Author: Fred Appleton

If you’re in debt in Australia and are considering bankruptcy, then a concern might be the so called ‘Stigma of Bankruptcy’. These days it’s really hardly an issue.

Also, bankruptcy is not a last resort, to be avoided at all costs.

If a person’s got what to them is overwhelming debt, and they’ve tried to get on top of it, but can’t, then declaring themselves bankrupt is a very practicable and sensible step to take. Mostly, it enables a person to get out of debt and so give themselves the chance to start again, to get back on their feet, and so be able to get on with their lives.

The ‘Stigma of Bankruptcy’ is an old fashioned term. It probably was to be avoided at all costs back in days gone by, but its rarely an issue ttoday.

Back in the ‘Stigma of Bankruptcy’ days banks in Australia were strict and conservative with their lending practices. You at least had to have a face to face interview with a Loans Officer.

In those days people who went bankrupt were mostly in business. It was pretty obvious when a business suddenly closed down that something had happened. Everybody knew, people talked, the shame of the ‘Stigma of Bankruptcy’ hung low in the air.

These days the banks have changed things. Loans are made over the internet and telephone. Pre approved offers of loans come in the post. The lenders have simply changed the rules and the risks.

Ordinary people now go bankrupt. In the year ended 30th June 2007 there were 25,242 bankruptcies in Australia, and of that number only 4,821 of them were business related bankruptcies. The rest were ordinary people.

Over the last 5 years to 30th June 2007 111,176 people have gone bankrupt ( www.itsa.gov.au and there click About us, then click Statistics)

Some of these 111,176 people may live in your street. They may sit next to on the bus or tram or train going to work, they may be some of the people that you know at work, and through work. If you knew, you’d be surprised to find who has gone bankrupt.

Chances are that you’d know more than one of them. Did you first suspect that they may have gone bankrupt because you noticed the ‘Stigma of Bankruptcy’?

Also, of these 111,176 who were declared bankrupt in those 5 years, did you read about any of them in the newspapers? Every day now just check the Public Notices section and you’ll see what I mean. Bankruptcy is very private, the newspapers will not be the source of a person’s ‘Stigma of Bankruptcy’ fears.

You wont have seen it on television either, unless it was somebody high profile, and newsworthy.

The people who will know that you’ve gone bankrupt are the people that you owe the money too. Your bankruptcy trustee will tell them, you don’t have to.

Your local bank may not be told. The return address for credit card statements are a GPO box somewhere?

If a person goes bankrupt I think that the real ‘Stigma of Bankruptcy’ is with the people owed the money. It now seems that it’s the banks etc who don’t want to be caught with the stigma of having to report to their shareholders and so to the public at large, including their competitors and peers, that the management has lost some of it’s shareholders’ money by lending it to people who couldn’t pay it back.

If a person goes bankrupt, then unless they’ve got something of value that their bankruptcy trustee would be allowed to sell (and there are some restrictions on a trustee here as there are a lot of things that he can’t touch) then the creditors mostly won’t get paid much, if anything.

If a person goes bankrupt, then for the next 3 years they can earn a minimum weekly net take home pay of 8.80 (current at 1st January 2008) that’s after tax and child support, and if applicable, business expenses, before the trustee can claim any of this income.

The 8.80 base figure increases is adjusted twice a year and is more if the bankrupt has dependants. If the bankrupt earns more than the base amounts, (known as the Threshhold) , then they can keep half of whatever amount goes over the Threshhold amount, as well as the minimum 8.80 or whatever it is that applies to them.

A bankrupt’s weekly allowable income is not likely to cause any stress or stigma during the (usual) 3 years of bankruptcy.

The ‘Stigma of Bankruptcy’ will be felt by a bankrupt’s creditors, the banks and others.

As a person falls behind in paying their loans and credit cards and other debts, after a few months they start to look a bit shaky from a debt collection point of view.

A widespread practice now is that some cases the creditors on-sell these possible bad debts to companies willing to buy them, at a big big discount on what is owed. Its then up to the buyer to collect payment, and as far as I am aware, when they do they keep it all.

In this way it seems that the banks etc don’t have to report the sale of these debts at a loss as bad debts. Saves face, saves a bit of Stigma.

It’s the buyers of these debts, who are now second hand debt salesmen, who have to cope with a loss if they don’t get paid because the debtor goes bankrupt.

So that they don’t lose of their money, and carry the stigma associated with knowing that their gamble has lost, the debt collection tactics of these second hand debt salesmen can be very aggressive.

They wrongly claim that bankruptcy is the last resort, and they seem to rabbit on and on a bit about at the ‘Stigma of Bankruptcy’. But it’s hardly an issue.

A person is generally bankrupt for 3 years, and their credit rating is damaged for 7 years. Overwhelmingly, for most people, going bankrupt does not affect their employment in any way.

