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Credit card debt relief – Why do you need it?

Credit card debt relief is very much needed, it goes without saying. Getting out of debt and regaining financial stability should be the main aim of any debtor. Whether it is getting credit card debt relief or dealing with your utility bills, medical bills, store cards etc you cannot allow your finances to go haywire. Credit cards have posed to be a very serious problem since plastic money is being used for fulfilling basic needs too. But consumers have to survive the credit crunch and it won’t be wrong to say that they are not keeping any stones unturned to cut costs and save some cash.

Why do you need credit card debt relief? If you don’t try for credit card debt relief, your debts will eventually grow and you will have no other option but to file bankruptcy. And would you like to run around the bankruptcy courts? You will certainly not want to. So, the sooner you attend to your debts, the better it is. In fact if you address your credit card debts as soon as you sense that you are likely to face a financial crunch, take your finances in your stride. By doing so, you will be able to avail the debt help options that are considered as bankruptcy alternatives. What are they?

Some of the widely used debt help options include debt consolidation, debt settlement, credit counseling and debt management or DMP. Remember if debt consolidation is a good debt relief option for you, it may not be for someone else. And if you are confused about the debt solution that will meet your financial requirement, you can take help of a credit counselor.

There are many benefits of availing credit card debt relief. They are as follows –

• Your debts become manageable

• As you become regular with your payments, your credit score improves

• No matter which debt relief option you choose, your debt load is reduced. Either your monthly payments become affordable or the total amount you owe is eliminated to some extent

• You don’t get to receive threatening and harassing phone calls from debt collectors

• You get a debt free life

A word of caution when you are planning to hire the services of a credit card debt relief company, make sure the company is reliable and has a proven track record. If you are opting for debt consolidation, the company offering debt consolidation services should be accredited by the BBB or the Better Business Bureau. And if you are planning to settle your debts, the debt settlement company you hire should be a member of TASC or The Association of Settlement Companies.

The Good Sides To Bankruptcy

If you are finding yourself having financial problems and not be able to pay your bills on time, you may be considering filing bankruptcy.  If you are thinking about bankruptcy, then you may have a lot of questions about the process and if it is really to your advantage to file for it.  Today we’re going go over the advantages to filing bankruptcy.  Keep in mind there are a lot of aspects to consider and each personal situation is unique to themselves this is why talking to a bankruptcy attorney is always good idea.

Automatic Stay
One of the first advantages to filing bankruptcy chapter 7 or chapter 13 is the automatic stay.  The automatic stay requires that creditors must stop trying to collect debt from you. Meaning that they cannot call you, leave messages on your phone, send you any notices in the mail; all the creditor harassing must come to a stop.

A New Beginning
Another advantage is that your will have a fresh start when you receive a bankruptcy discharge.  If you decide and get approved for a chapter 7 bankruptcy, you can choose which secured and unsecured debts you want filed under the chapter.  This means if you have a lot of unsecured debts such as credit cars or medical bills, you can get rid of all those bills.

Choices
The nice thing about bankruptcy is your have some options on what type of chapter you want to file under.  If you have property you want to keep you may want to consider chapter 13, where you can keep your property and reorganize your debts so the payments are more affordable.  If you mostly have unsecured debt and no property you then may want to consider chapter 7 bankruptcy where you can completely wipe away unsecured debt if you are approved.

Keep in mind that with the new bankruptcy laws, getting approved can be a bit more difficult, that is why talking to a bankruptcy lawyer is your worth your time.  They know the laws and will know right away which bankruptcy is best for your situation and if you will get approved

Stopping Foreclosure
When you file for chapter 13 bankruptcy you may be able to stop the foreclosure for awhile.  With the automatic stay the foreclosure process will be put on hold until the bankruptcy is worked out.  So if you looking to try and save your home and need more time you may want to look into chapter 13 bankruptcy.  It is highly recommended that you talk to a lawyer if you are in this situation.

