Bankruptcy Can Provide Relief to Financially Troubled Generation Y

"Millennials," "Echo Boomers," "The Net Generation" and "Generation Y." Over 50 million American teens and twentysomethings strong, this age group has been called many things - and and the people who make it up are regularly predicted to be less successful and less Credit0ly well-off than their parents. As indicated in a recent report by the think tank Demos, many members of Generation Y are already in some degree of Credit0 difficulty due to high Credit7 load, minimal savings and limited job opportunities.

Even though many might consider themselves too young to consider it, filing for bankruptcy may provide members of Generation Y with a way out of seemingly insurmountable personal Credit7.

What is bankruptcy?

Bankruptcy refers to the judicial process determining the inability of an individual or organization (or "Credit7or") to pay back Credit0 obligations. The legal proceedings transpire in one of two ways: in an involuntary bankruptcy, creditors (e.g., banks, lending institutions) file a bankruptcy against a Credit7or to recover monies owed. More common are voluntary bankruptcies, where Credit7ors declare their inability to pay their Credit7s.

Bankruptcy allows Credit7ors facing Credit0 hardship an opportunity to start over and helps creditors collect what they are owed in an equitable manner.

Bankruptcy types and definitions

Those looking to file for personal bankruptcy most often choose to file under either Chapter 7 or Chapter 13 of the bankruptcy code. Each one has its own requirements and benefits and an experienced bankruptcy attorney can help you determine what is right for you.

Chapter 7 allows a Credit7or to liquidate his or her property and assets to settle Credit7s. A court-appointed trustee is tasked with valuing and selling the Credit7or's possessions and uses sales proceeds to pay down the accumulated Credit7s. Any remaining Credit7s are forgiven (or "discharged") by the creditors.

A discharge in bankruptcy ends the personal liability of a Credit7or for certain types of Credit7s. Creditors can no longer make any additional Credit7 collection efforts (such as telephone calls and letters) on any remaining balances.

Chapter 13 allows a Credit7or to reorganize his or her Credit7, which allows the Credit7or to retain some or all property and assets. Also called a "wage earners plan," this allows gainfully employed Credit7ors to pay back all or part of the accumulated Credit7 through a court-approved repayment plan.

It is important to note that while Counseling4 loans are non-dischargeable in bankruptcy - which means that they cannot be totally eliminated by filing for bankruptcy - they can be consolidated under Chapter 13.

Should I File for Bankruptcy?

The decision to file for bankruptcy can be a difficult one. No two cases are exactly alike and there are many factors a Credit7or should discuss with an attorney when considering bankruptcy as an option.

If the answer is yes to one or more of the following, you might be a candidate for filing bankruptcy:

• You receive regular telephone calls and mailings from creditors about missed and past-due payments
• You suffered a measurable Credit0 setback (i.e. unemployment, divorce, disability, illness)
• You are only able to pay the minimum amounts due on your outstanding Credit7s

An experienced bankruptcy attorney can provide more information about whether filing for bankruptcy is right for you and what alternatives may be available. If you or someone you love is facing Credit0 hardship, contact a lawyer experienced in bankruptcy today.

"Millennials," "Echo Boomers," "The Net Generation" and "Generation Y." Over 50 million American teens and twentysomethings strong, this age group has been called many things - and and the people who make it up are regularly predicted to be less successful and less Credit0ly well-off than their parents. As indicated in a recent report by the think tank Demos, many members of Generation Y are already in some degree of Credit0 difficulty due to high Credit7 load, minimal savings and limited job opportunities.

Even though many might consider themselves too young to consider it, filing for bankruptcy may provide members of Generation Y with a way out of seemingly insurmountable personal Credit7.

What is bankruptcy?

Bankruptcy refers to the judicial process determining the inability of an individual or organization (or "Credit7or") to pay back Credit0 obligations. The legal proceedings transpire in one of two ways: in an involuntary bankruptcy, creditors (e.g., banks, lending institutions) file a bankruptcy against a Credit7or to recover monies owed. More common are voluntary bankruptcies, where Credit7ors declare their inability to pay their Credit7s.

Bankruptcy allows Credit7ors facing Credit0 hardship an opportunity to start over and helps creditors collect what they are owed in an equitable manner.

Bankruptcy types and definitions

Those looking to file for personal bankruptcy most often choose to file under either Chapter 7 or Chapter 13 of the bankruptcy code. Each one has its own requirements and benefits and an experienced bankruptcy attorney can help you determine what is right for you.

Chapter 7 allows a Credit7or to liquidate his or her property and assets to settle Credit7s. A court-appointed trustee is tasked with valuing and selling the Credit7or's possessions and uses sales proceeds to pay down the accumulated Credit7s. Any remaining Credit7s are forgiven (or "discharged") by the creditors.

A discharge in bankruptcy ends the personal liability of a Credit7or for certain types of Credit7s. Creditors can no longer make any additional Credit7 collection efforts (such as telephone calls and letters) on any remaining balances.

Chapter 13 allows a Credit7or to reorganize his or her Credit7, which allows the Credit7or to retain some or all property and assets. Also called a "wage earners plan," this allows gainfully employed Credit7ors to pay back all or part of the accumulated Credit7 through a court-approved repayment plan.

It is important to note that while Counseling4 loans are non-dischargeable in bankruptcy - which means that they cannot be totally eliminated by filing for bankruptcy - they can be consolidated under Chapter 13.

Should I File for Bankruptcy?