Overwhelmingly, being bankrupt does not mean that you cannot travel overseas in the 3 year period of your bankruptcy. You simply have to seek the written permission of your bankruptcy trustee. Again, in modern times, very little stigma is suffered by the bankrupt.

If you’ve tried and tried but for some reason you just can’t pay your debts, then through bankruptcy, the government has given everybody the chance to get out of debt, to start again, to get back on their feet, and so be able to get on with their lives.

The ‘Stigma of Bankruptcy’ is hardly an issue.

Article Source: http://www.articlesbase.com/debt-consolidation-articles/the-so-called-stigma-of-bankruptcy-313761.html

About the Author

Fred Appleton is a retired former Chartered Accountant. For more than 10 years Fred has specialised in helping people understand and deal with bankruptcy, but from the point of view of the person owing the money. Having been through bankruptcy, Fred knows first hand about the issues and challenges. Since starting his business he has helped thousands of people sort out their debt problems. Fred may be able to help you stop the harassment and telephone calls. From what people have told Fred, over the years, he is certain that bankruptcy can save lives and marriages too. Fred Appleton - Bankruptcy saves lives

Loans and Credit Cards. Bankruptcy On the Up

Author: Michael Challiner

New figures have been released showing that in 2005, 67,800 people were declared bankrupt. In the second quarter of 2006 alone, around 26,000 people became insolvent in England and Wales, a rise of 66% on last year. The way it's going, it looks like the number of personal insolvencies in 2006 will top the 100,000 mark.
So why has bankruptcy become such big business? The main reason is because so many people live beyond their means. Dubbed the ‘spend it like Beckham culture' - getting credit is far easier than it used to be, and many people take out a mortgage, loans and credit cards - using them to fund a lifestyle they can't realistically afford. When they get behind with the repayments, many people bury their head in the sand rather than face up to their problems, and finish up by having their home repossessed and by being made bankrupt.
Some financial experts also think that the rise is partly due to insolvency becoming an easy option. ‘Bankruptcy' is no longer a dirty word, and recent changes in legislation mean that many bankrupts could find themselves discharged within a year, whereas it used to be two or three years. Also, it is no longer a requirement for bankrupts to have to sell their homes, possibly helped by the upturn in the housing market, which has enabled some bankrupts to be in positive equity despite their inability to pay back their debts.
The Government's Insolvency Service stresses that bankruptcy is not an easy ride, and they would be putting pressure on bankrupts to discharge their debts. In particular, bankrupts deemed to have ‘recklessly' gotten into debt would be pursued for the losses, with the help of Bankruptcy Restriction Orders (BROs). BROs ensure that bankrupts under the restriction order would not be able to get credit without disclosing their status, start trading under a new name, or hold a company directorship, up to a maximum time period of 15 years. The Insolvency Service estimated that around 10% of bankrupts would also have a BRO to contend with.

The Liberal Democrats believe that the debt problems in the UK could be helped if people knew where to look for help when they need it. For example, there are a number of free and confidential Debt advice lines that can provide excellent advice. They also suggest that the problem could be attacked at source, for example, lenders should be more transparent about the costs and implications of taking out a credit card and making only the minimum repayments. They also suggest that money management skills should be taught at school.

The problem is not going away for the meantime, that's for certain. High street banks recently announced that their bad debts are already soaring – Lloyds TSB and Egg have both made announcements – and the total British unsecured debt is estimated to be £191 billion. That equates to £3,250 per person in the UK.

By educating people about debt - knowing when to stop buying, and when to start worrying - bankruptcies could be tackled effectively. But for now, they're not going away - bankruptcy is a culture that for the time being, is here to stay.

Call the National Debtline on 0808 808 4000 or visit their website at www.nationaldebtline.co.uk for free and impartial advice on managing your money.

Article Source: http://www.articlesbase.com/loans-articles/loans-and-credit-cards-bankruptcy-on-the-up-47916.html

About the Author

Loan Locomotive – great articles on loans

There are some instances where you will need to apply for a personal loan. This is usually not that much of a problem. This situation becomes changed if you have gone through a bankruptcy action. At this point you are considered as being a bad risk and you might have difficulties with receiving a personal loan. There are luckily enough companies who will provide you with bankruptcy personal loans.

These bankruptcy personal loans are priced at higher interest rates and you will need to work very hard to pay off this loan. In some instances you will have to sign legal documents that state that you will be held liable if you can

Similar to an LLC, when corporations liquidate under chapter 7 of the U.S. bankruptcy law, it includes only the business assets. The owner is totally exempt from personal liability in regards to any corporate debt, excluding the loss of value of any shares. Creditors are repaid from the proceeds of liquidation. Before equity receives anything, debts must be paid in full.

