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Published May 10, 2019

4 Useful Benefits Offered By Debt Consolidation

If you’ve run up a significant amount of credit card debt and other bills, then debt consolidation might help you come out of the crisis. It involves combining all your high-interest unsecured debts into a single monthly payment. A debt consolidation program often proves to be a successful technique to fight debt problems. Some useful benefits of consolidation are given below:

Debt Consolidation

1) Avoid bankruptcy

Debt consolidation helps you avoid filing bankruptcy. Bankruptcy remains on your credit report for 10 years and adversely affects your ability to get credit.

2) Restore your credit

Your credit score can go down as a result of delayed payments. Debt consolidation can help you boost your credit score. An improved score helps you become eligible for reasonable interest rates on home loans, car loans and other types of credit. When you’ve completely paid off all your debts through consolidation, your credit score would gradually go up.

3) Handling your payments becomes simpler

This is the most important benefit of debt consolidation. Rather than making multiple payments to different creditors, you just have to manage a single payment every month. Reduced interest rates lower your monthly consolidated payment so that you can manage it easily.

4) Faster debt payoff

If you try to pay off your high-interest debts without debt consolidation, it would seem to be an almost impossible task and take a lot of time. The consolidation company negotiates with your creditors to reduce your interest rate. When they are successful in doing it, your monthly payments also get reduced. The greater part of your monthly payments is used to pay down the principal balance of your loans. You can then pay off your balances faster.

Debt consolidation works as a helpful solution to eliminate your debt burden and benefits you in many ways.…

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Published April 30, 2019

Your Basic Guide To understanding Bankruptcy

Guide To understanding Bankruptcy

If you are considering filing for bankruptcy, it is in your best interest to learn everything there is about the process. This way you can be sure you are make the best choice for you and your future. This article is going to give you an overview of bankruptcy and things you need to consider before filing. Keep in mind talking to a local bankruptcy attorney is highly recommended for specific question regarding your personal situation.

Is bankruptcy right for you?

This is the first question you need to consider; everyone’s situation is unique. Bankruptcy can give you a fresh start and take away the stresses of overwhelming debt. But it isn’t a cure all and does have lengthy side effects. After filing for bankruptcy it will be 7 to 10 years before it is off your credit and you will have to wait 3 years to be approved for any kind of loan. Also you need to learn from your mistakes, yes bankruptcy will get rid of your debt, but if you don’t learn from the mistake, you may find yourself in the same situation a few years later.

Before Filing for Bankruptcy

It is important to learn about the bankruptcy process, the so-called pros and cons, before you actually file. Spending time doing online research, join bankruptcy forums to hear about peoples different experiences. Look into alternative bankruptcy options and talk to debt consolidators. Learn about what life after bankruptcy will be like. Bankruptcy can be considered as a debt relief option, but it should be considered very carefully before you decide on taking it.

Filing For Bankruptcy

You should take it account how much overall debt you have, versus your yearly take home income. If your debt is significantly more than you can handle and will take you an unreasonable amount of time to pay off, filing now may be the right option. Also if you have tried debt relief programs and they have not been able to help, it is time to talk to a bankruptcy lawyer and see what they can do for you.

When you file for bankruptcy, and you receive a discharge you debt will be taken care of and you won’t have to pay back most creditors. After you file for bankruptcy it can take seven years for it to come off your credit report.

Types of Bankruptcy

If you come to the conclusion that bankruptcy is the best solution for your debt problems, then it is time to start looking into the different types of options. In most individual cases, a chapter 7 filing is the most common “consumer” bankruptcy. With chapter 7 you liquidate assets to repay debtors.

Chapter 13 is another form that may work, this is known as the “reorganization” bankruptcy. It allows indebted individuals to reorganize their debts in an attempt to repay creditors. You must show a plan to repay them and have proof of a steady income.

Finally keep in mind that with bankruptcy, whichever option you choose will have repercussions. Do your research and talk to knowledgeable people in the field, before filing. Proper research, planning and analysis are necessary to find the correct answer for you personal situation.…

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Published March 13, 2019

Advantages To Filing Chapter 7 Bankruptcy

There are advantages to filing chapter 7, this is why it is most consumers first choice when thinking about bankruptcy. Chapter 7 bankruptcy can give you a fresh start and clean slate when it comes to debt and overcoming financial burdens. Chapter 7 was so popular for consumers that the bankruptcy laws had to change to make it slightly harder for people to get approved for it. Working with a local bankruptcy attorney, will give you a better chance of getting approved for it.

Millions of people use chapter 7 bankruptcies because it can give them relief from overwhelming debt. Chapter 7 bankruptcy can help wipe away unsecured debts, like medical bills, credit cards and unsecured personal loans.

Advantages for Chapter 7 bankruptcy

-All of your unsecured debt can be wiped away in 4 to 6 months.

-As soon as your petition for chapter 7 bankruptcy you will receive and automatic stay, which means you, will no longer receive harassing phone calls and letters from creditors.

– It is the fastest way to receive a fresh financial start, when exploring bankruptcy options.

Who Can File for Chapter 7

-You must have a official or legal residence in the US

-Have a Place of business in the US or own property in US

-A non US Citizen, can file a bankruptcy petition as long as he or she satisfies at least one of the above requirements

-You must not have been granted a Chapter 7 discharge within the last six years or completed a chapter 13 plan. If you are in the process of filing a chapter 13 you can cover it to chapter 7.

-You must not have had a bankruptcy filing dismissed in the last 180 days.

