Filing For Bankruptcy

Bankruptcy is the resort people have when they cannot pay their debts. This allows you to star from zero rather than having a negative bank account. Filing for bankruptcy may eliminate you from your entire financial obligation, but it results to losing control over bank accounts. There are two main types of bankruptcy. The first one is reorganization where you need to provide the court with a plan of how you are going to pay off all your debts. Liquidation on the other hand is where all of your debts are discharged, cancelled out. This is called Chapter 7 bankruptcy.

Reorganization bankruptcy is called Chapter 13 bankruptcy. This allows the person in debt to retain his personal possessions while being able to pay all his debt. This strategy is usually used by people who intent to pay their debt at a certain time frame, usually three to five years. The person then presents to the court a list of his debt as well as his assets. After this, a plan of repaying the debt is then given to creditors, who check if these are possible. After deliberations, the plan will then be followed in order to pay the debt.

A chapter 13 bankruptcy is helpful for people who still want to keep part of their possessions such as a car or heir house. Most common cases would include failure to pay loans and foreclosure of property or even confiscation them. Approval of this bankruptcy needs to be studied by creditors. They must receive the same amount as with a Chapter 7 bankruptcy.

People are scared of being bankrupt, but it is more alarming when people cannot pay their debts and file for bankruptcy as a last resort. People must need to think twice in incurring debts. Sometimes it may seem easy to pay, buy as time goes by, debts can increase really fast until it gets harder to pay.




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Financial Freedom, Financial Struggle and Bankruptcy are all results of Our Money Habits…Nothing Just Happens!

Financial Freedom, Financial Struggle and Bankruptcy are all results of Our Money Habits…Nothing Just Happens!

Tom Danley's Message of the Month Empowering People with Information and Opportunity

There are four Money -Types: The Wealthy, the Financially Comfortable, the Paycheck-to-Paycheckers and The Deep in Debters. The main differences are the way they think, their money management skills and the result they get. For example, some people save, live debt-free and invest in assets that generate profits that buy their lifestyles while most people save little, invest nothing, and buy their lifestyles on credit. There's no wonder we get different results. Our public education doesn't teach us anything about money! Therefore, most people adopt the money habits of families and friends.

The challenges we're facing in our economy strongly suggest we need to raise our financial knowledge. We don't need money to think like the rich…we just need to think like the rich to get better financial results.

Committing ourselves to personal growth, residual income and a multi-level pay plan is our best option. Trading our time for hourly wages and building our lives on credit gets us broke, so let's stop being comfortable with payday-to-payday money habits. We must discipline ourselves to make changes.

Almost a century ago, Napolean Hill addressed the connection between our money and our minds in his book "Think and Grow Rich." Many millionaires give credit to this book as a catalyst to their achievement of wealth. The teachings of Napolean Hill have proven to empower people to achieve wealth.

With our program, "Message of the Month," we've simplified his teachings and created a pathway to Personal Self-Security and Financial Freedom for Ordinary people in today's economy. You and those you recruit for our program all finding just 3 to 5 new participants who follow our plan could add $30,000 to more than $400,000 residual income per year to your life. In these tough times, it's unwise to remain closed to such an opportunity. Our financial growth plan is simple, sensible and affordable.

Our rate of growth depends on us passing the word like crazy to find those who will embrace our vision. Use brochures, letters, flyers, business/postcards, audio CD's, e-mails, classified ads, etc. to help share our program with more people. Work on sharing face to face with people you know and getting them on conference calls where we can help present the merits of "Message of the Month."

Let's make the way we think our greatest asset and not our worst liability. Together, we are a powerful voice of hope, change and opportunity that can't be stopped!

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Mike has a vision to help change the future of ordinary people who are looking to make a positive change in their lives. Please join him in this quest. Visit: http://www.WealthyUpLine.ws Please use my name Mike Staples and WU ID # 2150-MS. Questions? Call me @ 757-323-3954

Worry No More with the Bankruptcy Court Records

When it comes time to make a crucial financial decision that will help determine your family's financial future, you shouldn't worry what other people are thinking about you.