The decision to file for bankruptcy can be a difficult one. No two cases are exactly alike and there are many factors a Credit7or should discuss with an attorney when considering bankruptcy as an option.

If the answer is yes to one or more of the following, you might be a candidate for filing bankruptcy:

• You receive regular telephone calls and mailings from creditors about missed and past-due payments
• You suffered a measurable Credit0 setback (i.e. unemployment, divorce, disability, illness)
• You are only able to pay the minimum amounts due on your outstanding Credit7s

An experienced bankruptcy attorney can provide more information about whether filing for bankruptcy is right for you and what alternatives may be available. If you or someone you love is facing Credit0 hardship, contact a lawyer experienced in bankruptcy today.

Bankruptcy and Your Credit Report

Bankruptcy is a situation most people dread to find themselves in although a majority of people out there are finding themselves in the mess of Credit0 woes. The increase in cases of bankrupt individuals and companies is linked to the recent recession in the world economy which led to people over stretching their budget or misusing their credit allowances. Those who are not bankrupt will find that they do not have any savings to their name.

Bankruptcy is very sensitive and could end up ruining your credit report. The bad credit report could remain with you for up to ten years after the filing of your case. This greatly lowers your credit rating and scores making it hard for you to get any form of funding when you most need it to rebuild your life.

It is important to understand that there are things that are not dischargeable even in your bankrupt position. Such things include child support, taxes and Counseling4 loans; hence the great need to make the payments as soon as you can. This is because a delay in meeting your obligations could continue to dent your credit report when the credit bureaus get to know about it.

You should be prepared to find it hard to do things you could easily do earlier when you have a ruined credit report due to bankruptcy. For instance, if you manage to get a loan to help rebuild your life, you could end up paying higher interest rates compared to other people with good credit scores. The same case applies when you are trying to get insurance as your premiums could be much higher as institutions feel the need to be cautious with you because of your bad credit history.

However, being bankrupt should not be viewed as the end of life but the chance to have a fresh start and correct past mistakes. There is no reason why you should shy off from asking for loans even with your low credit scores as there are institutions out there that are willing to offer you what you need. With the proper credit counseling, you will have all options of rebuilding your credit report laid out to you, making it easy for you to mend your loopholes.

Bankruptcy is a situation most people dread to find themselves in although a majority of people out there are finding themselves in the mess of Credit0 woes. The increase in cases of bankrupt individuals and companies is linked to the recent recession in the world economy which led to people over stretching their budget or misusing their credit allowances. Those who are not bankrupt will find that they do not have any savings to their name.

Bankruptcy is very sensitive and could end up ruining your credit report. The bad credit report could remain with you for up to ten years after the filing of your case. This greatly lowers your credit rating and scores making it hard for you to get any form of funding when you most need it to rebuild your life.

It is important to understand that there are things that are not dischargeable even in your bankrupt position. Such things include child support, taxes and Counseling4 loans; hence the great need to make the payments as soon as you can. This is because a delay in meeting your obligations could continue to dent your credit report when the credit bureaus get to know about it.

You should be prepared to find it hard to do things you could easily do earlier when you have a ruined credit report due to bankruptcy. For instance, if you manage to get a loan to help rebuild your life, you could end up paying higher interest rates compared to other people with good credit scores. The same case applies when you are trying to get insurance as your premiums could be much higher as institutions feel the need to be cautious with you because of your bad credit history.

However, being bankrupt should not be viewed as the end of life but the chance to have a fresh start and correct past mistakes. There is no reason why you should shy off from asking for loans even with your low credit scores as there are institutions out there that are willing to offer you what you need. With the proper credit counseling, you will have all options of rebuilding your credit report laid out to you, making it easy for you to mend your loopholes.

Bankruptcy and How It Affects Mental Health

Filing for bankruptcy can be an emotionally trying time for many people. Even though the stigma of bankruptcy has disappeared, to a certain extent, most people who end up filing still feel somewhat depressed and embarrassed that they had to go through it.

The number of people filing for bankruptcy the past year has exceeded one and a half million. The two most prominent reasons that people give for filing are loss of a job or ill health in the family that causes savings accounts to be drained. Either of these reasons could, by themselves, bring a person down emotionally.

The act of filing for bankruptcy is sort of the final emotional nail in the coffin where the person has to admit to himself that he has been a failure in managing the Credit0 resources for his family. According to many mental health experts, filing for bankruptcy can affect the mental health and stability of a large percentage of those people. This is because, for many people, their self image is wrapped up in their Credit0 success in life. And once they lose their Credit0 success, they also lose much of their self worth.

In the case of married spouses or couples, many times the emotional problems caused by the filing can exacerbate existing problems in the relationship. Money problems are already one of the biggest problems listed by couples in a marriage. Having to file for bankruptcy, takes those problems to another level. In fact, many times the only thing holding a couple together that is going through rough Credit0 times is that neither one has the money to move out on their own.

In the case of single people or people living alone, a bankruptcy filing can lead to severe depression. One that is likely to deepen if that person is unable to get a job or find another source of income. More and more you hear stories of homeless people with college degrees who are homeless because they ran into Credit0 problems. Because of depression, many have simply given up. After a period of being rejected for jobs, many simply drop out of society and no longer even attempt to find work any longer.

Bankruptcy is meant to give the person a new lease on life by eliminating many of his Credit7s. But, in order to start life anew, a person has to be in the right mindset. If he lets himself be taken over by feelings of shame, guilt, and a lack of self esteem, he may never recover his footing.

