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Bankruptcy Options

October 3, 2010 By admin Leave a Comment

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When Declaring Bankruptcy is a Good Option

Author: Jerry Work

Bankruptcy is a legal process intended to help individuals and companies who are unable to meet their debt obligations. Bankruptcy can help you get control of your financial situation and help you maintain possession of property to which creditors might have a legal claim. The process can have very negative effects on your ability to borrow money for quite a long time (up to ten years), but there are circumstances where bankruptcy might be the best option.

There are two types of bankruptcy for individuals: Chapter 7 and Chapter 13. The two types work quite differently. When filing for Chapter 7, most of your unsecured debt disappears within 90 days. However, much of your property, including your home, will be sold off, with the proceeds distributed to your creditors. Basically, anything you have that is worth much at all will be sold to pay creditors. In addition, a Chapter 7 bankruptcy stays on your credit report for ten years. So Chapter 7 bankruptcy is no laughing matter.

A Chapter 13 bankruptcy lets you keep your property. This form of bankruptcy is a debt repayment plan, rather than a debt eliminator. With Chapter 13, you generally set up a three or five year repayment plan, and the bankruptcy only stays on your credit report for seven years. If you own property that you do not wish to relinquish to creditors, Chapter 13 may be your best option. Chapter 13 is also a better option for those who are having temporary difficulties but anticipate better times ahead because it has somewhat less of a long-term impact on credit ratings.

If you do not own a lot of property or are comfortable with the idea of relinquishing your property, then Chapter 7 may be the best option. It creates the best financial circumstances, from a debt management perspective, because it erases your debt. You are no longer responsible for debt repayment. How much property you must give up depends on the laws of the state where you live. But forget about moving to a state with better consumer bankruptcy laws in order to get a better deal. If you've lived in a state for less than two years, then you must abide by the bankruptcy laws in the state where you formerly lived.

If your credit score is already ruined from multiple missed payments or from being in default with creditors, then declaring bankruptcy won't have much of a negative impact on your credit score. In fact, it might even help your credit score. This is because once your declare bankruptcy, your balances and records of unpaid debts are removed. All of those debts will be marked as being included in a bankruptcy. So even though having the bankruptcy on your credit report is very negative, it may be offset by the removal of multiple active bad debts.

Since you are basically starting from scratch, you have the opportunity to begin rebuilding your credit anew. A good way to begin that process would be by acquiring a secured credit card. After being careful to make all your payments on the secured card for a year or two, you will be in position to apply for an unsecured card and continue the process of rebuilding your credit. Eventually, after seven or ten years, the bankruptcy will slide off your credit report. If you have made timely creditor payments in the meantime, then your credit will be restored.

Article Source: http://www.articlesbase.com/credit-articles/when-declaring-bankruptcy-is-a-good-option-386936.html

About the Author

ClearOne Debt Relief is a full-service debt management company providing debt settlement services such as credit card debt relief to customers throughout the U.S.

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Bankruptcy Assistance

September 30, 2010 By admin Leave a Comment

Christian, Consumer Bankruptcy Assistance Project by JVC Photos

Professional Debt Assistance - Prevent Cash Flow Problems From Leading To Bankruptcy

Author: Matt Couch

Bankruptcy is suitable only for those who are unemployed, right? Any person who is earning lots of money in a month should not have any reason or excuse to declare bankruptcy, right? This is how most of us think when we get our first real job. We do not bother about the terms and conditions of credit cards and personal loans because we know that we will be earning lots of money in a month.

We are confident that our college education will help us earn high salary and the booming economy will take care of our investments as well. We have a very fixed financial plan in our mind and clear that we will become a millionaire before we turn 30. Do you know that there are many such persons who began in the manner described above but are contemplating bankruptcy despite earning a sizable amount per month?

All it takes is for a single credit card issuer to reduce the grace period by half without informing you in advance. Once that happens, defaulting on your credit card debt is inevitable. Once that happens, each and every service provider will start putting pressure and will start treating you like a defaulter. You may not have read about it but your credit card agreement speaks of universal default rule. This may not be fair but you have no choice but to accept it because your signature is present on the agreement.

You find it difficult to manage the collection calls from different lenders. You're worried that your credit score will be affected. You start juggling debts. Rather than diverting your income, you start incurring more debt to repay debt. You wait for that one good month where you will be disciplined with the finances and overcome all your financial problems. However, something or the other keeps on coming up. Either it is a fancy gift for your girl or a vacation for your parents or a party for your friends to maintain your status - excuses for financial indiscipline are many.