A Fresh Start
After bankruptcy this is a time to get a fresh start in your life a clean slate.  Learn from your mistakes and don’t get yourself in the same situation.  Before you can even file bankruptcy you have to take a credit counseling class, so hopefully there you learn to manage you money and finances better.  Learn new ways to budget your money and not get yourself back into this situation.

How Bankruptcy Can Stop Creditors from Harassing You

If you are having personal financial problems and slipping behind on some of your bills and credit cards payments you may have found yourself hitting that ignore button on your phones quite often.  As soon as you are past 30 days late on any kind of payment you are going to find creditors calling and harassing you at all hours.  This can be very annoying, especially when you are checking a voicemail just to find a machine saying to call back this very important number.  If you are in financial hardship and stressed out all ready the last thing you need is constant harassment from creditors at all hours of the day and night.

If you are in  financial trouble you may find that you have even more problems then just harassing phone calls, you may find yourself in foreclosure or your utilities being turned off, or even your car reposed.  You may even find yourself being served a lawsuit by a creditor who wants their money now.

All this can be very overwhelming, especially when you are trying to get your finances in order.  When it all becomes too much and you know that catching up on all the bills is not going to happen, it may be time to look into bankruptcy.  Millions of Americans turn to bankruptcy everyday, to help them out of financial difficulties.

Bankruptcy automatic stay
When your file for bankruptcy you receive what is known as the automatic stay, this is where the harassment from creditors will have to stop immediately by law.  Also any lawsuits filed against you must be stopped as well.  The automatic stay is there to give you some space from the constant harassment, so you can get your finances worked out, or in a more manageable position.

Save your home from foreclosure with bankruptcy
You can apply for either chapter 7 or chapter 13 bankruptcy either one will give you the automatic stay.  Now if you are trying to stop foreclosure use chapter 13, it can be quite useful in that situation.  The automatic stay will temporarily stop the foreclosure proceedings as well.

Prevent having your utilities turned off with bankruptcy
The automatic stay can also help you if utility companies have threatened to turn off your water, electric, telephone or gas.  When you file for bankruptcy, the disconnection is at least prevented for 20 days.  When the bankruptcy goes through, most utility debts will be discharged all together.

Bankruptcy and Eviction
If you landlord has been threatening to evict you the automatic stay may just help you stay in your apartment.  Although keep in mind with the new bankruptcy laws, the landlord can evict non-payers of the rent a lot easier now.  If your landlord created a judgment of possession against, prior to you filing bankruptcy, then likely they can evict you.  Automatic stay will not protect you if you have damaged the landlord’s property.

Bankruptcy can help your situation, if you are struggling a lot on your finances and it all feels too overwhelming.  There are many different rules and regulations to the whole bankruptcy process, but talking to a bankruptcy attorney can help you sort out what choice may be right for you.

How To Build Your Credit After Bankruptcy

If you have chosen bankruptcy Chapter 7 or Chapter 13 to ease your financial burdens, then you may be looking for ways to build your credit score back up.  It is true that after filing bankruptcy your credit score is going to take a hit, but that doesn’t mean you won’t ever receive credit again.  With the right amount of work and effort you can easily repair your credit after filing bankruptcy.

There are important things you need to know when rebuilding your credit after bankruptcy.  First it is likely you will receive some sort of credit after bankruptcy, you might get a high interest credit card in the mail or approved for some sort of loan, this okay, but you must pay you bills on time.  Not missing one payment is the key to rebuilding your credit.  If you do miss one, your credit will take another huge hit and it will set you back even further.

Keep in mind that a credit card or store card will be one of the easiest ways to help out that credit score.  If you receive one of this after bankruptcy, you can charge a very minimum amount on it each month, say twenty dollars and then pay it off each and every month.  This will help you credit score increase quickly.

Remember the first key step, don’t miss a payment and do not pay it late, this is very important.  In order to achieve this, you must refrain from charging more then you can handle paying off each month.  Don’t talk yourself into charging too much, ten to twenty dollars is all you need to charge.  Anymore than that, then you know your starting to abuse the credit card and your not actually using to help increase your credit score.

