If you are in a bad financial situation where you feel there is no hope for you to recover, bankruptcy might be your only option. People who have lost a job or don’t have enough income to cover all of the growing expenses may need to consider the different options that they can take. If you are going to apply for bankruptcy, you may be required to get bankruptcy counseling before you can file.

Most courts will require people who are applying for a bankruptcy to get a bankruptcy credit counselor. These counselors will need to be approved by the court. If you fail to meet the requirement of getting a bankruptcy counselor, you may have to start the approval process all over again. Even if your bankruptcy is not a result of financial mismanagement, counseling is often required by the courts.

Most courts will give you a list of different credit counselors that are approved. Before you see a counselor your need to make sure they are approved by the courts. You can often get the courts to approve most counselor you choose; you just need to contact them. (more…)

It seems with this financial crisis everyone is getting a bailout. The banks, wall street, car manufactures, even the postal service needs help, how about the average guy? Explore why bankruptcy is one form of a bailout for the average person.

Why Bankruptcy?

The bottom line in today’s financial system for a person who is deep in debt without hope is bankruptcy. The number 1 thing that holds people back from dealing with this issue is fear, lack of understanding. It’s true, this is not a pleasant subject to talk about, but faced with legal ramifications due to debt problems it’s an option you must consider.

Historically bankruptcy is as old as man himself. Debt is not something new, in fact going back there was debtors prison where jail was an option for non-payment. Now compared to that system bankruptcy isn’t so bad. It doesn’t seem right that a bank could go out make risky loans, make billions of dollars, sell them off to the Feds and start all over again, but they do. That’s the way the system works, bankruptcy is what’s provided for the average person. (more…)

The American economy has been largely built on a consumer population addicted to and reliant upon credit. Big ticket items like cars, appliances, furniture, and homes have been purchased on borrowed money for decades and it has gradually become the norm to overspend and to utilize the once sacrosanct credit cards for day to day purchases. This has spiraled outward for many people into an overall attitude toward and handling of money that has left them scrambling or unable to make ends meet. When financial obligations are greater than you can afford, it may be time to consider filing for bankruptcy protection under the chapter of the Bankruptcy Code suited to your debt and asset situation.

Making the decision to enter bankruptcy is difficult, primarily because there is a longstanding social disapproval of the practice. But as more individuals and businesses find themselves struggling to cope with unemployment, stagnant wages, and rising interest rates on mortgages, credit cards, and other financial instruments it is becoming an unspoken and necessary step for many. The matter is further complicated by intentional disinformation put forth by debt collectors and other entities and the presence of countless finance gurus and laypersons who offer their opinions unsolicited and sometimes with serious misunderstandings about the subject at hand. (more…)

There may be no hope for Excel Airways or US banking giant Lehman Brothers, but many struggling small businesses and sole traders could still survive the oncoming recession – all they need is some good business sense and top quality bookkeeping.

Now that the credit crunch is really digging its heels in, there’s no doubt that things are going to get worse before they get better for the majority of British businesspeople. Recent forecasts warn of a winter recession, while a survey of British workers revealed that many are now experiencing sleepless nights over financial concerns.

Whilst lack of sleep may not be an effective way of safeguarding your livelihood, it is also a very bad idea for business people to ignore the problems they are facing. For those who are struggling in the current economic climate, the most important thing is to monitor the progress of their business with effective bookkeeping and to react swiftly to any warning signs.

Here are five reasons why small businesses need to put even more emphasis on bookkeeping during the recession:

1. Monitor and Control Expenses

Now more than ever, it is important to watch the level of expenditure and not to let it get out of control. Regular accounting will tell you how your expenses are running when compared to your targets, and will also allow you to compare monthly income against monthly expenditure. (more…)

Filing for bankruptcy ruins your credit for 10 years.

Not True. As with any other credit information, the fact of the bankruptcy can stay on your credit report for 7 to 10 years. (Remember, if you are considering bankruptcy it is highly likely that your credit rating has already been damaged, especially for the purpose of obtaining a home loan.) You can start rebuilding your credit, however, even before your bankruptcy is completed. Continuing to make your house or car payment on time can help you reestablish a good credit rating, as can making timely payments on a Chapter 13 plan or on any new loans.

Everyone will know you filed for bankruptcy.

Not True. The fact of your bankruptcy is a public record but unless you are a prominent official or high profile person, people aren’t going to go looking.

After the recent changes to the bankruptcy law, filing bankruptcy doesn’t help much.