What should you do? If you have racked up a dozen credit cards and if you are struggling to make regular repayments on each one, you should employ the services of a debt consolidation company. Get a consolidation loan by using your high credit score. Make sure it is a low interest loan. Repay all your existing debts and convert multiple debt situations into a single debt issue. Once that is done, pay your repayments promptly. You will find your debts coming down and will have more motivation and justification to be financially disciplined.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

Free Debt Advice

Article Source: http://www.articlesbase.com/finance-articles/professional-debt-assistance-prevent-cash-flow-problems-from-leading-to-bankruptcy-1901042.html

About the Author

freedebtsettlementadvice.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.


http://www.freedebtsettlementadvice.com

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Bankruptcy Alternatives

August 26, 2010 By admin Leave a Comment

Plastic Handcuffs by Tampa Bay Informer

Alternatives To Bankruptcy

Author: Natalia Kobseva

As anyone who has seriously examined Chapter 7 bankruptcy protection knows all too well, filing bankruptcy may be the absolute worst thing that borrowers can do to improve their financial position. For desperate folk suddenly realizing that there is little they can do on their own to achieve debt relief, bankruptcy might seem like an attractive possibility. After all, from our earliest memories, Americans are taught to respect bankruptcy as the (for whatever reason) dignified end to debt crises. Whether playing board games or watching cartoons, we're taught that bankruptcy is just what is supposed to happen once any borrower has debts that they can no longer responsibly manage. In our culture, bankruptcy is simply expected to be the final debt solutions to personal economic strife. Even as the nature of consumer debt changes from hospital bills and department store accounts to the burdens of credit cards too easily granted and too quickly filled to their limits, bankruptcy maintains a mythic allure as an all-inclusive cleanser for financial woes.

Much as the debt protection of bankruptcy may have seemed a godsend for the generations that came before, there are now any number of new bankruptcy alternatives available for those debtors who have faced financial misfortune. More to the point, once a consumer takes time to fully analyze the Chapter 7 bankruptcy program, they may very reasonably wonder whether or not bankruptcy would be the correct choice for any debtor regardless of their own situation. Successfully filed and discharged, bankruptcy protection could indeed offer consumers new beginnings. In the best scenario, the fortunate borrowers could even start their financial lives over from ground zero, but that is only after they have suffered a harrowing ordeal that risks the utter ruination of their credit rating as well as the potential loss and seizure of any even vaguely valuable possessions.

The relief that people may feel when entering the bankruptcy program is understandable, really. Given that most borrowers seriously considering bankruptcy have already had to deal with (the sometimes hourly) harassment from bill collection agencies and watch their mailbox fill to bursting with past due notices from credit card companies, it is not that surprising that the average consumer – struggling to pay their credit cards and other debts – would jump at the chance to have a specialist take over their affairs. The very idea that debtors would no longer be held responsible for their actions alone comes as a sort of salvation that impels otherwise cautious heads of household to essentially hand over the reins of their economic futures. Certainly, the bankruptcy lawyers charging more and more outrageous fees are not going to argue against what may as well be thought of as their own product. Despite the amount of time the lawyers may spend with their clients (they are paid by the hour, as you probably know), very few attorneys will spend even five minutes counseling borrowers about exactly what they are getting themselves into. Eliminating unsecured debts (credit cards, primarily, as these things tend to go) should be a priority, but wise debtors must recognize the limitations of bankruptcy protection under the current statutes. Above all else, they should know not to trust their attorneys for advice beyond their specialty.

To learn more about Federal Debt Relief Program and how to get started, please visit DebtRelief.bz

Article Source: http://www.articlesbase.com/advertising-articles/alternatives-to-bankruptcy-723421.html

About the Author

Noted Financial Author

Filed Under: Bankruptcy information Tagged With: , , , , , , , , , , , , ,

Bankruptcy Alternative

August 25, 2010 By admin Leave a Comment

Plastic Handcuffs by Tampa Bay Informer

Alternatives To Bankruptcy

Author: Natalia Kobseva

As anyone who has seriously examined Chapter 7 bankruptcy protection knows all too well, filing bankruptcy may be the absolute worst thing that borrowers can do to improve their financial position. For desperate folk suddenly realizing that there is little they can do on their own to achieve debt relief, bankruptcy might seem like an attractive possibility. After all, from our earliest memories, Americans are taught to respect bankruptcy as the (for whatever reason) dignified end to debt crises. Whether playing board games or watching cartoons, we're taught that bankruptcy is just what is supposed to happen once any borrower has debts that they can no longer responsibly manage. In our culture, bankruptcy is simply expected to be the final debt solutions to personal economic strife. Even as the nature of consumer debt changes from hospital bills and department store accounts to the burdens of credit cards too easily granted and too quickly filled to their limits, bankruptcy maintains a mythic allure as an all-inclusive cleanser for financial woes.

