Economics Finance

If you have reached a point where your finances are spiraling out of control and you can simply not afford to repay debts you owe within three years and even with significant cut backs and changes to your spending, then you are most likely in a situation where you are considering the possibility of declaring bankruptcy. And if that does apply to you, then you are probably wondering just what are the effects of declaring personal bankruptcy? What will the consequences be?

Well, first of all, take comfort from the fact that you are not alone in considering bankruptcy. And also, bear in mind that it is a legitimate means of getting a fresh financial start for those with no other alternative. But the effect on your credit rating will be negative. Bankruptcy is considered the ultimate admission, in many ways, of an inability to manage one’s finances. It shows up on your credit file for ten years. During this time you will find it terribly difficult to obtain credit and even in situations where you are able to get credit, you will face extremely high interest rates are you will be deemed a high risk borrower. You can, however, with patience, sensible spending and discipline, rebuild your credit. Continue reading ‘Effects of Declaring Personal Bankruptcy That Requires Careful Consideration’ »

If you are at a point where you are considering the possibility of declaring yourself bankrupt as a last resort to deal with debt problems, then it is probably fair to assume that the last thing in the world you want right now is another bill. For this reason, a number of people look to attempting a do it yourself bankruptcy, that is to say, they seek to go it alone without the assistance of a lawyer.

But let’s get straight to the point. A do it yourself bankruptcy is NOT feasible.

You might have heard people talking about how they went through a do it yourself bankruptcy successfully but the chances are that this was before 2005. Continue reading ‘If You Are Considering a Do It Yourself Bankruptcy, Read This First!’ »

The declaration of bankruptcy under Chapter 7 discharges the bankrupt person from honouring all debts. But under Chapter 13 it is not so. The debts are required to be paid within a fixed time frame and it is done under court supervision.

A bankrupt person under Chapter 13 bankruptcy can obtain a bankruptcy equity home loan even though he may not be an ideal client for a lender. A sub-prime lender will refinance your home with a substantial amount where it would normally be difficult to have access to a mortgage in a conventional manner. Those who have bad credit ratings benefit from large amounts of money in the form of loans from these sub-prime lenders who are mostly interested in the property rather than the bad credit, although they may require to know your capacity to repay. The lender charges a high rate of interest on these loans as his service is also charged for. Continue reading ‘How to Get a Bankruptcy Equity Home Loan’ »

One thing I’ve never understood is why some people insist on going it alone. No matter how difficult the situation may be, they feel that they have to prove something to themselves and to their loved ones by not seeking assistance from professionals. This is usually a foolish attitude to have when you are stuck in a serious life crisis, and that is especially true if you are considering declaring personal bankruptcy.

You may have heard some people talk about filing bankruptcy online by filling out a few forms or trying to go through the process without the assistance of a lawyer. Let me tell you why that is not a good idea.

The bankruptcy laws have changed in recent years, and they have become increasingly complex. Even lawyers have complained about the confusing language in the statutes. Even though the new bankruptcy law contains the words consumer protection, this federal law does nothing to help consumers navigate their way to financial recovery. Continue reading ‘Filing Bankruptcy Online Without a Lawyer is Not a Good Idea’ »

Bankruptcy is a very real situation that can happen to anyone. Even rich people who have huge savings in their bank accounts can fall victim to bankruptcy if they do not pay attention to their way of life. Getting stuck in a debt problem is a serious matter. If you find yourself in any of the following situations, it would be best to address the problem right away. Here are the ten signs that you need to talk to a bankruptcy attorney, immediately.

Your expenses offset you monthly income.
Stop and take an objective look on your spending. Do you spend more than what you actually earn in a month? It could be easy to deny this fact. However, the best way to answer this question is to calculate all your monthly expenses in detail. List them down, every little cent you spend in a month should be included, be honest.

After calculating the sum total of all your expenses, subtract it from your salary, and you should be able to come up with an accurate answer to the question.

You often maximize your credit limit.
Do you spend so much on your credit card that most of the time your credit limit is maxed out? This is a major red flag that sooner or later, you’ll be filing for bankruptcy. Ask any financial expert and they’ll tell you that as much as possible, you must not go beyond 50% of their credit limit. Apart from the fact that you’re spending too much, maximizing on your credit has a very negative impact on your credit score. Creditors will deem you as a high-risk borrower. Continue reading ‘10 Signs You Need to Talk to a Bankruptcy Attorney’ »

Financial problems are bad enough without having to worry about what your friends and families will think if they find out about your situation. This is especially true if you decide to file personal bankruptcy and your family members find out about it.