You shouldn't worry about bankruptcy court records or about what your neighbors may find out about your financial situation. The question you have to ask yourself (and your lawyer or financial adviser) is what course of action will have the greatest benefit for you and your family.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about bankruptcy court records visit us at http://personalbankruptcyquestions.org It's not about what other people think about you or what they will say about you if and when they find out that you declared bankruptcy. You simply have to ask yourself whether you're willing to take a little embarrassment in order to help your family out of this hole that you dug yourself in. Besides, it's unlikely that anyone is going to be too snooping around into your private affairs like bankruptcy unless you live in a small community where the entire town knows what's going on. Even so, your family's future is always more important.

That's not to say that bankruptcy is always a way out. You need to discuss this thoroughly with your bankruptcy lawyer and look at all other options carefully before going forward. That's the only way you can know for sure what course of action is best in your particular circumstances. If it turns out that bankruptcy is not necessary, that's great. Just make sure you look at everything carefully and making the right decision for the right reasons.

Yes, it's true that other people can find out about your personal problems because bankruptcy becomes a matter of public record. However, there are more important considerations when deciding what to do with your financial future.



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Personal Bankruptcy - 5 Signs That You Are Ready

If you are experiencing financial problems, you may be wondering if personal bankruptcy is the right solution for you. When considering personal bankruptcy, you should always remember that personal bankruptcy is an extreme measure, and it will profoundly negatively affect your credit rating - at least in the short term. With that in mind, I would recommend personal bankruptcy only if you meet one or more of the following criteria:

1. You owe more than $15,000 in unsecured debt.

This number is somewhat arbitrary, but it is intended to balance the benefits of a personal bankruptcy against the costs. For one thing, personal bankruptcy is expensive. If you file a Chapter 7, you can expect to pay about $2,000 in legal, filing, and other fees. A Chapter 13 will cost more. You also have to consider that a personal bankruptcy will stay on your credit report for 7-10 years depending on the type of case you file. You really should not consider taking this step unless you are going to discharge a large amount of debt.

2. You have made a genuine attempt to reduce your debt and have failed.

This is important. If you can pay your outstanding debt by simply reducing your spending or perhaps liquidating some unused property, you should probably do this instead of filing for personal bankruptcy. Before you consider a personal bankruptcy filing, you should prepare a detailed debt management plan. This will allow you to determine whether personal bankruptcy is necessary or not.

3. Your debt is increasing despite your efforts to reduce it.

Frequently, people find themselves making minimum payments on credit accounts but then having to use credit to pay for unexpected and incidental expenses, like new brakes for the car or that anniversary dinner. If you are in this category, you may notice that your debt continues to increase. It does not take much imagination to know where such a trend will end. You can not keep it up.

4. You are liquidating your retirement savings to make ends meet.

If this is your situation, you need to stop immediately. Your retirement savings are protected in bankruptcy. If you are spending this money to meet your regular expenses, you are not improving your finances. You are merely delaying bankruptcy. Under those circumstances, it is better to file now and preserve your retirement money than to spend it all and then end up filing for bankruptcy anyway.

5. You are in danger of losing your home.

If you are a homeowner, and you are facing foreclosure, bankruptcy can help you keep your home. As soon as you file for bankruptcy protection, an automatic stay attaches to any legal proceedings currently pending against you. That means you will have stopped the foreclosure process. This may give you the breathing room you need to get your finances together, make a deal with the bank, and save your home.



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Check out this related article, Finding Money to Pay Down Debt, or visit us on the web at Money-411 for more great tips on better living through smart debt and money management.

Personal Bankruptcy: Five Ways to Improve Your Credit After Discharge

The number one concern of most people who are considering bankruptcy is the effect a bankruptcy will have on their credit. In some ways, this concern is merely a reflection of the consumer credit mentality that leads so many people to bankruptcy in the first place. The purpose of this article is to offer strategies for improving your credit and your credit use after bankruptcy.

1. You Must Alter Your Spending and Saving Habits.

In the days before credit cards, people saved money to cover events like broken pipes and leaky roofs. They anticipated large purchases, and they saved for those too. However, when credit cards became popular among the masses, we began to replace savings accounts with credit limits. Instead of money in the bank, we had a credit card with a $5,000 limit in case something came up. The problem with this mentality is that the first time you have to use that card to buy something you can not afford to buy with cash, you are behind, and many people never catch up.

If you have emerged from bankruptcy, you may be debt free for the first time in your adult life. The best thing you can do for yourself and your credit is to change your behavior right now. Make a budget, institute a savings plan, and learn to live without credit. Only when you have taught yourself how to save money will you be ready to handle credit responsibly.