Not True. The 2005 changes mean that a few people may no longer be able to file a Chapter 7 case, but most people are still able to get the same relief now as before the law changed. If a Chapter 7 is not available to you because of the 2005 changes, Chapter 13 may still offer you significant relief.

You are a bad person for filing bankruptcy.

Not True. Bankruptcy is a solution to help good people go through a tough financial time. It provides people with the fresh start that they deserve. Congress passed the bankruptcy laws because Congress recognized that we needed a safety net in our economic system for individuals, who have little control over large shifts in our economy or over unexpected personal developments such as job losses and medical expenses. The events of late 2008 should be making it clear to all of us that our financial health is not usually a function of whether we are good or bad persons.

You can pick and choose what to put into bankruptcy. (more…)

Bankruptcy and You – Understanding Credit Cards and Credit

Bankruptcy reform has made it more difficult than ever for people to file bankruptcy and enjoy being able to just get rid of credit card debt when they cannot afford it. However, this increase in difficulty when it comes to debt relief has led to credit card companies that are more aggressive than ever before. There is a great debate among the ABA, or American Bankers Association, about who is to blame for credit card debt and so many bankruptcy cases being filed. The lenders blame the consumers, while some blame the creditors for being too aggressive.

There will never be a definitive answer as to who is at fault. However, in order to make sure that consumers are safe no matter what creditors are doing, it is important to be informed. It IS harder than ever to file bankruptcy if a financial debacle is created. It isn’t hard to find debt relief services or companies that can help with debt settlement. It is the responsibility of the consumer, no matter how persuasive creditors might be, to avoid becoming another statistic of credit card debt and let debt take over their lives. (more…)

While bankruptcy is very much a viable and legitimate means of resolving desperate financial situations, people have some very grave and real concerns about a number of potential consequences. A commonly asked question by those considering bankruptcy as a route to solving their problems is, “Will bankruptcy affect my job?” And if so, “HOW will bankruptcy affect my job?”

Well, technically, federal law prohibits any discrimination on the part of your lawyer against you because you have declared or are planning to declare bankruptcy. So, you should not feel concerned about the potential problems with an existing employer. There should be no ill will, negative responses, being overlooked for promotions and certainly not fired over your personal financial situation in regard to bankruptcy. If you receive this type of treatment, your employer is in breach of the law and you could take legal action against him or her. (more…)

If you’re having problems with your finances, seeing your money seem to vanish into thin air, and are starting to become stressed out about it all, you need to do something and do something now.

If you just can’t discipline yourself to do what you need to do, you need to contact a credit counseling organization.

A credit counseling organization can help you with setting up a budget and monitoring your expenses. Some will also contact credit card companies for you to work out some kind of payment plan that meets both your needs and the credit card company’s needs. They may also help you with any debt collectors that may be harassing you.

Many credit counseling organizations are nonprofit and will work with you to solve your financial problems. But you need to be aware that just because an organization says it’s “nonprofit,” it doesn’t mean that their services are free. There is no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, which may be hidden, or pressure consumers to make large “voluntary” contributions that can cause more debt. (more…)

If you are a US citizen then you have the right to have an accurate credit report. Any misinformation must be corrected by the consumer reporting company or the company that is providing the information to them.

Consequently, if you see inaccurate information in your credit report, contact the consumer reporting company and tell them you found wrong information in your credit report and you want it corrected.

How do you do this?

You need to completely and clearly state your problem and then show them what is wrong and why you think it is wrong.

To do this you should do the following:

* Tell them in writing. Do not phone them or send them an e-mail.

* Give them your complete name and address (more…)

The government is making it easy for homeowners to save on their taxes this year. Whether you’re a first time buyer, or just renovating, there are a number of savings out there.

Save The Environment and Money Too!

Thanks to the $700 billion bailout plan, going Green in 2009 can net you some juicy tax credits. A number of incentives that are especially helpful for people living in older homes, include:

- Credit for 30 percent of the cost of a photovoltaic solar energy system. For a wind energy system a homeowner could receive up to $4,000 or 30 percent of the cost of installation of a home windmill system.

- A $1,500 credit for installing energy efficient windows, doors, water heaters, roofs, insulation, heating, or a central air system in 2009 or 2010.

Sell Your Home and Pocket the Profit

Selling your home at a profit provides a juicy tax break if it was your main residence for at least two of the past five years. Singles don’t pay taxes on profits of up to $250,000, and married couples have a $500,000 threshold. If, you owned the home for less than two years you may still qualify for gain exclusion if you sold your home due to job, health or unforeseen circumstances (such as divorce or death). Ensure that you have the necessary documents to back up your claim, such as a doctor’s letter. (more…)