Filing for bankruptcy can be an emotionally trying time for many people. Even though the stigma of bankruptcy has disappeared, to a certain extent, most people who end up filing still feel somewhat depressed and embarrassed that they had to go through it.

The number of people filing for bankruptcy the past year has exceeded one and a half million. The two most prominent reasons that people give for filing are loss of a job or ill health in the family that causes savings accounts to be drained. Either of these reasons could, by themselves, bring a person down emotionally.

The act of filing for bankruptcy is sort of the final emotional nail in the coffin where the person has to admit to himself that he has been a failure in managing the Credit0 resources for his family. According to many mental health experts, filing for bankruptcy can affect the mental health and stability of a large percentage of those people. This is because, for many people, their self image is wrapped up in their Credit0 success in life. And once they lose their Credit0 success, they also lose much of their self worth.

In the case of married spouses or couples, many times the emotional problems caused by the filing can exacerbate existing problems in the relationship. Money problems are already one of the biggest problems listed by couples in a marriage. Having to file for bankruptcy, takes those problems to another level. In fact, many times the only thing holding a couple together that is going through rough Credit0 times is that neither one has the money to move out on their own.

In the case of single people or people living alone, a bankruptcy filing can lead to severe depression. One that is likely to deepen if that person is unable to get a job or find another source of income. More and more you hear stories of homeless people with college degrees who are homeless because they ran into Credit0 problems. Because of depression, many have simply given up. After a period of being rejected for jobs, many simply drop out of society and no longer even attempt to find work any longer.

Bankruptcy is meant to give the person a new lease on life by eliminating many of his Credit7s. But, in order to start life anew, a person has to be in the right mindset. If he lets himself be taken over by feelings of shame, guilt, and a lack of self esteem, he may never recover his footing.

Bankruptcy - A Guide

One of the most important things to say about bankruptcy is that it should always be considered as a last resort, after all alternatives have been explored.

However, it's important to say something about this idea of "last resort". True, bankruptcy is the most damaging thing you can do it your credit rating, and all other alternatives should be explored, but there is a difference between "last resort" and "delay". Many people confuse the two.

To give an example, it may be that your family or a close friend are willing to gifts you some money to get you out of a difficult Credit0 position. This is perfectly fine if the gift is acting as a sort of "bridge" to finance a gap in funding, but if it is simply money which, after it has been spent, will leave you in the same position then this is simply throwing good money after bad and bankruptcy should be considered. Another problem can be people taking out loans secured on their property, which will simply make the consequences of any bankruptcy worse than if they had claim bankruptcy before taking out the secured loans.

Fact of the matter is when your finances become as serious as this is very important that you talk to some sort of approved Credit7 counsellor or bankruptcy lawyer who can take an objective view of your finances and advise on the best course of action.

In any event, should you choose to file for bankruptcy, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act makes a compulsory for a Credit7or to undergo credit counselling from an approved counsellor within 180 days of filing bankruptcy. Cynics say that this is simply another hoop to go through to make it harder for Credit7ors claim bankruptcy, on the other hand it could be that effective credit counselling could show the Credit7or a way of avoiding bankruptcy and its consequences altogether.

Whatever chapter you decide to file under, doing so without the backup and help of a lawyer is not to be advised. The two most common forms of bankruptcy chapter 7 and chapter 13, with chapter 7 accounting for some 93% of filings and therefore being the most popular.

It is a requirement of filing under chapter 7 that the Credit7or undergoes what is called the Means Test. This is essentially a two-part test, with the first part of the test being the "Median Test", which compares your monthly income to the median income for households of the same size in your state. If your monthly income is shown to be less than the median you pass the Median Test and may file under chapter 7.

If you fail the Median Test you then have to take the means test. The Means Test is by no means a simple document, Blackfriars a great deal of calculation and a knowledge of the various Credit0 exemptions that you are allowed. The fact is, a good lawyer bought in early to your case can very often ensure that your finances are arranged in the best way give you the best possible chance of passing the means test.

Failure of the means test means that you will then have to file under chapter 13 bankruptcy.

The difference between chapter 7 and chapter 13 bankruptcy is that in a chapter 7 filing the court trustee liquidate all the Credit7ors assets and distributes the proceeds amongst the creditors. Any Credit7 left over is no longer the responsibility of the Credit7or, the remaining Credit7 considered to be "discharged". There is often a lot of talk about losing all of one's assets under a chapter 7 bankruptcy. Given various state exemptions and the fact that the court trustee is generally not interested in assets that cannot raise significant sums of money, it is uncommon for Credit7ors to lose much of their possessions. Indeed, over 90% of cases are considered to be "no asset" cases.

A chapter 13 bankruptcy however, they still require the sale of some assets, but will pay off as much of their Credit7 as possible for over a 3 to 5 year repayment plan. The amount is determined by certain rules and depends on the amount of disposable income that the Credit7or has. Again, the calculations can be complex and a bankruptcy lawyer should be employed for the same reasons as stated above. Have

In a chapter 7 bankruptcy, bankruptcy is usually discharged after around 70 days after the meeting of creditors. A chapter 13, notice of discharge is generally issued between 30 and 60 days after completion of the repayment plan.

The bottom line when it comes claim bankruptcy, three completely honest with your lawyer and the court as regards your Credit0 position, as any subsequent irregularities can result in your case being dismissed as a return to severe Credit0 hardship.