Another good idea is to take a money and debt management class, there are many held by non-profit organizations.  These programs are very helpful in teaching you how to organize your finances and hold on to extra cash.  Also knowing how to manage your money in general is a very useful skill to have and your future will only benefit from the knowledge.

Getting a loan after bankruptcy is usually possible after about two years of rebuilding your credit.  If you have a flawless record for paying all your bills; credit cards, utility bills and rent on time, banks may approve you for a loan.  Usually you will have to have a 3 to 5 percent deposit to put down.  This is another good reason to learn money management skills after you declare bankruptcy, because hopefully in two years you have been wise with your finances and have this money to put down.

Those two years you spend rebuilding your credit score, it is important that you have a job a regular income coming in.  This is another big thing lenders will look at before approving your for a bigger loan.

A lot of people worry that after bankruptcy it will take 7 years before they can ever purchase anything bigger, like a car or home.  But you can see that with the right amount of work and effort you can get approved for a loan much before that.

Bankrputcy Discharges: What Debt Remains

If you are in the process of considering filing for Chapter 7 Bankruptcy and wondering what can be discharged, your in the right place.  Filing Bankruptcy can be a positive experience for most people and a fresh financial start.  But depending on where most your debt is coming from, a Chapter 7 bankruptcy may not be the right option to help you.  Not all debt is easily discharged; so read on to learn what may not get taken care of with a bankruptcy.

Debts That Contribute To Society
First of if you have a lot of debt such as child support, alimony or any other money that contributes to the good of society, chapter 7 may not help you.  Debt that contributes to society in a positive way isn’t going to get discharged with a bankruptcy.  Bankruptcy was set up to help people in financial hardship and is monitored close, so that people do not take advantage of the bankruptcy system.  Do not try to take advantage of system that is meant to help people, just to get out of financial responsibilities.

Are Student Loans Taken Care Of With Bankruptcy?
Most government loans will not be discharged with a bankruptcy.  This is because the amount of money granted by the government each year for colleges.  In fact student loans are one of the toughest loans to get discharged, they have even made it more difficult with the latest bankruptcy laws.  It is possible to get a government student loan after bankruptcy though.

What About Car Payments and My Home Mortgage?
Car payments and mortgages will not be discharged with Chapter 7 bankruptcy.  If you are looking to stop foreclosure on your home a better option will be to go with a Chapter 13 bankruptcy.  Chapter 13 is where you will workout a repayment plan that will pay your creditors back in three to five years with little to no interest.  It can also stop foreclosure on your home.  While a Chapter 7 will just halt the foreclosure process and protect you from harassment from creditors.

Keep in mind if you are in foreclosure that a bankruptcy will look better on your credit then a foreclosure will when it comes to getting approved for a future mortgage.  You can get approved for a mortgage after bankruptcy; it will take some time and probably come with a higher interest rate then your last mortgage.  Mortgage companies will look into why you filed bankruptcy in the first time, if it was a one-time occurrence or an ongoing pattern before they approve you for another loan.  If you have your finances back on track you should be able to get approved for another mortgage.

Bankruptcy can remain on your credit for seven years, this is something to consider before filing.  Think about your future and what kind of purchases you may be making.  A bankruptcy should give you a fresh financial start though, taking care of much unsecured debt, such as credit cards.  If most your debt is unsecured, then bankruptcy may be the right option for you.  If you have any of the above mention debts, then talking to a local bankruptcy lawyer, would be wise.  They will know the local laws for your state and what chances you have of getting debt discharged.

In just one free consultation with a bankruptcy lawyer you will gain the information you need to make a decision that is right for you and your future. Take Me To The Free Consulatation.

