruptcy is an easy way to fix your financial situation that you have gotten yourself into. There are other options available to you.

Information On Bankruptcy

There are a couple different ways to file bankruptcy, one is voluntary. When filing bankruptcy voluntarily it is stating that you as the debtor can not pay your debts and are recognizing that. The other way is involuntary, this occurs when your creditor claims that you can not pay your debts with them and they are in fact declaring you bankrupt. The most common way though is voluntary.

Any amount of information that you need to gather could be done so by researching over the internet. You will find an abundance amount of information on bankruptcy and the different types to file and how to contact about doing so. Try visiting a few different financial websites, those might be of more importance to you at this point. They will provide you with all of the information you will need for your purposes.

There are many ways you can learn that will provide you with the assistance you may need in order to keep from ever actually having to file for bankruptcy. These websites and booklets would give you helpful advice to get you well on your way to a better financial standing, so that you do not have to take the dreaded route of bankruptcy, that everyone hates to think of ever having to do.

When it comes right down to it and you have no other option but to go and file for bankruptcy then you should really think about doing your own research regarding it so that you do not have to rely on a lawyer's help in doing so. You can imagine how expensive that could get. You are already in a financial bind or you would not be filing bankruptcy in the first place. Why would you want to add even more expenses to your table when you do not really have to. Some may think that hiring a lawyer is necessary but it is not. With the proper kind of research online and through books, you can take care of filing for bankruptcy on your own.

Just be careful when filing for bankruptcy without a lawyer. Make for certain you do the right kinds of research so that you are informed of all of the laws surrounding bankruptcy. If you are not certain then you better ask around or seek advice from a lawyer because this is not something to take on lightly. Another way to save on the amount of time you may have to invest in researching the facts about bankruptcy would be to simply get online and search for a low costing bankruptcy kit. This kit will have everything in it that you will need for filing your bankruptcy, without the assistance of a lawyer and all of those lawyers fees. It will include with it, documents and different types of forms that you will need when filing bankruptcy, it will also show you some example schedules that you will need to know how to fill out once you are prepared to file for your bankruptcy.

Expenses Of Filing For Bankruptcy

Many people are concerned about following through with filing for bankruptcy due to all of the expenses that can add up during these processes. The things that they need to think about is that yes, it can be quite expensive to file for bankruptcy but you need to think of it like this. These expenses may be large but compared to all of the outrageous debts that you owe, it really is quite small in the end of it all isn't it.

You really should not jump into filing for bankruptcy but if worrying about the expenses is what has been holding you back, then you should probably reconsider because getting your financial status regrouped will really benefit you after it is all said and done. Filing for bankruptcy can change your life in many different ways, you should really consider researching it on the internet before you make any decisions. Being informed is the key before doing anything that you are not quite sure about. As with anything, there are advantages and some disadvantages from filing bankruptcy. You just have to decide which way will benefit you more financially in the aftermath.

People will have to make the decision on whether or not they are going to file for bankruptcy on their own or if they will be choosing to hire a bankruptcy attorney for completing these processes. If you choose to file for bankruptcy on your own, it will not cost you nearly as much. However, you better do all of the research necessary in learning how to complete all of the bankruptcy forms properly, one little mishap could really mess things up and you may end up having to hire a bankruptcy attorney in order to complete the bankruptcy forms, after all of that trouble.

So, for those who have decided to hire a bankruptcy attorney, you can expect that part to be a pretty large part of your procedures expenses in the end. When filing a chapter 7 the court cost of it would be a couple hundred dollars, that includes your filing fees and notices fees. If you choose to file chapter 13 you could expect these expenses to be about thirty dollars cheaper than when filing chapter 7. The costs of both of these does not change whether you are filing jointly with your spouse or filing separately. The expenses for hiring a bankruptcy attorney, if you choose to do so, will be higher than the actual bankruptcy fees all together.

Whether you decide to file for bankruptcy on your own or by hiring a bankruptcy attorney to do so, you can expect their to be some expenses involved, but like I said before, the costs will be much less than your actual debts are that have gotten you into this position in the first place. Before you do any of this, just make sure that you have all of the information available to you in order to be properly informed about the laws and regulations in your state and some of the expenses that you can expect from filing for bankruptcy and hiring attorneys.

Credit After Bankruptcy

People considering bankruptcy have many questions regarding

how future credit will be affected. Some think that it will

be 10 years before they can get credit again, or that they

will never get a credit card after their bankruptcy.