Much as the debt protection of bankruptcy may have seemed a godsend for the generations that came before, there are now any number of new bankruptcy alternatives available for those debtors who have faced financial misfortune. More to the point, once a consumer takes time to fully analyze the Chapter 7 bankruptcy program, they may very reasonably wonder whether or not bankruptcy would be the correct choice for any debtor regardless of their own situation. Successfully filed and discharged, bankruptcy protection could indeed offer consumers new beginnings. In the best scenario, the fortunate borrowers could even start their financial lives over from ground zero, but that is only after they have suffered a harrowing ordeal that risks the utter ruination of their credit rating as well as the potential loss and seizure of any even vaguely valuable possessions.

The relief that people may feel when entering the bankruptcy program is understandable, really. Given that most borrowers seriously considering bankruptcy have already had to deal with (the sometimes hourly) harassment from bill collection agencies and watch their mailbox fill to bursting with past due notices from credit card companies, it is not that surprising that the average consumer – struggling to pay their credit cards and other debts – would jump at the chance to have a specialist take over their affairs. The very idea that debtors would no longer be held responsible for their actions alone comes as a sort of salvation that impels otherwise cautious heads of household to essentially hand over the reins of their economic futures. Certainly, the bankruptcy lawyers charging more and more outrageous fees are not going to argue against what may as well be thought of as their own product. Despite the amount of time the lawyers may spend with their clients (they are paid by the hour, as you probably know), very few attorneys will spend even five minutes counseling borrowers about exactly what they are getting themselves into. Eliminating unsecured debts (credit cards, primarily, as these things tend to go) should be a priority, but wise debtors must recognize the limitations of bankruptcy protection under the current statutes. Above all else, they should know not to trust their attorneys for advice beyond their specialty.

To learn more about Federal Debt Relief Program and how to get started, please visit DebtRelief.bz

Article Source: http://www.articlesbase.com/advertising-articles/alternatives-to-bankruptcy-723421.html

About the Author

Noted Financial Author

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Individual Bankruptcy Regulations

August 17, 2010 By admin 10 Comments
Los Angeles attorneys ...

Individual Voluntary Arrangement- A Bankruptcy Alternative

Author: Benedict Smythe

Many factors could have caused a person to be overwhelmed by huge debts, debts that accumulated and became impossibly hard to pay with the current income. This hopeless financial situation could lead people to take bankruptcy as an option. Bankruptcy is one of the solutions a financially distressed individual would contemplate to take. When financial troubles are causing you to lose sleep, when creditors are harassing you, when you have sold most of your properties and when huge debts threaten to engulf you, your final and last recourse would be to file for bankruptcy.

Bankruptcy would seem to be the be-all and end-all to save a person from all financial difficulties. Certainly, bankruptcy will give a person the chance to start anew and to have a clean slate as far as debts is concerned but it also carries with it far reaching and long lasting effects. A bankruptcy will stay in your credit records for at least 10 years and the requirement to publish all bankruptcy proceedings in the London Gazette, would publicize to all and sundry your financial misfortunes.

Before opting for bankruptcy to solve a financial crisis, a debtor should take a good look at the individual voluntary arrangement option. This bankruptcy alternative would need the help of an authorized insolvency practitioner who is usually a lawyer or an accountant and who has the expertise in dealing with financial and debt problems. Together with the debtor, the insolvency practitioner will work out an arrangement or a proposed schedule of payment to be sent to the creditors.

The court, upon application will issue an "interim order". This order will have the effect of preventing any creditor from filing any bankruptcy proceedings against the debtor without the permission of the court. An insolvency practitioner plays a very important role in an individual voluntary arrangement petition. Acting on behalf of the debtor, the insolvency practitioner will meet with the creditors to discuss the terms of the individual voluntary arrangement.

A meeting between the debtor and the creditors will be arranged by the insolvency practitioner. The presence of all creditors in this meeting is very important. Aside from the discussion and negotiations, the acceptance of the proposal will be voted on. The terms of the proposal will not be binding to the creditors who are not present and who were not able to vote. After acceptance of the proposal, the insolvency practitioner will still have the responsibility of supervising the debtor to make sure that all monthly payments are paid.

In an IVA, the debtor can choose what to do with his assets. He may choose to sell all properties or retain some assets. This is not so in bankruptcy where liquidation of all the debtors assets is in the hands of the appointed trustee.

Bankruptcy or individual voluntary arrangement can be avoided if people would be more disciplined when it comes to financial matters. It is a known fact that a large percentage of debts is not caused by poor income but rather by unwise and indiscriminate spending.

Article Source: http://www.articlesbase.com/finance-articles/individual-voluntary-arrangement-a-bankruptcy-alternative-267019.html

About the Author
If you face debt problems then Wilson Field can help with a variety of debt advice including an IVA and Bankruptcy.



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