Chapter 11 of the U.S. bankruptcy law states that all assets are kept by any organization that reorganizes and continues operation, while most creditors receive partial payment. Investment decisions become less efficient in reorganization because equity over-invests in risky projects

In corporate bankruptcy the goal is to obtain enough repayment to creditors that lenders will continue to lend, at least to other borrowers. Inefficient investment decisions made by equity managers in prioritizing decisions, limit the company

For those who have already made the difficult decision that filing for bankruptcy really is their only way out of their desperate financial problems, the decision making is not yet finished! Once you have already decided that this is the way to go, you then have the difficult decision of whether or not, in this time of severe financial concerns, you want to pay out a further expense in order to hire a bankruptcy lawyer.

While it is very tempting to think that the reason for bankruptcy is financial problems and thus spending more on a bankruptcy lawyer is a bad idea, there are a number of factors to consider to the contrary. Firstly, while you have decided yourself that this is what you want to do, it is always advisable to discuss with a lawyer to see whether you have even made the right decision in the first place. An experienced bankruptcy lawyer, who will have seen a good many cases, is in a great position to be able to tell you exactly what it will entail, the consequences you can face and the plus sides.

In addition to that, bankruptcy laws were reformed by congress back in 2005 and have, since then, been notoriously difficult to contend with. In fact, even legal professionals have a great deal of trouble in even understanding the reforms that were made to the bankruptcy code and, as such, an individual with no legal knowledge faces an almost impossible task. And as well as understanding the legalities, there are certain hoops you have to jump through in order to be able to file. A good bankruptcy lawyer will make a very tough situation a whole lot simpler and less complicated for you. So yes, it might be expensive. But consider it a necessary expense.

Want to know how to manage your debt without losing control? Gain insights on essential information on how to get Bankruptcy Lawyers. To get the facts on bankruptcy, simply Click Here

President Bush in April signed into law The Bankruptcy Abuse and Consumer Protection Act. This bill promises many changes to law, and will make it more difficult for the average person in financial trouble to have debts removed with bankruptcy. Recent social and economic changes indicate that those considering a bankruptcy should do so now, as the queue is getting longer.

It will be now be harder to file under Chapter 7 of the code, which allows the courts to wave consumer debt and give the debtor a new start. Filings posted will be tested and those who have a decent income it seems will have to file under a more strenuous Chapter 13, which demands repayment by installments and the assistance of a lawyer. Now looming, bankruptcy filings are not only higher than they were previously, but are also higher than expected. Across the country, filings are substantially higher than last year, and some bankruptcy practitioners say that their business has increased dramatically.

To make it more confusing is another law that requires credit card companies to establish a payment schedule that permits consumers to repay debts in amended installments. Since early year, most credit card providers have doubled their minimum payments. An average person with say $12,000 in credit card debt will have approximate monthly payment increases from between $150 to $450, an increase most people can ill afford.

This increase in bankruptcy filings has overwhelmed bankruptcy lawyers, who face a burden of being liable for false information filed by clients once the new law takes effect. Certainly an unwelcome change. This additional liability, together with the additional tasks, has prompted many lawyers to raise fees substantially over the same time as last year.

What does this mean for bad debt? From here on, bankruptcy filings will be more confusing, complicated and costly. The system is already overloaded with bankruptcy cases. If you suspect you're in the bankruptcy category, you should move on it now. Waiting even another day could be too late.

What You Don't Want to Know About Bad Meetings

Bad meetings are a cultural malady that senior executives pass on to new employees.

Long pointless meetings are useful in that they keep incompetent people from interfering with those who are working.

An employee who needs permission to buy a box of paperclips can spend tens of thousands of dollars worth of employee time on bad meetings.

Many people attempt to save time by Not planning. This false short cut guarantees that everyone will spend more time later.

Unstructured spontaneity leads to serendipity, which (in business) leads to bankruptcy.

Meetings are a magnetic opiate that keeps people from the tasks they were hired to perform.

The main activity in many meetings consists of simple chit chat. If it's an important meeting, then this becomes sincere chit chat.

A meeting without an agenda is like a journey without a map.

A teleconference without an agenda is like a journey without a map, in the dark.

Most meetings are social street lamps attracting the unproductive moths in an organization.

People fail to prepare an agenda for two reasons. They think they

Are you contemplating on filing for bankruptcy? Do you know that by law you are expected to go for credit counseling program? Then I will have you know that sometimes people get bad counseling that further put them into more problems. Hence there are some rules that govern credit counseling and these you can't afford not to know.

Do you want to avoid the pitfalls most debtors fall to? Then read this: you must complete your pre-bankruptcy credit counseling program that spans for one hundred and eighty days before filing for bankruptcy. Failure to complete this session within the stipulated period will result to the bankruptcy court dismissing your petition.