Common questions debtors have are usually about keeping

current credit cards, establishing new credit and buying a

home.



If money is owed on a current credit card, then it must be

listed in your bankruptcy forms as a debt. These forms are

filed under penalty of perjury and if fraud is detected,

your bankruptcy case can be discharged.



Also perjury is a federal crime punishable by a fine and

time in prison. Neither circumstance is ideal for someone

trying to repair his or her credit. But if nothing is owed

on the card, then it does not have to be listed.



But this doesn’t necessarily mean you will get to keep your

card. Your company may cancel your account as a

precautionary measure.



Credit is now available to the recently bankrupt. Though

most will find high restrictions such as lower limits and

higher interest rates.



But it is not necessarily a good idea to start up right

away with those credit cards. Usually it is what gets

people into trouble in the first place. It is also

important to avoid credit repair scams.



After filing for bankruptcy, many people are afraid they

wont be able to buy a home for 10 years while they have a

history of bankruptcy on their credit report.



Usually 18-24 months within a bankruptcy discharge, debtors

can qualify for a loan on the same terms as if they had not

Consider Hiring A Bankruptcy Attorney For Your Bankruptcy

At that point in your life where you do not know what else to do other than to file for bankruptcy, you should know that you are not alone and you do not have to attempt in taking care of all of this by yourself. You should really think of considering hiring a bankruptcy attorney for your own personal bankruptcy needs. They are available to you for these purposes, some offer free advice but most of the times you will be out quite a bit of money upon hiring a bankruptcy attorney but it will definitely be worth it, with everything that they are able to help you in accomplishing at the end of it all.



Bankruptcy attorneys can help you in eliminating all of your debts because they can actually pay off all of your creditors by liquidating all of your personal assets. If you are just wanting to do some reorganizing of your current debts, then the bankruptcy attorney would be able to assist you on that as well, by telling you what you need to do in order to pay back all of your creditors within a set period of time approved by the courts.



A bankruptcy attorney has all of the knowledge of the laws and regulations and state codes. Filing for bankruptcy can be a very confusing task to most people, so it is important that you hire the proper bankruptcy attorney in order to get everything accomplished to your satisfactions. Take your time in choosing the right bankruptcy attorney for yourself and what you are needing, do the proper research, talk to atleast a few bankruptcy attorneys before deciding which one you will be choosing. You need to know that they are indeed knowledgeable about what they are doing and can help in guiding you properly through these proceedings.



Once you have figured out which bankruptcy attorney you are in fact going to choose that attorney will then be able to help in determining which bills have the ability in being eliminated and which assets you could possibly retain, and finally be able to let you know which type of bankruptcy you should be able to file for. Having a bankruptcy attorney will be the assurance that you are needing in possibly being able to achieve better outcomes during the court hearings. Your bankruptcy attorney is not only available in helping you with your needs, they are also available in helping the creditors receive their money that you have been owing them for so long. So they do not only benefit you the debtor, they are also benefit the creditors wanting their money greatly.



Hiring a bankruptcy attorney will benefit you in every aspect of filing for bankruptcy. You will not have to worry about filling out all of those confusing documents when you have a bankruptcy attorney. They have the knowledge to make filing for bankruptcy much easier on you and they have the ability in offering you some really good financial advice for your future, after the bankruptcy hearings are over with.

Chapter 13 Bankruptcy

While filing for bankruptcy, there are several codes, which

an individual can file under. One such chapter is 13, which

allows the debtor to keep property and pay the debt off

over time.



The debt is usually paid over a three to five year period.

This chapter is usually chosen by those who have a regular

income and who do not wish to deal with the new laws of

chapter 7 bankruptcy codes.



Also known as the wage earners plan, chapter 13

bankruptcies enable debtors to pay off part of the debt

they have incurred.



While it is not as good as being able to work something out

with your creditors and arrange payments individually or

through a debt consolidator, it does show some financial

responsibility and the debtor’s willingness to make up for

their mistakes.



Chapter 13 bankruptcies act as sort of a consolidation loan

in itself. Because the debtor is making payments on the

owed monies, it does not have such a bad impact on the

credit reports. But the individual does not have direct

contact with the creditors and payments are distributed

amongst them.



To be eligible for the Chapter 13 bankruptcy an individual,

even if self-employed must have an unsecured debt of under

$307,675 and secured debts must be under $922,975.