2. Pay All of Your Remaining Debts On Time.

If you kept your car or your house, or if you had student loans that were not discharged, it is critically important that you pay all of these bills every month on time. Establishing a history of on time payments is critical to rebuilding your credit.

3. Do Not Take on Any New Debts or Credit.

Some people will tell you to go out immediately and get yourself a secured credit card, but I think this is a terrible idea. For at least 18 months after your bankruptcy, I believe you should focus on getting your financial house in order. Pay off your car and keep driving it. Enjoy the feeling of not having a car payment. See how much more money you have every month when you are not using all of it to pay for consumer goods you no longer even own. It is too easy to get back into trouble if you jump right back into the credit card game.

4. Save as Much Money As you Possibly Can.

For eighteen months, save every penny you can. Put the money in a bank account, buy a short term certificate of deposit, or put the money under your mattress. You need to re-wire your brain to think about expenses you know are coming and put aside money to cover them.

Having cash set aside somewhere is the best way to avoid problems with credit in the future. A healthy savings account will also lessen the effect of a spotty credit history by giving you a nice cushion for credit purchases it is difficult to avoid. Buying a house is a good example. If you try to get 100% financing for a house 2 years after a personal bankruptcy, no bank in the country is going to want to write you that loan. On the other hand, if you have a substantial down payment, you are showing the bank that you can be responsible with money and that you will also be invested in the house. You will have a much easier time getting the loan you need.

If you know you will need a new computer in twelve months, or you see that the tires on your car are looking worn, there is no reason in the world you need a credit card or a good credit rating to make those purchases. If you can learn to save money for these things instead, you will finally defeat your credit demons. Even if you feel like you are spending your savings just as quickly as you put them aside, you are still much better off than if you were using borrowed money to make the purchase.

5. After an Appropriate Time Begin to Selectively Apply for New Credit

Between 18 and 24 months after your Chapter 7 discharge, get a copy of your credit report and score. Take a look at where you were two years ago and where you are now. Chances are, your credit score has actually improved since the last time you checked it. You are no longer swimming in debt, and you should be building a good history of on time payments. Now you might feel like it is time to get another credit card.

At this point I would recommend that you get yourself a secured credit card. The only reason I recommend that you have a credit card at all is because you will need one if you ever have to rent a car. Car rental places do not like debit cards. Other than that, try to not to use the secured card.

If you feel like you need to use the card every month, try using it for only one monthly expense that you know you will be able to pay. Perhaps you can make it your gas card. Whatever you do, pay the credit card off in full every month. Nobody knows better than you what happens when you begin to carry a balance, so resolve that you will never do it again. If you find yourself unable to pay your credit card balance every month, put the card in a drawer and do not use it again for another 6 to 12 months. You are not yet ready to have a credit card again, but stick with the plan and you will be soon.

Remember that your credit score is just a reflection of your credit habits. Follow these simple steps, and you will see your credit score rise every month. Better still, you may find that your credit score is no longer as important to you as it once was because you have learned how not to live on credit.



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Check out this related article, Finding Money to Pay Down Debt, or visit us on the web at Money-411 for more great tips on better living through smart debt and money management.

The Basics Of Bankruptcy When Faced With Foreclosure

If you have access to any kind of income, then Chapter 7 bankruptcy should nearly always be avoided if you're faced with foreclosure.

The main reasons for saying this, are that even though it will rescue you from creditors and the burden of debt, Chapter 7 will totally destroy your credit rating for many years to come, and what's worse is that the majority of people that use Chapter 7 end up losing their homes anyway.

After appraisal, if the value of your property is found to be at least 10% higher than what is owing on it, then it will more than likely be forced into foreclosure, and any profits from the sale will be used to discharge as much debt as possible.

So, the bottom line is, that if the equity in your home exceeds 10% and you're employed, then don't even consider Chapter 7.

Resorting to a Chapter 7 bankruptcy would also mean than you'd find it very hard and very expensive to get any kind of loan for several years, and that applies to a mortgage, a personal loan, and to an auto loan too.

Something else, which is a little known side-effect of Chapter 7, is that many people that file for it later have problems getting a job. More and more employers now check a potential employee's credit record and if they see that they filed for a Chapter 7, then they'll often assume that he's irresponsible and unreliable as well.

So What Makes Chapter 13 Better?