One of the most important things to say about bankruptcy is that it should always be considered as a last resort, after all alternatives have been explored.

However, it's important to say something about this idea of "last resort". True, bankruptcy is the most damaging thing you can do it your credit rating, and all other alternatives should be explored, but there is a difference between "last resort" and "delay". Many people confuse the two.

To give an example, it may be that your family or a close friend are willing to gifts you some money to get you out of a difficult Credit0 position. This is perfectly fine if the gift is acting as a sort of "bridge" to finance a gap in funding, but if it is simply money which, after it has been spent, will leave you in the same position then this is simply throwing good money after bad and bankruptcy should be considered. Another problem can be people taking out loans secured on their property, which will simply make the consequences of any bankruptcy worse than if they had claim bankruptcy before taking out the secured loans.

Fact of the matter is when your finances become as serious as this is very important that you talk to some sort of approved Credit7 counsellor or bankruptcy lawyer who can take an objective view of your finances and advise on the best course of action.

In any event, should you choose to file for bankruptcy, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act makes a compulsory for a Credit7or to undergo credit counselling from an approved counsellor within 180 days of filing bankruptcy. Cynics say that this is simply another hoop to go through to make it harder for Credit7ors claim bankruptcy, on the other hand it could be that effective credit counselling could show the Credit7or a way of avoiding bankruptcy and its consequences altogether.

Whatever chapter you decide to file under, doing so without the backup and help of a lawyer is not to be advised. The two most common forms of bankruptcy chapter 7 and chapter 13, with chapter 7 accounting for some 93% of filings and therefore being the most popular.

It is a requirement of filing under chapter 7 that the Credit7or undergoes what is called the Means Test. This is essentially a two-part test, with the first part of the test being the "Median Test", which compares your monthly income to the median income for households of the same size in your state. If your monthly income is shown to be less than the median you pass the Median Test and may file under chapter 7.

If you fail the Median Test you then have to take the means test. The Means Test is by no means a simple document, Blackfriars a great deal of calculation and a knowledge of the various Credit0 exemptions that you are allowed. The fact is, a good lawyer bought in early to your case can very often ensure that your finances are arranged in the best way give you the best possible chance of passing the means test.

Failure of the means test means that you will then have to file under chapter 13 bankruptcy.

The difference between chapter 7 and chapter 13 bankruptcy is that in a chapter 7 filing the court trustee liquidate all the Credit7ors assets and distributes the proceeds amongst the creditors. Any Credit7 left over is no longer the responsibility of the Credit7or, the remaining Credit7 considered to be "discharged". There is often a lot of talk about losing all of one's assets under a chapter 7 bankruptcy. Given various state exemptions and the fact that the court trustee is generally not interested in assets that cannot raise significant sums of money, it is uncommon for Credit7ors to lose much of their possessions. Indeed, over 90% of cases are considered to be "no asset" cases.

A chapter 13 bankruptcy however, they still require the sale of some assets, but will pay off as much of their Credit7 as possible for over a 3 to 5 year repayment plan. The amount is determined by certain rules and depends on the amount of disposable income that the Credit7or has. Again, the calculations can be complex and a bankruptcy lawyer should be employed for the same reasons as stated above. Have

In a chapter 7 bankruptcy, bankruptcy is usually discharged after around 70 days after the meeting of creditors. A chapter 13, notice of discharge is generally issued between 30 and 60 days after completion of the repayment plan.

The bottom line when it comes claim bankruptcy, three completely honest with your lawyer and the court as regards your Credit0 position, as any subsequent irregularities can result in your case being dismissed as a return to severe Credit0 hardship.

Avoiding Bankruptcy - Steps To Make This Simple For Everyone

Avoiding bankruptcy is something that people all over the world want to do and achieving this is not as difficult as you may believe. There are some essential steps that need to be done that will make this simple for you.

You have to be committed to doing all that is necessary to avoid bankruptcy. No one will be able to do this for you, so be sure you are prepared to take on doing these steps so you can have the maximum success possible staying away from this dreaded, by many, Credit0 solution.

The following are the steps that need to be done so you can easily achieve this goal:

1. Get some professional help - It is always smart to find some professional help, when you really want to achieve this goal. They know ways that anyone can use to help them avoid bankruptcy.

They can inform you of your options, so you will be able to find the best solution for you. For some people, bankruptcy may be the best solution, but this is something that the professional can help you determine.

2. Learn how to live within your own budget - Everyone only makes so much income every month. It is a great idea to learn how to live within the income you receive.

Setting up a budget is smart so you know where your money is going every month. This will also help you learn what extra money you have to work or play with each month.

Just learn how to live with the money you make and don't go over that because if you do, then you will be headed towards bankruptcy and not avoiding it.

3. Stick with debit cards and avoid credit cards - Credit cards are bad for so many people to use. If you are not making enough money every month to pay off the balance that you put on the card each month, then you can very easily end up with a lot of Credit7 you can't afford.

When you use debit cards, you can only spend the money that is in your account. This makes you pay attention to where your money is being spent. Plus, there are no interest rates attached to debit cards like there is with credit cards.

4. Learn good Credit0 Counseling5 - When you really want to avoid bankruptcy, you need to learn how to manage your finances. There are many ways you can learn how to do this.

You just need to be sure that you do take time to learn how to do it effectively because this is one skill that will help you throughout the rest of your life with your finances.