No debtor may file for chapter 13, or any bankruptcy

chapter during the preceding 180 days of a previous

bankruptcy petition was dismisses.



There are fees that must be paid also when filing for

bankruptcy, even the chapter 13 code. The courts charge a

$235 case filing fee and a $39 miscellaneous administrative

fee. These fees must be paid when filing unless with the

courts permission, it can be paid in installments.

Car Shopping After Bankruptcy

Having the ability to go out and buy something after knowing that you have bankruptcy lingering over your head for many years is really a hard thing to imagine being able to accomplish. If you have filed for bankruptcy and are thinking things like this then you should get online and get to talking with some people that have had to file bankruptcy before, I bet they can fill you in on some things that might give you that little bit of hope that you are needing.



When you are first beginning your journey of regaining your credit so that you can purchase a car perhaps, there are some things to keep in mind. Make sure that you have done everything necessary in establishing a good credit rating. Do not even think about going out car shopping until you are almost 100% certain that you will stand a chance in having the ability to get a loan for a vehicle, otherwise do not bother, it may take longer than you had hoped. If you know that you are in good standings then it may be time to get up off the couch, stop sulking over things and get to shopping for that car you have been waiting for!



Once you have decided that you are ready to take that plunge and you are wanting to go car shopping, then you will need to think about one more thing. You will then need to determine if you are going to attempt on financing through the dealership or through an outside financing company. This is only if you even can get approved in the first place.



After filing for bankruptcy the best way to go about getting a loan for a car would probably be through an outside financing company, however, it truly just depends on the situation, the prices and if the dealership may offer something you can afford, if you are approved. Making sure that you choose the proper way of financing the car is very important, it could mean a huge difference in how much money you can expect to be out for all kinds of different interest charges and fees.



If you can get approved through the dealership, you will then have the opportunity in speaking with the car salesman, you should remember that it is always about the right kind of negotiating and whether or not it is your lucky day really. However, if you were able to go through an outside financing company then your worries about having to negotiate should be much less. Either way it goes, whomever you have to do the dealing with, it is all about proving that you have the ability in keeping these payments made, and for a long period of time. If you have taken all of the proper steps in improving your credit score prior to attempting to purchase a car then you should really have no worries, the proof is in the pudding, so to speak. Good Luck!

Buying A Home After Bankruptcy

After you have filed for bankruptcy you will now have all of your debts paid off, and can now try beginning to start over with a fresh start. There will be many things you will obviously be looking forward to now but you need to remember that after filing for bankruptcy your credit is going to take a long time to reestablish, possibly up to 10 years. So keep in mind when trying to obtain new credit for yourself you are probably going to run into some problems. One of those problems being, extremely high interest rates and finance charges from the creditors.



Many of you might possibly be considering purchasing a home after filing for bankruptcy, so you should think about doing the proper researches on how to rebuild your credit after doing such a thing, so that you can increase your chances on being able to get a loan with a mortgage company. You should be thinking on how to prove yourself to the mortgage loan company you are trying to purchase a home through. They will need to see that you do not owe any old unpaid debts, so make sure after you have paid off everything, that they have put it through the systems so when the credit report is ran it does not show you still owing them, it needs to be updated and accurate to benefit you in this manner.



You should be able to obtain a credit report for free atleast once a year, you will be able to find this on the internet at the proper websites. It is necessary that you get one so that you can make sure everything that you have paid has been put onto the credit report and if it has not, you can contact the companies and have them do so. This credit report is very important in you being able to obtain a loan from a mortgage company in the future or from any other types of loans you may be needing.



Another thing you should keep in mind is that the mortgage loan company you are wanting to purchase a home through will want to see on paper that you have taken all steps necessary in rebuilding your credit. It will look really good in their eyes to see that you have gone through credit counseling because this will show them that you are taking the initiative in trying to regain your credit for these purposes.



At the credit counseling agency, they should be able to give you information on helping you rebuild your credit the proper ways. By taking their advice and getting these things done, it could really speed up the processes tremendously and that will help you in being able to purchase the home of your dreams, through whichever mortgage company you decide to go with.



Bankruptcy is difficult and it can really cause you to lose confidence afterwards but with the right amount of hard work and taking the proper steps, you too will have the ability to get your financial status back on the right track.