When you file for Chapter 13, your debt isn't discharged, but it gets consolidated instead, thus allowing a person to begin debt repayment without forfeiting their property. Chapter 13 does require however that you you some kind of income, and the court will also set up a payment schedule that must be adhered to.

We now need to look at the best way to sell a home when faced with foreclosure.

Should you need to sell your home to avoid foreclosure, then there are probably only two practical choices that are available to you.

Either you can sell to a Realtor or to an Investor.

I haven't suggested advertising and selling your house privately as a "practical" alternative, because not only does it take a fair amount of specialized knowledge, but it would also most certainly require a lengthy amount of time to complete the sale, and there are many additional fees involved, which would have to be paid up front.

A combination of time-frame and expenses therefore mean that selling privately would almost certainly be impractical for somebody already looking bankruptcy in the eye.

A workout agreement could be an alternative option however.

A workout agreement is by definition, a mutual agreement that is agreed upon by both the borrower and the lender that reschedules loan payments and modifies the payment terms by extending the original maturity. It would more than likely be possible to lower your monthly mortgage payments a little by way of a workout agreement, but the monthly mortgage payment is seldom the only reason that a person is forced into bankruptcy.

Selling To An Investor Is Often Best The Best Way

Selling to an investor will prevent the foreclosure from appearing on your record; the debt will appear as having been paid; and an added bonus is that any foreclosure process that might be in progress will be halted almost at once.

What's more, it's nearly always possible to leave the house in an orderly manner, and since the investor is the one that will have to pay for inspections and repairs, a lot of unnecessary worry is removed from a highly stressful situation.

The only real drawback to selling to an investor, is finding one that can make a deal that is acceptable to the lender. The problem being that the investor will want to pay a sum that will allow him to make a profit, whereas the bank will want minimize its loss.

The Positives And Negatives Of Listing With A Realtor

If a person isn't under any real time pressure, then selling via a Realtor could well be the way to go. It might be possible to end up with some cash from the sale, and the time it takes to sell the home can be spent looking for a place to rent, or even to buy, if the luxury of downsizing to a different home is an option.

Be aware though, that in addition to the lengthy time-frame that will most likely be necessary, that there will be the Realtor's commission, and various legal fees that you'll have to pay. What's more, the potential buyer will almost certainly insist that you pay for the cost of a home inspection, and should any problems be discovered, then the cost of fixing them will most likely be deducted from the agreed sale price.

After reading the above, you should be able to judge for yourself whether it would be best to sell your home by means of either a Realtor or an investor, and if you feel that there is no other choice available other than to file for bankruptcy then the decision as to whether to file for Chapter 7 or 13 should be a clear cut one.



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The author of this article was a top film sound editor for many years and he produced a film for Columbia at a very young age. One of his primary interests is economics, and one of his websites -> http://get-financial-help.org is for people with bad credit that need a loan. The cost of an extended list of lenders is extremely small, and anyone not getting a loan within 60 days gets a full refund.

Personal Bankruptcy: A Very Stressful Thought

Examining the bulk of filings, merely considering personal bankruptcy is sufficient to frighten someone so much that they might panic and be reluctant to realistically look at their financial problems. Unfortunately, statistics show that around five people out of every thousand have found themselves filing personal bankruptcy and still more worrying, this number is rising. Additionally, reports from research corporations show that the primary reason that people are filing for personal bankruptcy is due to excessive spending which accounts for excessive debt. If these same consumers then experience the financial weight of unplanned and unanticipated situations this can throw their monetary resources into complete turmoil.

There are many reasons why a consumer might elect to file for bankruptcy. Getting laid off from a job or paying for divorce proceedings are all too common as is the death of a spouse. Each of these have the possibility to spell calamity for your money and budget. The average person that chooses to file for bankruptcy is normally someone who successfully graduated from high school, is a blue collar worker, and is also the head of the household, even though they are probably in the category of lower middle income. At the same time this person is also going to have stretched their monetary resources too far and very likely depended to a great extent on credit in the past.

Laws currently are working today that are designed to protect both the creditor and debtor and such laws are in place to ensure that those consumers who are honest suffer minimally due to their financial mismanagement. The identical laws likewise provide protection to the creditor and assists them to recover any funds they are owed.

