Economics Finance

Nobody likes to file Chapter 7 bankruptcy. However, when the pressure of debt seems insurmountable, the option of Chapter 7 may seem to be the only way to achieve debt relief. What a lot of people who settle on Chapter 7 fail to realize is that it stirs a whole bunch of other emotions and pressures.

Depression

Without question, depression is probably the most-often cited after side effect of filing for Chapter 7 bankruptcy. People who have financial trouble will lose sleep, become physically ill (the most “popular” physical effects include ulcers, heart conditions, hypertension), and notice a definite strain in their relationships.

Knowing ahead of time that depression is a side effect of Chapter 7 bankruptcy allows filers to prepare for what can be a very bumpy emotional road to their “fresh start.” By understanding just how bad the depression can get, filers can join support groups or seek advance-advice from their doctor or counselor. Continue reading ‘The Non-Financial Side Effects of Chapter 7 Bankruptcy’ »

If we look at the latest stock market activity, with the S&P 500 up more than 40% since the March lows, people looking for ways to repay debt are facing an interesting dilemma. Although interest in debt removal, debt elimination plans, and other debt settlement information has peaked over the last couple years, people with debt trouble should really evaluate positive ways to repay debt. Here is why.

Stock Market Returns Are Leading Indicators

We hear all of the time about leading and lagging indicators. A leading indicator tells us what is expected to happen (higher stock market returns suggest companies are expected to make more money). Lagging indicators tell us what has already happened but is only surfacing now — for instance, the statistic on higher bankruptcy filings tell us that more people were unable to repay debt. It does not mean that they cannot repay debt today, but when they filed they had no other means.

With this in mind, with so many companies expected to become more profitable going forward, it seems employment expectations should improve as companies spend on expansion and other plans. Instead of looking up debt settlement information, which will damage credit, looking at more creative ways to repay debt might make more sense. Continue reading ‘Stock Markets Gains Tell Us to Repay Debt, Not to Write it Off Through Bankruptcy’ »

Debt is becoming a serious problem for many people as the economy remains in recession, but is bankruptcy a good way of escaping your debt problems?

This article discusses the impact of bankruptcy to help you decide if this is a good way of freeing yourself from your debts.

Bankruptcy is one of the forms of insolvency available for people who are unable to settle their debts. It is a legally binding agreement between you and your creditors that protects them from pursuing you for the money that you owe.

As debt problems mount, you can actually voluntarily declare yourself bankrupt if you owe more than £750. Your creditors also have the power to force you into bankruptcy should they feel that there is no other alternative.

Bankruptcy has major implications that you should consider carefully if you are facing a worsening debt crisis. Continue reading ‘Is Bankruptcy a Good Way of Escaping Worsening Debt?’ »

Are you in a bad spot right now? Maybe you’re facing a lot of debt because of illness, injury, or just hard times. If you want out of debt, you have many options to get on the right track. Just like everyone else, you want the very best for yourself and your family, but the bottom line is that you have to survive.

If you feel like your debt obligations are overwhelming, you may be thinking that the best option is to file for bankruptcy. While you should not take this route unless you are sure that you do not have any other options, there are ways of telling what you can do, and many people to help you through your difficult financial problems.

One of your options is to seek out financial counseling. This might sound like just another thing for you to have to worry about paying for, but it is not. You should not have to pay for a bankruptcy evaluation. There are many places that offer free bankruptcy evaluation and consultation.

Do not pay for services like these, otherwise you will not be sure if you are getting honest help. Friends and family might have advice for you during this time in your life, and this is fine. However you should always ask someone who is experienced in bankruptcy evaluation and consultation before you decide if bankruptcy is right for you. Continue reading ‘Perhaps Bankruptcy Can Get You Back on Track’ »

Statistics show that a certain demographic is likely to file for bankruptcy and with the largest “reason” for filing being a loss of income; this demographic is highly likely to be filing in 2009 and 2010 as unemployment reaches into the double digits. We explore this demographic in greater detail and discuss three simple ways that people can fly “under the radar.”

Unfortunately, with rising unemployment it is quite likely that bankruptcy filings will continue to rise. According to national statistics released by the Administrative Offices of the Courts, US Chapter 7 bankruptcy filings were up 43% in 2008 (from the prior year). There is no reason to expect the trend to reverse dramatically for 2009.

With over 1 million filers each year, it should not come as much of a surprise that people are getting over-extended on their credit. And it makes sense, too. With an average age of 38, your typical Chapter 7 bankruptcy filer is also more likely to be a married couple. Continue reading ‘Married and in Your Late Thirties? Bankruptcy Might Be Around the Corner’ »

If you are considering bankruptcy then you might need to consider an evaluation by a professional to see if this would be the best option for you. You must know that filing bankruptcy is not easy and it stays on your credit report for years.