Being Able To Get A Personal Loan After Bankruptcy

There are several different things that a loan company will look for before approving you for a personal loan, after you have had to file for bankruptcy. The information that they will need you to provide to them is strictly confidential and it is for their own protection. They do not want to give personal loans out to just anyone and knowing that you have had to file for bankruptcy in the past they will want to be assured that they are going to be receiving their payments you are promising to make. These steps are being taken in order to make sure of that.


They will want to know if you have too many existing debts currently because they may be concerned that you may not have the ability to keep your payments made promptly. They will also be checking to see if enough time has lapsed since you file for bankruptcy, there is kind of a waiting period on getting a personal loan after filing for bankruptcy. Another thing they will be considering when deciding on whether or not they should approve you for a personal loan is possibly, how much collateral do you currently own, with collateral they will know that if you ever do get behind on your loan payments and it ends up in default, they will have something to get from you. Something else that will be on the top of their priorities would be, your credit score, they will have a minimum criteria that you will have to meet in order to be approved for your personal loan.


A lender is the one deciding on whether or not to approve you for your personal loan, they are only doing their job when asking you to prove yourself to them basically. Before you ever consider trying to get a personal loan after having to file for bankruptcy you may want to do some research on how soon it may be possible, before you even bother with it. It can be quite frustrating when a lender denies you, when you are in such great need. However, you should keep in mind that it will just take more time if you get denied at first. Do not let it get you down too much.


Work on getting your credit score back up to a higher standing and always making sure that you pay all of your bills on time, every time. And remember, do not get out there and get yourself into too much debt again, that can get you into so much trouble financially. You have already had to file for bankruptcy one time in the past, you never want to go there again if you can in any ways prevent it. You want to go up from here with your financial situation and you can do so by taking all the steps I have mentioned and you will be back on the road to financial freedom, where you have been waiting so long to be. By maintaining good credit for some time, you should have no problems when you decide to get a personal loan in the future.

Bankruptcy - Before And After

Bankruptcy is a very stressful event that some of you may be unfortunate enough to have experienced at one time in your life or possibly considering having to do so right now. Before you ever consider having to file for bankruptcy just make sure that you are certain of all of the laws and regulations and you will also need to know more of what to expect after the bankruptcy has gone into affect. You should be aware of how it may effect your life and in what ways and also know how you can properly maintain a good credit standing now that you are being able to start over from scratch.



When you first begin the filing for bankruptcy processes with a bankruptcy attorney, just know that this is going to take some time and patience in order for it to all get completed properly. It will also cost you quite a bit of money for the services that the bankruptcy attorney have available for your purposes. In order to get the things accomplished that are needing to be accomplished, then it is very necessary to have a bankruptcy attorney available to you. He has the knowledge it will take in order to achieve your bankruptcy hearings. Having the assurance that everything will be done promptly and correctly will give you the confidence that you need to get through this difficult time in your life.



Your bankruptcy attorney will be dedicated in helping you achieve your financial freedom that you have been waiting for for so long. Just keep in mind during all of these procedures that not all of your financial debts will be able to be discharged at the time of your bankruptcy hearing. Some things can not be ignored in the courts and creditors eyes, such as tax money owed or any kind of child support and also most student loans will not be able to be discharged in court. These debts absolutely have to be paid for, even upon filing for bankruptcy of any kind. Usually when people file for bankruptcy it is because of all of the credit card debts that they can not continue covering each month, along with other different types of unsecured credits that have been given to them.



Even though bankruptcy can affect your credit for a very long time to come, it does not mean that you will never be able to attain a good credit score, once you begin starting to try and rebuild your credit after the bankruptcy is completed. All you have to do is be able to prove to the creditors that you are now working hard, full time and taking every precaution when attempting to build more credit. They will need to know that you are perfectly willing and capable of keeping your debts paid each and every month. Once you can show them that you have changed and have gathered the proper knowledge on keeping your finances in order, there are many creditors that will give you that second chance that you are hoping for.

Bankruptcy And Refinancing

Filing for bankruptcy is something that unfortunately many of us will possibly have to consider doing one day. If you have to consider filing for bankruptcy, do not think that your life as you know it is over. You will at some point have the opportunity of getting your credit back on track.



After filing for bankruptcy you will have to wait a short period of time before you can begin the processes of rebuilding your credit rating once again. An important thing you really need to keep in mind when trying to rebuild your credit is to start off by simply keeping all of your bills paid on time and maybe even consider trying to get a credit card in order to reestablish your credit. Having a credit card and keeping it paid off is an excellent way of regaining good credit standings.