Step By Step Guide: Chapter 13 Bankruptcy Process

If have assets your are looking to keep, like property, homes or cars chapter 13 bankruptcy is the way to go.  With Chapter 13 bankruptcy you pay back your debt over 3 to 5 years with little to no interest.  This way if you have assets that are important you and want to keep you won’t have to liquidate them like you do with Chapter 7 bankruptcy.

THE CHAPTER 13 PROCESS

1.    First you petition with the court to bring you relief under chapter 13.  A petition is a two-page form, which is signed by the debtor and the attorney.

2.    After the petition has been filed you will be given a docket number.  Which means you have officially “filed” a chapter 13 bankruptcy and you have an automatic stay.  No creditors may demand money from you now or harass you.  You also need this docket number to stop any foreclosure proceedings.

3.    After you file your petition you will need to submit a list of all your creditors, with their names and addresses to the bankruptcy court.

4.    After you submit a list of the creditors you will need to submit your assets, liabilities, income, expenses, past financial history and you plan outlining how your propose to reorganize you debt and pay it off under the chapter 13 bankruptcy.  You must prove that you capable of paying off the debt.

5.    After you file the above paper work, you will have another opportunity, if need, to file amendments as necessary.  For instance you may need to add a creditor or modify the schedules etc.  The amendments may require an additional fee for your lawyer as well as for the bankruptcy court.

WHAT HAPPENS AT A CHAPTER 13 TRUSTEES MEETING

Usually you don’t see a judge about your case, unless something has been contested, instead you will have a chapter 13 trustee meeting.  The meeting usually takes place one to three months after you have filed the bankruptcy petition.

At the meeting can consist of everyone you owe money to, who you listed on your paperwork.  At the meeting they will be given an opportunity to ask any questions regarding your financial situation, which may affect the plan you have proposed.  Usually though few if any of your creditors attend.  Most likely the large creditors, the holder of your mortgage or someone you might owe a large sum of money to will attend.

Also your attorney or someone from their firm will be at the meeting to represent you and speak on your behalf as needed.  The person asking the questions and meeting coordinator will be the chapter 13 trustee.  If all goes well there will be only one meeting, if there are no objections raised, all that is left to do is make all payments outlined in your plan in a timely manner.

How To Get A Student Loan After Bankruptcy

If you filed for bankruptcy and are still are a student or thinking about going back to school you still can get government financial assistance.  Not all is lost, because you are young and had to go through bankruptcy.  Credit card companies are usually at the door trying to rope students in as soon as they enter most colleges.  It isn’t really fair to young people, who are just learning to manage their money, if it happened to you, then count yourself in with a lot of other college students in America.  But don’t to hard are you self there is life after bankruptcy and you can continue getting help paying for your education.

Government Loans and why you still get them after bankruptcy
The reason you are still eligible for government student loans after bankruptcy is because they are not private loans.  Government loans are based on your needs rather than credit.  The government wants people to approve their economic future and will help you out with tuition and school expenses.

Government Loans may or may not be enough
Keep in mind though that the government can only give you so much each year.  If you are going to a more expensive school, it may not be enough to cover all your expenses.  If you are going to a private school, a major university or grad school, you may find that the government loans just to cover enough of tuition and living expenses.  You will have to looking into other options and solutions.

What about Private Loans after Bankruptcy
A lot of people will take out private loans, to fund their education, but these loans are based on credit.  After Bankruptcy your credit will be very low and you will not get approved for a private loan.  You may have to put school off for several years, while you build your credit bank up after bankruptcy.

Even if you found someone to lend you the money, it may be at a very high interest rate, causing you to pay for school two or even three times over.  Also keep in mind that you cannot consolidate private loans with government loans after you graduate.  It may be very hard to keep up with two loan payments, right out of school and at a entry level job.  Also government loans have a fixed interest rate and Private loans do not, so your payments may vary and get quite expensive.

Don’t give up there are solutions
If government loans are not enough, don’t give up trying to find some sort of solution.  This means you may have to get a job to pay for your housing expenses or some of your books.  Or consider taking less classes and saving some money that way.  Or possible take night classes and reduce your schedule to part time.  You may even want to try transferring to a less expensive school, if you going to a private university, try to swap it for a state college.  These may not be ideal answers, but they will work and help you continue with your education.

