Understanding What Filing Bankruptcy Can and Cannot Provide for you

Filing for bankruptcy can help give you peace of mind when it comes to overwhelming debt. It can do a lot for your financial situation but there are some things it simply can not do. Learning what it can and can not do for you is important before you file bankruptcy. You may be disappointed thinking your whole slate would be wiped clean and in actuality it will not. Take a look at the things that bankruptcy filing can and can not do before you consider this route.

filing bankruptcy

What Can Bankruptcy Do For Me?

For those who have a great deal of credit card debt, bankruptcy can help you get rid of that debt or get it to a reasonable payment option. Credit card debt is usually unsecured loans which means that the creditor does not have a lien on any of your property. It can help you eliminate this debt which is typically a huge part of a person’s debt situation. This will also typically wipe out any other unsecured debt you may have. It will depend on which chapter you file.

It will also help to stop harassing phone calls from creditors. While trying to collect unpaid debts these callers can be quite nasty. It is their job to try and collect on the debt owed so they do what they can. Filing bankruptcy can help stop those calls and activities.

Filing for bankruptcy can also stop some type of liens but you have to make sure which ones by talking with your attorney. You do not want to assume something will be okay and not be taken away. You want to know what your options are and discuss them with your attorney before making a final decision.

What Will Bankruptcy Not Do For Me?

Bankruptcy will not stop child support or alimony payments from being due. No matter what type of bankruptcy you file you will still owe for these debts. You must pay them in full so you need to have a plan for those debts.

Bankruptcy will not stop certain property from being repossessed. It can eliminate the debt that you owe but your creditor can still take the property into their possession. So be prepared for your items such as your car to be taken away even if you file. The company can still pick it up but your debt will be cleared.

Your student loans are another example of items not covered under bankruptcy filings. In very rare cases they can be cleared but only if you show it causes you “undue hardship”. This is a very hard process to prove. You must show that you can not pay them now nor can you pay them in the future.

You will also not be able to get rid of tax debts in a bankruptcy filing. These debts will still have to be repaid even after clearing your slate of other debts.

The best route to take is to talk with your attorney and see what your plan of action should be. You can become more financially stable and start over if you decide to file for bankruptcy. Be sure to discuss which chapter you should consider filing and also consider all of your debts. If you do not list them in the filing they can not be cleared.

About the Author

Ashley recommends finding yourself good bankruptcy attorneys who have experience dealing with all types of situations. They can help you find the best route to take and get you on the road to financial freedom in no time.

Essential Steps To Take When Hiring a Bankruptcy Attorney

bankruptcy

When considering bankruptcy there are some essential steps you should take when hiring a bankruptcy attorney. Filing bankruptcy is an important decision and so is hiring the right bankruptcy attorney. You will need the best attorney working on your side and helping you through the process during this time. The bankruptcy attorney will work tirelessly to represent your interests in a bankruptcy court. They will help you understand the process and understand some of the more complicated aspects of bankruptcy.

Below are some essential steps in the process of hiring a bankruptcy attorney that you should be aware of.

Level of Professionalism

This is vital. The attorney should be very professional and provide you with prompt, reliable service that you can depend on. They should be dedicated and devoted to helping you with your case. You don’t want to deal with an attorney that acts aloof and uninterested which can lead to inaccurate information. Not only do you not want this, you can’t afford this to happen. Bankruptcy is a serious situation and the attorney needs to be serious about helping you. They should be on your side in order for you to get the best results. If your bankruptcy attorney is not professional, fire them and find someone else who is.

Number of Years

The attorney should be experienced. The longer an attorney has worked in the industry, the better and the more adept they are. They are also much more knowledgeable and are able to provide you with the best results. If you want the best result and have a successful outcome, you need an attorney that has experience. Do your research. Not every attorney is qualified or has the right experience needed. If they have worked on a bankruptcy case before, then they know what to expect and how to go about getting the best outcome.

Areas of Specialty for the Attorney

Most attorneys have a specialty. But many will work on a number of different areas. You want to go with an attorney who specializes in bankruptcy cases. This ensures that they are up to date on all the laws and regulations. They don’t have to spend a lot of time researching case law because they already are aware of the laws. If they choose to specialize in bankruptcy alone, they are going to be well-qualified to help you and they will have experience working with these types of cases in the past.

Background of the Attorney

Do thorough research on the attorney. Contact their associations. Ask family and friends if they know about the attorney. Have they worked in other areas of law? Attorneys that have experience with both prosecutions and defensive cases are going to know both sides to the playing field and be much better at providing the services they offer.