Being able to save money is not always an option for some families but if you can figure out how to do it, starting a savings account in your name will really help boost your credit rating. Do everything in your power to get your hands on some extra cash that would be available for depositing into an account such as this. It is so important to consider this. I am not saying go out and sell all of your beloved belongings but I am certain you have some things that you own that you would not mind parting with, that is just sacked up in the attic or piled up in a closet throughout your house. Go through your things and you may be surprised as to how much you can come up with for a possible yard sale or garage sale. These things are so important when preparing yourself for possibly refinancing your mortgage, which would be your main goal in trying to regain the credit you once had.



You have to do the proper research that is available for you online in order to find the right lending company to go through. Because of having to file bankruptcy you can expect to pay more on your rates than someone who has not. However, I am just talking about paying a smaller percent more, not that much really. That is, if you do the right researching first.



When refinancing your home after bankruptcy you may have the option of cashing out on your homes equity. If this is an option for you, then you should definitely choose it. It would be your best bet, because with doing so you will have available cash for your purposes of possibly remodeling your home or any other things that might be helpful in improving the overall look of your property. Within just a few years you will find that your credit rating has improved drastically. I hope that this will give you the new found confidence in knowing no matter what hardships life may have handed you previously, you now have the opportunity to rebuild and reestablish your new line of credit.

Bankruptcy

With so many people in society today finding themselves in
financial trouble more often, the rate of bankruptcy has
been on the rise.

The main purpose of bankruptcy is to give honest debtors a
fresh start, clearing most debts and discharging debtors
from legal obligations and providing the courts with
non-exempt assets to be distributed among the creditors.

Originally a bankruptcy case is started with the filing of
a petition. This petition declares the debtors financial
information and states his intent to declare bankruptcy.

Most individuals, who file for bankruptcy, file a chapter
7. This is a liquidation bankruptcy. This is where the
debtor’s non-exempt assets are sold off and distributed on
the basis or priority amongst the creditors.

Bankruptcy shouldn’t be the first step though. Many people
who find themselves in trouble immediately go to
bankruptcy.

First talk with your creditors and try to work something
out. They would rather take payments than deal with the
paperwork and money that goes into legal action that they
will need to take.

Next, speak with a non-profit debt consolidator. Many
people who think they are deep in trouble are only
borderline, and with some help and creative financial
dealings, debts can be paid off without the initiating of a
bankruptcy case.

When all else fails, a bankruptcy lawyer should be sought.
They are experts in the steps that need to be taken from
filing the paperwork to the court hearing to determine if
the bankruptcy filing is legit. False filing for bankruptcy
is a crime and punishable in court.

Bankruptcy Laws

In 2005 the U.S. was implemented with new bankruptcy laws
that passed congress. Before that time, filing for chapter
7 bankruptcies was an easy way out of financial
obligations.

Many people spent years being careless with their credit
and debts because it could be fixed with a quick filing for
bankruptcy.

Now that the law has changed, there are more restrictions
for filing a chapter 7. Before the 2005 revision, filers
could choose which code they wanted to file under. Income
did not matter.

One of the biggest changes is that now those with a higher
income will have to file under chapter 13 and therefore pay
off some of their incurred debt. The law also imposed new
restrictions on bankruptcy lawyers. It may be tougher now
to find a lawyer who will represent you in a bankruptcy
case.

In addition to the new income restrictions, there is also
mandatory counseling that debtors must complete before and
after filing for chapter 7 bankruptcy.


Pre-filing, individuals must complete credit counseling and
post-filing, they must complete financial budgeting. These
should have been implemented years before. They are
designed to keep people aware of their spending and keep
them on track.

There is also a change for chapter 13 filers. There is also
a new income demand. All disposable income left after
paying actual living expenses must now go into their
repayment plan.

The IRS now determines the allowed actual living expenses,
not the actual living expenses, if their income is higher
than the median income in their state.

Bankruptcy Court

If you are planning to file for bankruptcy then you will
indeed be making a trip to court. The U.S. Bankruptcy court
is a federal court and deals with all aspects of bankruptcy
law. Each of the 94 judicial districts handles bankruptcy
matters.

Each bankruptcy court houses a bankruptcy judge who is
appointed to 14 years by the U.S. court of appeals. Though
rare on occasion, regular district courts can hear and try
bankruptcy cases on the courts discretion.