These are the most imperative steps to be taken that will help you easily avoid having to file for bankruptcy. Now that you understand how avoiding bankruptcy is not as difficult as it seems, you just need to get started using these steps so you can keep your future as Credit7 free as possible.

Alternatives to Bankruptcy

The prospect of bankruptcy is not an enviable one. It happens when one becomes insolvent. It can be triggered either by the individual or by any creditor owed more than ?750. Although it has the advantage of clearing ones Credit7s (excluding Counseling4 loans!) it comes with many disadvantages. Although Credit7s will be cleared you will have to pay as much of them as possible, consequentially you may lose personal assets such as your car and home. You cannot receive credit during bankruptcy and your credit rating may be adversely affected long after bankruptcy has been discharged (typically after one year). You will lose certain privileges such as the right to be a company director and perhaps most notably the stigma relating to bankruptcy can be very damaging for reputation and self esteem. Records of bankruptcy are public.

Evidently bankruptcy is something which one should be keen to avoid if possible, alternative options are considered below.

Individual Voluntary Agreements (IVA's)
This is the most common alternative and is a legally binding agreement. Essentially the Credit7or agrees with the creditor a payment plan to repay as much of the Credit7 as practicable over a specified period. This need not necessarily total the full amount owed. The creditor need not accept any proposal but usually will where it leaves them in a stronger Credit0 position then they would be if the Credit7or entered bankruptcy.

The avoidance of repercussions associated with bankruptcy is highly beneficial to a Credit7or. With an IVA there is usually no obligation to sell personal property as with bankruptcy. More control is possible with an IVA as it can be negotiated as opposed to being determined by a bankruptcy hearing. Successful completion of an IVA will be far less damaging to a Credit7ors credit rating. The public stigma of bankruptcy is avoided as details need not be published, the arrangement may be kept private. An IVA does not remove privileges like bankruptcy, for example it does not prevent you from acting as a company director. The main disadvantaged is that you will be obligated to make the repayments as agreed and could be doing so for many years as opposed to starting afresh.

If it is feasible an IVA is likely to be a far more satisfactory way of settling your Credit7s, however it is dependent on being satisfactory to the creditor.

Credit9 Counseling6
This usually involves a third party assisting with the payment of your Credit7s, it can help address issues such as poor cash flow by spreading the Credit7s over a longer period. However it is only really advisable for smaller Credit7s as charges can mount up quickly for larger ones, which in turn could make bankruptcy inevitable.

It may be that these potential alternatives are unsuitable. If you are in this unfortunate position click here for a summary of the process.

A Tip on When To File Bankruptcy

Over the past couple of years bankruptcies have increased dramatically as a result of the economic downturn. Many of us have enjoyed the cheap credit thrust on us from credit card companies and retail stores but as the Credit0 climate has changed we find that we can no longer keep our heads above water Credit0ly.

Is often thought the bankruptcy should only be filed as an absolute last resort. In some respects this is true, but sometimes one can spend a great deal of money, often through loans secured on our property, to delay claiming bankruptcy as long as possible, which is not a sensible thing to do.

The problem here is the fundamental difference between secured Credit7, (Credit7 that takes a portion of our property as collateral), and non-secured Credit7, otherwise known as consumer Credit7, for example credit card Credit7, which is given with no security requirement.

Over 90% of bankruptcy petitions in the US are petitions for chapter 7 bankruptcy, or straight bankruptcy as it is often called. This is because under chapter 7 the bankruptcy court trustee sells the Credit7ors possessions and distributes the proceeds amongst the Credit7ors creditors. Any shortfall in repayment to the creditors is written off and the Credit7or has no further liability for any outstanding Credit7, giving the Credit7or what is in effect a clean Credit0 start.

At least that's what most people think.

Because people think that they are going to lose everything in a chapter 7 bankruptcy, and they don't like the idea of a chapter 13 bankruptcy where they pay off what they can afford over a 3 to 5 year period, they continue to put off claiming bankruptcy whilst often borrowing heavily to keep them Credit0ly afloat.

Now it may well be that if someone is simply going through a rough Credit0 patch and simply needs an injection of cash to maintain them for a defined period after which they know they will be in a position to cover the Credit7 and restore their finances, then borrowing money for the short-term may well be fine. For example, if someone loses their job borrowing money may be fine to tide them over as long as they can get a new job.

However, if by borrowing money one is simply staving bankruptcy off, one is simply throwing good money after bad.

Let's go back to chapter 7 bankruptcy, the preferred type of bankruptcy for most people, and what I was saying about secured and unsecured Credit7.

The fact of the matter is a chapter 7 bankruptcy is primarily for those whose main type of Credit7 is non-secured, consumer Credit7. This is important because if like many people someone is struggling to pay just the interest on their credit card bills and the only avenue open to them is to take out some form of secured borrowing, such as a home equity loan, then that is the time to file for chapter 7 bankruptcy.

The point here is that credit card Credit7 (i.e. non-secured Credit7) can be discharged under a chapter 7 bankruptcy. A home loan (i.e. a secured Credit7) cannot. Therefore one should claim bankruptcy in this case when one can no longer afford to pay one's credit card bills. If that person delays claiming bankruptcy, takes out a home equity loan, then runs up further credit card Credit7 that they can no longer afford and then claim bankruptcy, they can have the credit card Credit7 discharged under a chapter 7 bankruptcy but will still have to pay the Home Equity loan. They are therefore then paying for a loan and have nothing to show for it.