If you are considering filing for personal bankruptcy there are two choices available to you. The first is that you can opt to file for Chapter 7 bankruptcy. The second option is Chapter 13 bankruptcy and both differ quite substantially. Chapter 7 bankruptcy requires all of your assets (that are not exempt) to be liquidated and the proceeds of these assets will be dispersed amongst your creditors to fulfill the debt owing to them.

Chapter 13 bankruptcy is a more or less softer option in that it does not require any liquidation of your assets. It does nevertheless require you to reorganize your financial obligations in such a way that you are able to make debt payments over a period of between three and five years.

One of the aspects that many individuals do not consider, however, is that the option of which chapter to file is not their decision. This is a determination of the courts, who will give that decision after a careful inspection of your particular financial information. It is because of this that a bankruptcy lawyer is strongly recommended so your data can be exhibited in the correct light. However, concern exists within numerous financial analysts who see personal bankruptcy as a real menace to the health of the economy and there is just grounds for this. The number of people who file for personal bankruptcy is rising which in turn causes a disturbing trend. In turn this has prompted some drastic measures being enacted.

Only recently, in March 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was presented and this forces people who file for personal bankruptcy to undergo a number of tests on the status of their income and to adhere to stricter regulations before they are permitted to declare this type of bankruptcy.

For more insights and additional information about a Personal Bankruptcy as well as getting a free bankruptcy evaluation from a qualified and experienced bankruptcy lawyer in your area, please visit our web site at http://www.bankruptcy-data.com



About the Author
For more insights and additional information about a Personal Bankruptcy as well as getting a free bankruptcy evaluation from a qualified and experienced bankruptcy lawyer in your area, please visit our web site at http://www.bankruptcy-data.com

Finding Bankruptcy Alternatives

For businesses or individuals who are in deep financial trouble, they usually see bankruptcy as a solution to their problems. However, what people should know, especially consumers having financial problems, is that there are bankruptcy alternatives that will aid them to get out of a financial mess.

The advantage of bankruptcy is that this can prevent the creditor from seizing certain types of properties. Nevertheless, another way that a debtor can solve his/her debts is by taking no action. This is applicable to individuals who do not have wages; they might be retired or unemployed, no steady income, and individuals who do not have any properties. Thus, even though legal action can be taken against an individual, this still does not affect their financial situation. More importantly, creditors usually do not initiate any legal action against debtors with no assets, as they cannot possibly collect anything from them.

By taking no action as bankruptcy alternatives, an individual would just need about seven years, in most cases, before their debts can be removed from a debtor's credit history.

Another alternative is self-money management. People who have debts, usually spend more than what they earn in a given time. Thus, for people to stay out of debt, they have to reduce their monthly spending. By doing so, they can have extra cash that they can use to pay for their debts. Self money management means that the individual needs to create a personal budget and analyze expenses so as to find areas that they can reduce expenses.

Self-money management bankruptcy alternatives mean analyzing expenses and creating a personal budget. Most people usually find that they can reduce expenses for food, transportation and, telephone and cable television services. They can reduce expenses on food by eating out less often. In addition, taking public transportation instead of driving a car can reduce transportation cost. In addition, limiting telephone and cable television services can reduce cost of these types of services. Thereby, they can have extra cash to pay debts.

Debtors can also negotiate with their creditors as bankruptcy alternatives. Most creditors will understand that bankruptcy is only an option if an individual has too many debts. Thus, they can find that most creditors are actually willing to negotiate a settlement. This allows them to get a portion of the money owed to them, unlike with bankruptcy wherein they risk losing everything. This alternative is applicable to debtors who have a steady and sufficient income, and has assets that can be liquidated. This also allows the debtor enough time to rebuild their finances.

Another alternative is debt restructuring. This is a process wherein an individual or a corporation or partnership that is experiencing financial problems is allowed to reduce and renegotiate their delinquent debts. This will allow them to improve or restore liquidity and rehabilitate to be able to continue their business operations.

Bankruptcy alternatives are usually less expensive and a much better alternative than bankruptcy. But debtors must allot time and effort to negotiate with bankers, creditors, vendors and tax authorities. The advantage of this method is that the debt is reduced and debtors can have an extension of their payment terms.

These are just some of the options that people can do instead of filing. Using these methods may help individuals save their businesses, but before doing any actions; they should always remember that it is better to consult a financial advisor that can assess their financial situations. Have faith, there are bankruptcy alternatives out there.


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By Naomi Smith