Your first visit to court will most likely be brief. You
will not be seeing a judge on your first visit, but instead
a trustee of the court who will ask you questions regarding
you financial status and history.

Questions will fall along the lines of where you live, what
property you own, list of assets and liabilities and if you
have any pending lawsuits against another person.

You will also be asked if you expect to inherit cash from a
relative or other source. No creditors will be in
attendance during your chapter 7 hearing and your lawyer
will be with you the whole time.


For Chapter 13 hearings it will be the same basically. You
will endure the same questioning in addition to questions
regarding your repayment plans.

After sixty to ninety days you will be returning to court
to finish the discharge order. It is very important though
that you show up and are on time.

The court may see you in contempt and discharge your
bankruptcy case unless your attorney successfully files a
continuance. Then you will most likely have to pay your
attorney an extra filing fee on top of everything else.

Avoiding Bankruptcy

Avoiding Bankruptcy completely would be best for anyone considering the options, however in some cases, it just simply can not be corrected by any other means other than by filing for bankruptcy. One needs to really consider all other options before planning to do something such as this, because the end result could be something you may not want to have to encounter or discuss with anyone because you are somewhat labeled once you have actually had to file for bankruptcy and you all know that being labeled can really hurt you in the long run. You may not ever be able to attain a loan again and it will in fact stay in big red letters on your credit report for every potential creditor to review.

By looking into other options on correcting your debts you would have the ability in saving your own name and not doing something so major that it could create problems for you down the road. Filing bankruptcy can create many different problems, not just with your reputation but it could actually stay on your credit report for many years to come. One option that you could choose rather than filing for bankruptcy would be speaking with a credit counselor. They have the ability in helping you possibly consolidate all of your debts into just one monthly payment. This will help in preventing creditors from calling you constantly and you having to worry about sending out all of those payments every month, on time. One payment could take care of it all. You would find this to be very helpful in helping you get your financial problems under control.


So many people that become overwhelmed by debts eventually just end up avoiding those phone calls and letters from their creditors. What you need to realize is if you would simply pick up the phone or respond to the letters instead of throwing them away, in many instances they would allow you to explain your situation and then from there set up some kind of payment plan that would be more suitable for you and possibly even waive some of those dreadful late fees that may have occurred.


Some things people need to remember when they are trying to get their finances back in order is that you will need to take a look at your priority payments and decide which ones will just have to wait. If you find yourself behind on your house payment you really need to figure out how to save money in order to get that debt caught up because you do not ever want to risk losing your home. Another debt that should be a main priority would be your vehicle payments. Without your vehicles your life would be much more complicated and stressful. The credit card payments and loan payments need to be taken care of but sometimes they do have to wait. While waiting to pay these, you need to speak with a credit counselor in order to arrange a payment plan or get those bills consolidated, so payments can be made properly. Just remember, bankruptcy is not the worse thing in the world and you may find yourself having to choose to file anyway, however, try everything you can possible to keep from having to do so.

Alternatives To Bankruptcy

When you’re in a financial bind, bankruptcy is not the only

way out. There are many alternatives to bankruptcy if you

are willing to put out the time and energy. It could save

you much unnecessary hassle.

Bankruptcy is a difficult decision to make so it is best if

there is another solution out there for you.

Begin by calling your creditors. Most are willing to work

with you if you explain to them your situation. Tell them

you are considering bankruptcy.

In many cases, creditors are willing to work out a

different payment plan with you. Don’t hide from them

either. Be straightforward and open about your financial

situation.

Before filing bankruptcy, take a good long hard look at

your finances. Get organized and begin writing out a

budget. Start with your monthly income and deduct your

monthly household expenses.

Understand how you are spending your money and seek out

where you can make cutbacks. Perhaps buying groceries in

bulk, or cutting back on phone services or cable services.

Every little thing helps.

Next you will want to take a look at your credit cards. You

may be able to take the balance from one with a higher

interest to a lower interest one. Then get rid of those

high interest credit cards all together.

Stay away from paying off credit cards with credit cards.

Other things you can try are refinancing a car loan or a

mortgage. Or perhaps you have some family members or

friends who are willing to pitch in to help pay off high

rate debts and avoid bankruptcy.

But remember, this is a loan so when you are in a better

situation, do make sure to pay back those who were kind

enough to help you out.