The real point I'm making it, is that when finances get seriously difficult, one should always consult a bankruptcy lawyer before filing for bankruptcy. A bankruptcy lawyer can give specialist advice that can potentially save Credit7ors thousands of dollars.

Over the past couple of years bankruptcies have increased dramatically as a result of the economic downturn. Many of us have enjoyed the cheap credit thrust on us from credit card companies and retail stores but as the Credit0 climate has changed we find that we can no longer keep our heads above water Credit0ly.

Is often thought the bankruptcy should only be filed as an absolute last resort. In some respects this is true, but sometimes one can spend a great deal of money, often through loans secured on our property, to delay claiming bankruptcy as long as possible, which is not a sensible thing to do.

The problem here is the fundamental difference between secured Credit7, (Credit7 that takes a portion of our property as collateral), and non-secured Credit7, otherwise known as consumer Credit7, for example credit card Credit7, which is given with no security requirement.

Over 90% of bankruptcy petitions in the US are petitions for chapter 7 bankruptcy, or straight bankruptcy as it is often called. This is because under chapter 7 the bankruptcy court trustee sells the Credit7ors possessions and distributes the proceeds amongst the Credit7ors creditors. Any shortfall in repayment to the creditors is written off and the Credit7or has no further liability for any outstanding Credit7, giving the Credit7or what is in effect a clean Credit0 start.

At least that's what most people think.

Because people think that they are going to lose everything in a chapter 7 bankruptcy, and they don't like the idea of a chapter 13 bankruptcy where they pay off what they can afford over a 3 to 5 year period, they continue to put off claiming bankruptcy whilst often borrowing heavily to keep them Credit0ly afloat.

Now it may well be that if someone is simply going through a rough Credit0 patch and simply needs an injection of cash to maintain them for a defined period after which they know they will be in a position to cover the Credit7 and restore their finances, then borrowing money for the short-term may well be fine. For example, if someone loses their job borrowing money may be fine to tide them over as long as they can get a new job.

However, if by borrowing money one is simply staving bankruptcy off, one is simply throwing good money after bad.

Let's go back to chapter 7 bankruptcy, the preferred type of bankruptcy for most people, and what I was saying about secured and unsecured Credit7.

The fact of the matter is a chapter 7 bankruptcy is primarily for those whose main type of Credit7 is non-secured, consumer Credit7. This is important because if like many people someone is struggling to pay just the interest on their credit card bills and the only avenue open to them is to take out some form of secured borrowing, such as a home equity loan, then that is the time to file for chapter 7 bankruptcy.

The point here is that credit card Credit7 (i.e. non-secured Credit7) can be discharged under a chapter 7 bankruptcy. A home loan (i.e. a secured Credit7) cannot. Therefore one should claim bankruptcy in this case when one can no longer afford to pay one's credit card bills. If that person delays claiming bankruptcy, takes out a home equity loan, then runs up further credit card Credit7 that they can no longer afford and then claim bankruptcy, they can have the credit card Credit7 discharged under a chapter 7 bankruptcy but will still have to pay the Home Equity loan. They are therefore then paying for a loan and have nothing to show for it.

The real point I'm making it, is that when finances get seriously difficult, one should always consult a bankruptcy lawyer before filing for bankruptcy. A bankruptcy lawyer can give specialist advice that can potentially save Credit7ors thousands of dollars.

A Method To Keep Insolvency From Occurring To Your Loved Ones

For lots of, filing bankruptcy is a risky territory. For many, bankruptcy is a big no-no. But, you need to look at it in a different manner. A fresh start in life is what bankruptcy offers. Once they file bankruptcy, they would be relieved with the heavy load they are carrying for quite a long time. Though you try your best to shield your cash, there are aspects that can happen. When life gets hard, you should toughen up and file for bankruptcy though you don't want to.

When filing for bankruptcy, you have to be familiar in relation to the aspect you are getting into. It will be better if you start studying regarding the two sorts of bankruptcy. Under personal finance, the two sorts of bankruptcy are Chapter 7 and 13. You need to completely realize these kinds of bankruptcy so that you can choose which bankruptcy would do you better.

Settling of non-exempt material goods are permitted in chapter 7 bankruptcy. Reimbursement for your sum unpaid will be originating from the cash that you can get in selling these assets. The court will discharge all the balance that will stay after you have sold all belongings. A few of your resources should be settled; your house, car and other articles you utilize at work will be excused. In chapter 13 bankruptcy, you will be provided the opportunity to make your own compensation schedule that will be good for 3-5 years. You should start your payment timetable right after the submission to the court. You don't have to wait for the court's approval anymore. From time to time, creditors may threaten to confiscate your resources. If you don't want to lose your dwelling and other vital material goods, you can file an emergency bankruptcy.

It is impossible to have your possession foreclosed instantly. The foremost thing they would do is to send you a dispatch notifying you of their intended foreclosure. Use this time wisely; arrange the prerequisites: 3-page request and an information concerning your creditor. The completion of your prerequisites must just be 15 days. Within the span of 15 days, your creditors are forbidden to seize whichever of your assets. If they do so, they would really be charged with penalty. If you don't happen to complete the prerequisites on time, the court will release your case. And again, you are back to worrying concerning your belongings. Since 15 days seem such a short time, you won't probably meet the pressing target.