It will undoubtedly be difficult to ignore these feelings, but you need to concentrate on more important issues in order to resolve your financial crisis and restore your family’s future. You should never make decisions simply out of fear or shame; rather, you should give your debt problem careful consideration and make the best possible choice for you and your family.

If that means that bankruptcy is the right choice for you (which you only know if you sit down with a good bankruptcy attorney), then you shouldn’t be dissuaded by the criticisms of a family member. As long as you have made a decision after carefully examining your options and discussing your problems with the professional, then you should be determined to follow through with whatever choice you make. Continue reading ‘What Will Your Family Think About Your Bankruptcy?’ »

Although most people work hard to protect themselves from serious financial trouble by saving money, investing wisely, and making sure their income is sufficient enough to maintain the lifestyle they have become accustomed to, monetary difficulties may be unavoidable for even the most responsible individual.

If a person has lost his or her job, lost money through poor investment choices, no longer has spousal support, or has gone through a divorce, he or she may find that their normal financial situation has changed dramatically. In some cases, people may find it difficult to maintain regular and timely payments to their creditors and are in danger of losing their homes, cars, and other assets.

In such cases, the individual may consider filing for either Chapter 7 or Chapter 13 bankruptcy to discharge difficult unsecured debts and attempt to emerge in a better financial state. Bankruptcy often helps discharge some credit card debts and other unsecured loans, but does not dismiss alimony, child support, student loans, and medical bills. In addition, the applicant may be forced to give up some of his or her assets to repay creditors. Continue reading ‘Assets Protected From Bankruptcy’ »

Many people are struggling to regain their financial footing and don’t know if there is any way out. They have looked at bankruptcy as an option, but they are scared of what the future holds. Is there any way out of overwhelming debt, or is bankruptcy the only option?

Well, bankruptcy is certainly not the only option, but it really depends on your particular circumstances. No one can decide that but you, although the help of a professional financial advisor and bankruptcy attorney would be helpful.

One lawyer told me that you should ask yourself whether you can expect to pay off your debt in the next two years by making reasonable adjustments to your budget. In other words, can you make financial sacrifices and pay off your debt in the next few years without living in what for you would be unreasonable conditions? Now I know the answer is subjective, because you may have different standards of living in your mind as you read this. However, the point is that you have to make reasonable sacrifices. Continue reading ‘Are There Alternatives to Bankruptcy?’ »

Declaring bankruptcy can be a huge weight lifted off of your shoulders – but you must be extremely careful not to fall into debt again in the months and years after you file for Chapter 7 bankruptcy. One of the best moves you can make after declaring bankruptcy is to make sure that you have a steady and predictable income. The best way to achieve that is through getting a job with a regular paycheck.

But is it more difficult to get a job after you have declared bankruptcy? Not really. Although it is becoming more and more common for potential employers to do credit checks on potential employees, your credit score would still have been quite low if you did not declare bankruptcy. Also, there are a few simple steps you can take in order to minimize the effect that your bankruptcy will have on possible employers. Continue reading ‘How Can I Find a Job After Declaring Bankruptcy?’ »

Each client that comes into see me is unique, with their own background and reasoning for needing debt relief. Lately, I’ve had a few more come in that have attempted different options themselves without the advice of counsel including debt settlement, loan modification, and even filing bankruptcy themselves . It made me think, “Why do people choose to file themselves?” Maybe they think it will save them money. Others think that it might allow them to keep it a secret. Here are a few things to keep in mind before you try to file bankruptcy yourself.

The bankruptcy paperwork seems simple, but there are quite a few mistakes that you can make that will ruin your case. What if you leave a creditor off? The court will not fully understand your debt-and you are still responsible for paying that creditor. Unfortunately, you’ll have to pay that debt without the protection of the court which may make it impossible to pay your other payments.

Even if you are lucky enough to get papers the papers right, there are numerous issues that can come up after filing that could result in dismissal if you don’t take the correct action. Continue reading ‘A Few Things You Should Know Before Filing Bankruptcy by Yourself’ »