Can Bankruptcy Stop Foreclosure?

Every 13 seconds another home enters foreclosure, according to the Center for Responsible Lending.

If you’re being threatened with foreclosure, you’re probably trying everything you can to save your home.

But if you’ve fallen too far behind on payments and having difficulty catching up, Chapter 13 bankruptcy may be able to give you the relief you’re looking for.

Chapter 13 was designed to stop foreclosure and repossession.

Chapter 13 Bankruptcy and Foreclosure
The personal bankruptcy option of Chapter 13 offers some debtors a chance to catch up on those late mortgage payments through the Chapter 13 repayment plan.

Under Chapter 13, the filer is placed on a repayment plan that’s agreed upon by the court, the creditors and him or herself and/or the bankruptcy lawyer.

One the terms are approved, the filer then makes one lower monthly payment on past due and current debts.

The Benefits of Chapter 13 Bankruptcy
In exchange, the filer is permitted to keep the property he or she is repaying on, such as a house or car. This repayment plan typically lasts between three and five years.

During this period, the filer has no direct contact with creditors, which means the harassing calls stop and the collection letters stop piling up in your mailbox.

In addition, if all payments are made according to schedule by the end of the Chapter 13 repayment plan, the bankruptcy court has the option of discharging (eliminating) the rest of the filer unsecured debts.

Unsecured debts are considered debts not tied to property (as opposed to secured debts like a home or car note) and can include:
•    credit card debt
•    medical bills
•    payday loans
•    utility bills
•    some personal loans
•    parking tickets

Who Can File Chapter 13 Bankruptcy?
There is no official “test” to determine whether a person is qualified to file Chapter 13; however, since the Chapter 13 plan involves monthly payments, filers usually need a steady income in order to be able to keep current with payments.

If you’re struggling with debt but don’t have a steady income and rent or have little equity in your home, Chapter 7 bankruptcy may be a better personal bankruptcy option.

Chapter 7 involves the discharge of unsecured debt, but it can also involve the liquidation (sale) of a debtor’s significant property in order to repay creditors.

For this reason, Chapter 13 is likely to be a better option for people who are filing bankruptcy and want to keep their home.
Bankruptcy Questions?
It’s important to know that everyone’s situation is unique and filing bankruptcy isn’t right for everyone.

A bankruptcy lawyer can be a good person to talk to about whether bankruptcy may be able to help you get out of debt and/or keep your hard-earned property.

Get Out Of Credit Card Debt

When facing huge amounts of debt, bankruptcy may be something on your mind.  Learning and understanding bankruptcy, is very important to do before deciding to file.  If you have large amounts of debt and are scraping by pay check to pay check you are probably like most Americans out there.  If you still able to make your minimum payments on your credit card bills then bankruptcy can wait, while you see if you can come up with more money to pay off your bills.

One of the key ways to pay off debt is to make more than your minimum payments.  But how are you going to do this if your barely scraping by at the end off the month.  Well by reading this article I’m going to share with your tips and tricks of the trade to have more money in your pocket at the end of each month.  That way you can have more money for chipping away at your debt.

The Grocery Store
The grocery store is somewhere you can save possibly several hundred dollars a month.  First before you go to the store make a list of everything your going to need at the store to make meals.  Think of affordable meals as well, spaghetti, whole chicken, veggies, rice, etc.  When you go to the store stick to the list do not detour from it not only will it get your through the store quicker, it will keep your from impulse buying.

Home Repairs
If you own a home, you may realize how quickly you can add up cost in maintenance and repairs.  Save money by prioritizing what needs to get done.  Do the things that are in really in need of doing like your roof is leaking, put off things like remodel the bathroom if money doesn’t allow it.  You just may have to wait until next year to do some of the things.  If you hire a contractor to do work offer to pay them in cash if they cut you a discount; if they accept don’t pay it until the job is complete and you have inspected it.  Try buying second hand home appliances, look in classifieds and online fore cheaper deals, this can save you several hundred dollars.