For lots of, filing bankruptcy is a risky territory. For many, bankruptcy is a big no-no. But, you need to look at it in a different manner. A fresh start in life is what bankruptcy offers. Once they file bankruptcy, they would be relieved with the heavy load they are carrying for quite a long time. Though you try your best to shield your cash, there are aspects that can happen. When life gets hard, you should toughen up and file for bankruptcy though you don't want to.

When filing for bankruptcy, you have to be familiar in relation to the aspect you are getting into. It will be better if you start studying regarding the two sorts of bankruptcy. Under personal finance, the two sorts of bankruptcy are Chapter 7 and 13. You need to completely realize these kinds of bankruptcy so that you can choose which bankruptcy would do you better.

Settling of non-exempt material goods are permitted in chapter 7 bankruptcy. Reimbursement for your sum unpaid will be originating from the cash that you can get in selling these assets. The court will discharge all the balance that will stay after you have sold all belongings. A few of your resources should be settled; your house, car and other articles you utilize at work will be excused. In chapter 13 bankruptcy, you will be provided the opportunity to make your own compensation schedule that will be good for 3-5 years. You should start your payment timetable right after the submission to the court. You don't have to wait for the court's approval anymore. From time to time, creditors may threaten to confiscate your resources. If you don't want to lose your dwelling and other vital material goods, you can file an emergency bankruptcy.

It is impossible to have your possession foreclosed instantly. The foremost thing they would do is to send you a dispatch notifying you of their intended foreclosure. Use this time wisely; arrange the prerequisites: 3-page request and an information concerning your creditor. The completion of your prerequisites must just be 15 days. Within the span of 15 days, your creditors are forbidden to seize whichever of your assets. If they do so, they would really be charged with penalty. If you don't happen to complete the prerequisites on time, the court will release your case. And again, you are back to worrying concerning your belongings. Since 15 days seem such a short time, you won't probably meet the pressing target.

5 Tips to Avoiding Bankruptcy

While every situation is different and sometimes bankruptcy is unavoidable, there are steps which can be taken both before and during a Credit0 crisis to increase your odds of preventing bankruptcy. Just as important as knowing what to do, however, is knowing what not to do. This article will address both angles and hopefully provide you with some concrete, fresh ideas which you can apply to your own life.

Nobody likes to think about their Credit0 problems. It causes stress, depression, and familial difficulties. Ignoring it, however, is not going to make it go away. Missing payments on credit cards and other types of revolving Credit7 can have catastrophic consequences. Balances can double or triple in the span of a few months thanks to increased interest rates and penalties. Cars can and will be repossessed in the middle of the night if payments are missed. Credit scores that were pristine for decades can be demolished in a couple of months. If you gain nothing else from this article, let it be this - don't ignore a brewing Credit0 crisis.

Budget Early and Well

If I had to choose one thing that would have prevented my clients from filing bankruptcy more than any other factor that was within their control, this would be it. People naturally get used to a certain lifestyle and loathe giving it up in the face of crisis. Do yourself a favor and nip this one in the bud. Realistically assessing your budget and trimming non-necessities may make the difference down the road between losing or keeping your home.

While plenty of books have been written on this subject and I will be happy to recommend some to those who ask, all you really need for this step is a pencil, a piece of paper, and a few months' worth of bills. Itemize your monthly income and expenses and leave room for cyclical bills and seasonal needs. Make sure everyone in your family is on the same page and review your expenditures weekly, at least for the first couple of months. Creating and sticking to a budget is not a fun experience, but the rewards you reap from the experience will pay off in spades.

Use Cash As Often As Possible

This step plays directly off of the previous one. If you have a solid budget in place, you should have no problem using cash or a debit card to take care of your expenses. Not only does using cash help to keep you accountable and reinforce your budget, it also prevents you from digging deeper into Credit7 and allows a credit cushion to build in case of a true emergency. No one likes to carry wads of cash around and I wouldn't recommend doing so. However, carrying a small amount of cash in your wallet or purse and bringing a little extra when necessary should not be terribly burdensome.

Pay Your Bills on Time

I touched on this in the opening paragraphs, but this is another area where I often see people making mistakes and suffering devastating consequences as a result. It is not uncommon for a person with great credit to see their interest rate increase by a factor of three for missing one credit card payment. Credit card companies have little sympathy in these situations and the increased interest rate can drag you down to bankruptcy like an anchor. I see it all the time. Again, if you have a good budget in place, this should not be an issue.

Aside from credit card Credit7s, late payments can also have a drastic effect on vehicle loans and home mortgages. Vehicle loan contracts typically have language in them which allow the lender to pick up your car and sell it shortly after a payment is missed. While some contracts provide grace periods, missing a second payment is a sure fire way to guarantee the repossession of your car, short of a bankruptcy filing. Most home mortgage lenders typically have a longer time scale and more regulatory hoops to jumps through before they can foreclose on your home for missed payments, but these payments ordinarily constitute the bulk of most families' monthly budgets and can be impossible to make up once they become derogatory.

No Payday Loans

These loans have become the scourge of our lending market for a number of reasons and luckily many states are rushing to keep them in check. Regardless, these credit arrangements are everywhere and are usually the last step taken by people in a Credit0 storm before they file bankruptcy. Not only do these lenders charge outrageous interest rates, sometimes compounding on a daily basis, they also put you at risk for criminal charges under the hot check laws. Do yourself a favor and examine every other lending possibility before you consider payday loans.