-Your current monthly income (average income over the last six months before you file) is less than or equal to the median. If it is more you must take the means test.

-It has been over 8 years since you have previously filed and qualified for Bankruptcy.

Bankruptcy Law Changes to look at when trying to get approved for Chapter 7
Under the old law most people would file bankruptcy under Chapter 7. The new law prohibits people in a higher income level from filing under chapter 7. Your current monthly income level measured against the median income for your household of your size in your state will come into play here.

Your income:

Less than or equal to the median-You can file for bankruptcy.
More than the median-you must pass the means test

MEANS TEST

The means test is to figure out your disposable income. Certain allowable expenses that are determined by IRS guidelines are subtracted from your income. The value of that number will give you your disposable income.

3 things to look at when you arrive at your disposable income number

-If it is less the $6000 over the next five years you will be qualified for Chapter 7.

-If it is greater than $10,000, you can only file, you can demonstrate special circumstances.

-If you are between $6,000 and $10,000 a second calculation is done. This one will compare your disposable income over the next five years to a percentage of your unsecured debt. (This will show if any repayment to your creditors is possible) If it is less than 25% of your unsecured, non-priority debts, you will qualify.…

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Published February 3, 2019

How To File For Chapter 13 Bankruptcy

Chapter 13 has now become the more popular bankruptcy to file for. This is because it is sometime easy to be approved for then, chapter 7. Chapter 13 is a good bankruptcy to consider if you have property or assets you would like to keep. It is also the type you will file for if you want to stop foreclosure on your home.

Bankruptcy

This article is to give you a general idea of how to file chapter 13 bankruptcy. Keep in mind that different states may have rules and regulations for filing so talking to bankruptcy attorney in your state is important.

Rules

1. You must attend an approved credit counseling class under the United State Trustee’s Office. You cannot do anything else until you get a certificate that says you have taken the class. A lot of people fret over having to go to this class, but actually it should be a good learning experience and help keep you out of future debt.

2. Below are the items you will want to file with court

* The certificate for the credit counseling class
* Federal tax return for previous year
* list of assets and liabilities
* current income and expenditures
* contracts of un-expired leases
* statement of financial affairs
* a debt repayment plan (this is what you will accomplish in credit counseling class)
* Evidence of payment from employers
* statement of monthly net income and any anticipate increase
* Record of any interest that you may have in federal or state qualified education or tuition accounts.

3. Below are the things you must provide information to the case trustee:

* A copy of tax return for most recent tax year
* Tax returns filed during the case
* Tax returns for prior years that had not been filed when case began

Bankruptcy Forms:

* A list of all creditors and the amounts and nature of their claims
* The source, amount and frequency of your income
* A list of all your property
* Detailed list of monthly living expenses

4. When the filing is done you will be appointed an impartial trustee to administer the case.

5. After 20 to 50 days after you file the your trustee will hold a meeting of creditors. This is where you meet with all you creditors and answer any questions they may ask.

6. Unsecured creditors will file their claims with the court within 90 days of the creditors meeting

7. After the meeting you, the trustee and creditors will go to court to hear the repayment plan.

8. The court will then decide if your bankruptcy is approved.

If your do receive a bankruptcy discharge this is a good time to start fresh and stay on top of your payments. Make sure if you are filing for Chapter 13, you can keep up with the payments, take a class or read up on how to set up a monthly budget for yourself and then follow it.…

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Published January 21, 2019

How To Get Life On Track After Bankruptcy

If you filed for bankruptcy and received a discharge, the stress is now behind you, but the work will still continue. Filing for bankruptcy is to give a consumer a fresh start, with out the burden of overwhelming debt. This is a change to get your life on track and start working hard to keep it that way.

Bankruptcy

If you filed for bankruptcy a lot of people may have put fear in you that your credit will be ruined forever. This is just not true and even after filing bankruptcy you can get approved for a loan in three years. The first few years coming out of a bankruptcy are the most important though, for rebuilding your credit and finances. Likely before bankruptcy, you were struggling, with your money and paying your bills on time. After bankruptcy, you need to learn how to manage you money and not get back in debt.

Credit

Rebuilding your credit after bankruptcy is the most important step that you need to work on consistently through out the next few years. You may want to work with someone who is a money management expert, so you can learn how to budget your spending. Being money responsible means keep track of your spending, you need to know where you money is going. This means writing things down, going over receipts every day, look at everything at the end of the month and find out exactly how your spending your money.

After bankruptcy you want to keep up on all your payments, for utility companies, rent, etc. Do not miss a payment and do not pay anything late, this will hurt your credit rating and in a few years when you might want a loan, you will not get approved. You want to spend time trying to raise our credit score and remember and everything takes time.

Banks will have secured credit cards you can get approved for after bankruptcy, where deposits are made by you to cover the line of credit. Be careful though some credit cards come with very high interest rates. If you use these cards with no self-control you will likely find yourself bank in financial trouble. If you must use a credit card, then make sure you pay off the whole amount, before any interest is acquired. This is a good way to build up your credit score, but do not start to early with these credit cards and only use them once a month for something small, no more than a fifty-dollar deposit. That way you can be sure to pay it off each month.

The one thing you can look forward after bankruptcy is loosing all the stress and financial worries that were probably keeping you up at night. The nice thing about starting with a clean slate and now worries is you can concentrate on other things, such as work and your health. It is important to realize how you got into so much credit card debt and learn from the mistakes so as not to repeat them.…

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