Are you attending a credit counseling program? Then I urge you to go all the way and attend every session without skipping any. This aspect is very essential because a bankruptcy court can dismiss your petition for just missing even an hour's session, and a court's dismissal normally mean you are on your own. This is one trap you must not fall into.

When you are filing for bankruptcy you must have with you a proof to show that you have completed the mandatory credit counseling program. The proof of your completion of your credit counseling should be handed to you within 24 hours after completion so you don't have any reasons not to have it.

Nowadays it is not uncommon to find people seeking for credit counseling. This is because lots of consumers usual discover they are in deep financial mess than they can help. For this reason they seek for help on the best way to go out of the quagmire of bankruptcy.

You might be indecisive about the credit counseling service you want to counsel you. Why not consider using the service of a Christian credit counseling services. You stand to gain lots of things which ordinarily other counseling outfits might not offer you. Learn more about the latest at MegaSafe Money which helps you keep your money safe.

The Christian credit counseling service has a competent program of debt management. With this program they bargain with your creditors and aid you to pay out the debt far less than what you owe your creditors. With this program they can help you gain a reduced interest rate as well as help reduce the payment of late fees.

Are you having financial problems? Do you want to file for bankruptcy? Then it is possible you can't pay for the services of a credit counselor. A Christian credit counseling service is what you need. Normally the agency offers free service for people like you.

Some people usually resort to picking a Christian credit counseling service due to their faith. This is because they always have the advantage of having their tithing worked into their budget with a good financial plan that they will learn from and protect them from experiencing similar financial problems in future.

As a consumer if you want to take control of your debts then you should use a Christian credit counseling service. The moment you do this you have made the smartest move that will see you conquering your debts and living a financial stress free life.

Each type of bankruptcy alternative should be investigated before filing for bankruptcy protection. Although bankruptcy can cease creditor harassment and halt foreclosure proceedings, debtors are required to repay a portion of their debts under Chapter 13 unless they are poverty-stricken.

Conduct research to determine the best type of bankruptcy alternative suited for your needs. Many options exist including debt consolidation, debt settlement, credit counseling and budgeting. Each offers advantages and disadvantages.

Budgeting is the most under-rated and under-utilized bankruptcy alternative. However, this simple technique is the most effective way to avoid bankruptcy and costs nothing to implement. Many Americans live paycheck to paycheck and pray no unexpected expenses or emergencies arise. Although some people simply do not earn sufficient income to meet monthly expenses, most people are in financial turmoil because they do not pay attention to where they spend their money.

A simple, efficient way to monitor spending habits is to carry a notepad and pen and record every penny spent. From the morning latte and fast food lunch to the tank of gas and cart of groceries; every expense should be accounted for. This simple procedure can swiftly reveal frivolous spending.

Budgeting requires self-discipline and the desire to stick to the plan. In order to succeed, you must thoroughly review finances and spending habits and create a get-out-of-debt plan. An abundance of information and budgeting tips can be found via the Internet and they don't cost a dime.

Debt consolidation is a popular bankruptcy alternative. Debt consolidation loans are usually reserved for homeowners. However, some banks provide debt consolidation loans to consumers with good credit or those with a qualified co-signer.

Debt consolidation requires homeowners to refinance their home mortgage and transfer outstanding debts into a new loan. Borrowers can obtain cash from accrued equity and use it to pay off credit cards and outstanding debts.

Obtaining a home equity loan is not without risk. Careful consideration should be given to this type of bankruptcy alternative. Borrowers who become delinquent on mortgage loans place their home at risk for foreclosure.

Home equity loans are paid over a period of 10 to 15 years. Debtors end up paying additional interest over an extended period of time. It is crucial to calculate the actual cost of debt consolidation before placing your home at risk to repay creditors.

Debt settlement can be a good option for individuals who owe $10,000 or more in unsecured debt. This bankruptcy alternative involves negotiating with creditors to reduce interest rates or loan balances. Debtors can negotiate directly with their creditors or use the services of a professional debt settlement company.

Credit counseling is an easy and affordable bankruptcy alternative for people who do not have a good grasp on money management. Many people who struggle with finances have never been taught how to handle money or create a household budget. Credit counselors provide financial education and money-saving resources. Some credit counseling organizations also assist with creditor negotiations.

Bankruptcy has far-reaching effects that can haunt you for a decade. Take time to explore available options or consult with professionals. In today's economy, your credit score is more important than ever. Do what you can to improve and protect it.

Bankruptcy is a scary word. Although bankruptcy provides debt relief, it also conjures up images of losing your home, no hope of rebuilding credit, and other unpleasant thoughts.

Let

The economy has taken a big dive over the past year and it caught a lot of people off guard owing on debts while their income dropped. For people with jobs in businesses that are vulnerable to recession such as construction, real estate or car sales, the effects have been more profound and immediate.

Bankruptcy is one option that many people consider but it should always be a last resort, because it