Know Your Rights

In my legal career, I have heard just about every myth spread and scare tactic used by creditors today. Whether that means you read up on the law yourself or consult with a local attorney, let the law work in your favor and don't let yourself be taken advantage of by creditors and unscrupulous Credit7 Credit8 companies. Read through every contract you sign and do not be afraid to ask tough questions. Ignorance may be bliss, but not when you realize that the area directly above the signature line on your business loan included a personal guarantee which now means you and your marital property are liable for that failed company venture that your partners bailed on. Better yet, after paying on your car loan for seven years you may find out that the title is not being released to you because you defaulted four years earlier on a line of credit through the same bank that was cross-collateralized with your car loan.

If you have any doubts as to what you are signing, let an attorney review it for you first. Most attorneys charge a minimal fee for doing so and the process can save you a bundle down the road.

Conclusion

In short, budgets are good, payday loans are bad, ignorance is not bliss, and cash is king. Pay your bills on time and cut your expenses while it still makes a difference. I hope these notes have been helpful and I welcome any feedback, constructive, critical or otherwise.

While every situation is different and sometimes bankruptcy is unavoidable, there are steps which can be taken both before and during a Credit0 crisis to increase your odds of preventing bankruptcy. Just as important as knowing what to do, however, is knowing what not to do. This article will address both angles and hopefully provide you with some concrete, fresh ideas which you can apply to your own life.

Nobody likes to think about their Credit0 problems. It causes stress, depression, and familial difficulties. Ignoring it, however, is not going to make it go away. Missing payments on credit cards and other types of revolving Credit7 can have catastrophic consequences. Balances can double or triple in the span of a few months thanks to increased interest rates and penalties. Cars can and will be repossessed in the middle of the night if payments are missed. Credit scores that were pristine for decades can be demolished in a couple of months. If you gain nothing else from this article, let it be this - don't ignore a brewing Credit0 crisis.

Budget Early and Well

If I had to choose one thing that would have prevented my clients from filing bankruptcy more than any other factor that was within their control, this would be it. People naturally get used to a certain lifestyle and loathe giving it up in the face of crisis. Do yourself a favor and nip this one in the bud. Realistically assessing your budget and trimming non-necessities may make the difference down the road between losing or keeping your home.

While plenty of books have been written on this subject and I will be happy to recommend some to those who ask, all you really need for this step is a pencil, a piece of paper, and a few months' worth of bills. Itemize your monthly income and expenses and leave room for cyclical bills and seasonal needs. Make sure everyone in your family is on the same page and review your expenditures weekly, at least for the first couple of months. Creating and sticking to a budget is not a fun experience, but the rewards you reap from the experience will pay off in spades.

Use Cash As Often As Possible

This step plays directly off of the previous one. If you have a solid budget in place, you should have no problem using cash or a debit card to take care of your expenses. Not only does using cash help to keep you accountable and reinforce your budget, it also prevents you from digging deeper into Credit7 and allows a credit cushion to build in case of a true emergency. No one likes to carry wads of cash around and I wouldn't recommend doing so. However, carrying a small amount of cash in your wallet or purse and bringing a little extra when necessary should not be terribly burdensome.

Pay Your Bills on Time

I touched on this in the opening paragraphs, but this is another area where I often see people making mistakes and suffering devastating consequences as a result. It is not uncommon for a person with great credit to see their interest rate increase by a factor of three for missing one credit card payment. Credit card companies have little sympathy in these situations and the increased interest rate can drag you down to bankruptcy like an anchor. I see it all the time. Again, if you have a good budget in place, this should not be an issue.

Aside from credit card Credit7s, late payments can also have a drastic effect on vehicle loans and home mortgages. Vehicle loan contracts typically have language in them which allow the lender to pick up your car and sell it shortly after a payment is missed. While some contracts provide grace periods, missing a second payment is a sure fire way to guarantee the repossession of your car, short of a bankruptcy filing. Most home mortgage lenders typically have a longer time scale and more regulatory hoops to jumps through before they can foreclose on your home for missed payments, but these payments ordinarily constitute the bulk of most families' monthly budgets and can be impossible to make up once they become derogatory.

No Payday Loans

These loans have become the scourge of our lending market for a number of reasons and luckily many states are rushing to keep them in check. Regardless, these credit arrangements are everywhere and are usually the last step taken by people in a Credit0 storm before they file bankruptcy. Not only do these lenders charge outrageous interest rates, sometimes compounding on a daily basis, they also put you at risk for criminal charges under the hot check laws. Do yourself a favor and examine every other lending possibility before you consider payday loans.

Know Your Rights

In my legal career, I have heard just about every myth spread and scare tactic used by creditors today. Whether that means you read up on the law yourself or consult with a local attorney, let the law work in your favor and don't let yourself be taken advantage of by creditors and unscrupulous Credit7 Credit8 companies. Read through every contract you sign and do not be afraid to ask tough questions. Ignorance may be bliss, but not when you realize that the area directly above the signature line on your business loan included a personal guarantee which now means you and your marital property are liable for that failed company venture that your partners bailed on. Better yet, after paying on your car loan for seven years you may find out that the title is not being released to you because you defaulted four years earlier on a line of credit through the same bank that was cross-collateralized with your car loan.

If you have any doubts as to what you are signing, let an attorney review it for you first. Most attorneys charge a minimal fee for doing so and the process can save you a bundle down the road.

Conclusion

In short, budgets are good, payday loans are bad, ignorance is not bliss, and cash is king. Pay your bills on time and cut your expenses while it still makes a difference. I hope these notes have been helpful and I welcome any feedback, constructive, critical or otherwise.