Save On Clothes
Money is a really one of the number one reasons people can be in debt.  Really cut back your cloths shopping, you going have to do some second hand and discount store shopping to save money.  Clothes have a 90 percent mark up in most department stores, so consider yourself a real sucker every time you shop there.  Sell old clothes you don’t wear anymore before making other purchases.  Also try and avoid fads, because you will purchase something, that you probably won’t wear again next year.  Try and get classic pieces you can mix and match and don’t go out of style.

Save on Entertainment
Entertainment can be another money pitfall.  Avoid bars all together, they just suck away you money.  Instead try and have friends over to your home more often, plan a game night and cook some appetizers, this alone could save you several 100 dollars a month.  Also look for alternative means of entertainment such as free concerts in the park, or free days at the museums, which is usually on Tuesdays.  Drop your gym membership and take up a affordable sport such as running.

Conclusion
Yes you are going have to change your lifestyle a bit, but it is worth it to climb your way out of debt.  If you do manage to get out of debt, avoid backsliding and going straight back into your old ways.  You will soon learn that people can live on much less than they do and you will be happier not carrying around the weight of too much credit card debt.

Things To Try Before Filing for Bankruptcy

Most Americans are living paycheck to paycheck, usually making the bills meet at the end of the month.  In fact most people are one check away from being homeless.  Most individuals are facing huge debts, with high interest rates, if this sounds like you, then you are possibly considering bankruptcy as a solution.  Yes, bankruptcy can be the answer for some and even help erase away debts, giving them a fresh start.  Before filing though, make sure you have tried alternative options to bankruptcy.

Why try alternative options?

Well for starters, bankruptcy is not the quick fix everyone is always looking for.  It is a time consuming process that isn’t right for all.  Sometimes it can take up to 10 years afterward to even get a decent credit interest rate.  Another issue, with the new bankruptcy laws you may not even get approved.  This can come as a real blow to someone who is looking to bankruptcy as a cure all.  Before filing, try some of the options below; you may just be glad you did.

Reorganize your debt

If you have a lot of debt, one options is to try and reorganize or consolidate it.  This means you take all of you payments and hopefully combine them into one payment with a low interest rate.  There are plenty of debt consolidation companies out there that will help you try and do this.  Keep in mind that having a good credit rating is helpful and necessary to get the low interest rate.  If you credit rating is low, you may want to consider a different option, because you payment may be too high to afford.

Sell Everything You Can

It is all the gadgets and trinkets you purchased, that got you into this mess, in the first place.  Sell off what you can, electronics, cars, designer clothing, even your house.  Do everything you can to save money and lower you monthly payments.  Look to ebay and other classifieds for selling items; try to raise the money to pay off your debt.  Most importantly as soon as you receive money from selling something, it is important to use it to make a payment right away, before you go and spend it on something else.

Work More

Try to pick up more hours at your job, or overtime if it is offered.  Look into a second part-time job; too make some extra cash for a while.  Even ask your boss for a raise, if you have been with the same company for awhile, don’t hesitate to do this, it may be better then finding time for a second job.  Look to other people possibly living in the house, can they contribute any extra money for a while?

Talk to Your Creditors

Call and write everyone you owe money to, tell them you are planning to file bankruptcy, if they can not help you in some way.  A lot of credit card companies, will try and help, they want to get paid and if you file for bankruptcy they may not.  They can help lower your interest rate for a set time, or let you pay a smaller amount then what is due.

Talk to A Bankruptcy Lawyer

A bankruptcy attorney can go over the laws with you and let you know what your options are.  It is always good to talk with someone who is knowledgeable in the process, so you can be informed on what options may best work for you.

If you have tried everything on this list and still can’t make the payments at the end of the month, then it is time to consider bankruptcy.