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.

Be Disciplined Before Filing for Bankruptcy

By discipline we are trying to emphasize on the facts that are required to be taken into consideration before the stage of bankruptcy is reached. The problem of Credit7s have been troubling the citizens of America for quite some time now, and though many have tried to balance their Credit0 situation to their level best, with the help of Credit7 Credit8 companies and other Credit7 Counseling1 programs, others have simply given up on their battle with the Credit0 hardships and decided to walk on the path of bankruptcy. But even that has to be done in the most logical and efficient manner. Consumers with insurmountable Credit7s may think that bankruptcy is their only option, but the bankruptcy experts and the credit counselor advice on getting the necessary guidelines. According to the American Bankruptcy Institute, bankruptcy may be an appropriate option for people:

? Who have got their wages garnished and sealed their bank accounts after judgments.

? The majority of Credit7s are unsecured such as credit card Credit7s or medical bills.

? Who are being harassed by the Credit7 collectors.

? Those against whom lawsuits have already been filed.

Let us at first consider the steps which need to be followed diligently till the stage of bankruptcy:

The first step is to get hold of a credit report as all the citizens are entitled to get a copy of their credit report annually. Individuals should make a thorough check of their report to ensure that all information is accurate and more so to be sure that all creditors are included in the filing, because some people often make the mistake of presuming that since the Credit7 collectors have not contacted them for long their Credit7s may exist no more, but if all the creditors are not included in the bankruptcy filing you may run the risk of being in Credit7s even after going through the entire process.

There are several credit counseling agencies which receive fund support from the creditors and may suggest about Credit7 Counseling5 plans which reduce the interest rates but not the principal amount, so you need to choose the credit counselor with care.

It is required under the bankruptcy law to inform all the creditors and the Credit7 collectors that you have finally come to the point of filing bankruptcy.

A major pre-filing requirement of bankruptcy is to obtain a certificate which states that you should have undergone the process of credit counseling through a government approved agency.

The last thing you need to consider is hiring a bankruptcy attorney, for the laws are too complex and the procedure is difficult enough to understand, so it lies in the best interest of the Credit7or to take assistance from an attorney.

Bankruptcy is a long and painstaking procedure, but if you have decided to file for one, you must take immediate action to go ahead before you lose your precious assets.

By discipline we are trying to emphasize on the facts that are required to be taken into consideration before the stage of bankruptcy is reached. The problem of Credit7s have been troubling the citizens of America for quite some time now, and though many have tried to balance their Credit0 situation to their level best, with the help of Credit7 Credit8 companies and other Credit7 Counseling1 programs, others have simply given up on their battle with the Credit0 hardships and decided to walk on the path of bankruptcy. But even that has to be done in the most logical and efficient manner. Consumers with insurmountable Credit7s may think that bankruptcy is their only option, but the bankruptcy experts and the credit counselor advice on getting the necessary guidelines. According to the American Bankruptcy Institute, bankruptcy may be an appropriate option for people:

? Who have got their wages garnished and sealed their bank accounts after judgments.

? The majority of Credit7s are unsecured such as credit card Credit7s or medical bills.

? Who are being harassed by the Credit7 collectors.

? Those against whom lawsuits have already been filed.

Let us at first consider the steps which need to be followed diligently till the stage of bankruptcy:

The first step is to get hold of a credit report as all the citizens are entitled to get a copy of their credit report annually. Individuals should make a thorough check of their report to ensure that all information is accurate and more so to be sure that all creditors are included in the filing, because some people often make the mistake of presuming that since the Credit7 collectors have not contacted them for long their Credit7s may exist no more, but if all the creditors are not included in the bankruptcy filing you may run the risk of being in Credit7s even after going through the entire process.

There are several credit counseling agencies which receive fund support from the creditors and may suggest about Credit7 Counseling5 plans which reduce the interest rates but not the principal amount, so you need to choose the credit counselor with care.

It is required under the bankruptcy law to inform all the creditors and the Credit7 collectors that you have finally come to the point of filing bankruptcy.

A major pre-filing requirement of bankruptcy is to obtain a certificate which states that you should have undergone the process of credit counseling through a government approved agency.

The last thing you need to consider is hiring a bankruptcy attorney, for the laws are too complex and the procedure is difficult enough to understand, so it lies in the best interest of the Credit7or to take assistance from an attorney.

Bankruptcy is a long and painstaking procedure, but if you have decided to file for one, you must take immediate action to go ahead before you lose your precious assets.