There is something called a means test for consumers who are considering bankruptcy. Congress has also created an income test to determine your ability to file bankruptcy. Basically what this means is that if your income is less than a family median income for the state where you live then you could pass the means test and then you could file bankruptcy 7 or 13.

If your family income is more than the state median income then there are many more forms to fill out. The means tests are very complicated and will require professional help.

Actually on November 1, 2009 the means test numbers will change again. No one is sure at this point which way the numbers will go. Continue reading ‘Bankruptcy Evaluation – Having a Professional Help You Decide If You Need to File’ »

Are you in over your head with bills? Do you feel like you’re drowning in past poor decisions? And no matter what you do they never seem to get off your back? It’s a sad state to be in when you feel debt has suddenly piled up and taken over while income seems to have reduced or gone out of the window completely. If you’re feeling overwhelmed by credit card debt you think will never be paid off, your thoughts may have already turned to bankruptcy.

Although applying for bankruptcy could be the only way to get creditors off your back, it still imposes a heavy price to pay. The implications may and usually do outweigh the advantages. Before you decide to file, consider the multitude of risks that bankruptcy brings. Filing for bankruptcy means a lasting mark on your credit report. Most bankruptcies will haunt a credit report for up to 10 years. The law allows the information to be public and therefore is stored for a considerable amount of time. With the electronic nature of records, many of those public bankruptcy records can be easily found by anyone. For just a few dollars people can purchase a record of you online. And any banks you deal with in the future will know about your bankruptcy and will consider you a poor risk because of your obvious poor money management. Continue reading ‘Bankruptcy – Think About It’ »

Many people think bankruptcy is a good solution when they are in trouble with their money. In some cases, this is true, but many times, there are ways to avoid bankruptcy. Refinancing, debt consolidation, negotiations, and credit counseling are a few ways to save your credit, reputation, and the long lasting effects of filing bankruptcy. While negotiations and credit counseling can still have negative impacts on your credit report, they are at least better than filing bankruptcy.

The first thing that should be considered before filing bankruptcy is determining how much equity you have in your home. You might be able to get a loan with a reasonable interest rate because it’s tied to your mortgage. This loan can be used toward debt consolidation. When you do this, the mortgage company will probably have the debts paid off through escrow instead of giving you the money directly. Then you will only have to worry about making your mortgage payment each month. The monthly payment will be less than what you have been paying since you are piling everything together with a lower rate and financing it over a longer period of time.

If refinancing your mortgage is out of the question, try getting a debt consolidation loan. This is typically an unsecured loan, so it would have a higher interest rate than a home equity loan, but will still be better than trying to pay all the bills separately. You may need to offer the title to a vehicle as collateral for this loan to get the amount you need. If your credit is not outstanding, you may end up needing to go to a B lending institution and pay a higher percentage. Your monthly payment will still probably be better than what you’re paying now.

The above two options are better to do before you get behind on payments because you’ll need to have at least some measure of credit worthiness to get anyone else to lend to you. If you’re already behind on payments, I still recommend you try those options before moving to the next options. You may find someone who can help you get caught up and into a position that you can get the loan you need. Continue reading ‘How to Avoid Bankruptcy – Learn Now’ »

Are you considering filing for credit card bankruptcy? You are not alone. Thousands of Americans have filed for bankruptcy at this point. It is not surprising especially after what has happened to our economy. Bankruptcy is deemed by many as their only way out.

However, before you file for credit card bankruptcy, there are things that you might have missed which you might want to consider before you make up your mind.

Here’s what you should do to make certain that bankruptcy is indeed your only way out:

Get a spreadsheet and write down all your monthly expenses, everything to the last dollar. These expenses will include basic necessities; not so necessary items such as vacations, impulse shopping and the like; and of course a complete list of your credit card bills and other loans. If you notice that you have had unnecessary expenditures in the past, take those out of the equation and see if you are now able to pay your minimum requirement on your credit card bills. If so, then you can still save yourself from credit card bankruptcy. Cutting down on movies, eating out, short recreational trips can be your simple way out of financial destruction. Continue reading ‘Credit Card Bankruptcy – Considerations to Be Made Before Filing’ »

If you think that you need to file for bankruptcy you should consider bankruptcy help from either a well established non-profit organization or through an attorney. Several years ago the laws were changed and it has now become more difficult to qualify for filing. This is because too many people were using this as a way to live recklessly and then turn around and file either chapter 7 or chapter 13 and clear their debts. This was happening with such frequency that lenders began to pass on these enormous write-offs to the average consumer and to try and stop people from taking advantage of the system congress made the qualifications even tougher.

There are pros and cons to tougher laws. While it has cutting down on people that purposely run up their debts and then file, it has made it harder for those who are in serious, legitimate need from getting out from under their crushing debts. If you are in serious debt trouble get help to file your bankruptcy this way you will know and understand your rights as a consumer. Once you decide that you need bankruptcy help here is the necessary paperwork that you will need to have in order. Continue reading ‘Getting Bankruptcy Help is a Wise Idea’ »