 

How To Claw Back Your Life After Being Declared Bankrupt

There are a lot of people out there who are struggling at the moment. We all have our own problems and some people have one of a more serious nature. If this is you and you’ve been declared bankrupt you shouldn’t worry about it. Now that it’s happened there is nothing you can do to change it and worrying about an irreversible event will only leave you more stressed out than ever before. What you really need to do is look towards the future.

Let’s talk about your credit because at the moment you know it’s not looking too healthy. Just because you have reached rock bottom doesn’t mean you have to stay there forever. Plenty of people have been in your situation before and they have picked themselves back up and climbed out of their hole. That is exactly what you’re going to do and to help you out we’re going to look at a few ways you can take control of your finances again.

Learn to budget

budget

You have let your finances get out of control once and you can’t afford to let it happen again. You will need to learn how to make a budget, but once you have one you need to stick to it religiously. There is no point in having one if you are going to spend money like crazy. Only buy the things you need and eventually you might end up with a nice amount of money in your savings account.

Pay on time

pay on time

It’s important that you always pay your bills on time. You have probably gotten used to the fact you don’t need to pay something on time, but look at the mess that got you into. Even if you have a very small bill it must be paid before the deadline. You won’t be able to fix your credit rating if you’re late all the time. This is one of the reasons why a good budget is so important.

Keep an eye on your credit report

purchase

When you are declared bankrupt you will start with a new slate. Your credit report will be poor for a few years while the bankruptcy is still on show, but you must make sure that it doesn’t get any worse. You never know when someone might make a mistake and you can’t afford for that to happen. If you do see anything wrong with your credit report that shouldn’t be there you can deal with it right away.

Don’t make big purchases

calculator
Once you have hit rock bottom it should be a wakeup call that you shouldn’t be spending crazy amounts of money when you can’t afford to. This doesn’t stop some people from making big purchases like a car. If you want to buy a car you should save up cash and get one you can afford. You don’t need to drive anything too fancy and you will save yourself from getting into more trouble.

Get some credit

You might be scared to try and get credit again, but you must because it can actually help your credit rating. You will be allowed to get some sort of credit card, even if it needs to be a secured one, so get it and use it. Just make sure you use it sparingly and always pay it off on time. When people see you are able to handle the responsibility it will help you out in the future.

You’ve messed up

You know you’ve messed up and it’s now in the past. Just make sure you change your ways and you can have a bright future. Millions of people are now living normal lives after suffering bankruptcy and you will too.

Adam Shaw is an bankruptcy law attorney in New York. He has credible experience when it comes to tackling financial matters and also gives valauble suggestions on these issues via his blog.

Fiscal Responsibility is Key in Avoiding Bankruptcy

When you’re struggling to get by, it can be astounding to read that many lottery winners in the UK go bankrupt.  While it certainly doesn’t account for a majority, several media outlets have projected that the percentage of bankrupt lottery winners is probably about one third.  While this may seem far removed from your own reality, there’s a lesson to learn here about managing money—and that’s applicable whether you’re rich or poor.

concept of bankruptcy
clock face, concept of bankruptcy, financial problem

Why do these rich lotto winners end up bankrupt? 

The main reason is that they spend the money on things they don’t need, and don’t take the time to think about the long-term ramifications of their purchases.  Sometimes they spend the money on things that are expensive to maintain, and which continue to cost a lot of money even after they’ve been bought outright (properties with high taxes, for example, or boats and other vehicles which require maintenance and insurance).  The money isn’t funneled into some purpose which could make more money—instead of thinking of the sudden windfall as an investment in their futures, these winners think of it as a license to spend freely without regard to the consequences.

How does this apply to a normal person who hasn’t won the lottery and who doesn’t have a lot of cash sitting around? 

These days a lot of people in the UK are becoming more dependent on short-term loans in daily life.  It’s a difficult economy to survive in, which is why short-term loans have become an attractive solution for many different problems.  Payday loans, also called cash advances, are some of the most popular products out there.  Payday lenders allow their customers to borrow a small amount of money for a short time period, usually under a month.  A payday loan can be approved in a matter of hours or days, whereas many traditional loans take much longer to process.

What’s the connection? 

Many low income customers who need payday loans perceive of them as a sudden windfall of cash.  When you’re sitting at home, trying to figure out where the heck you can get money from to deal with a problem, and you suddenly realize you can get it within hours or days online, it’s easy to believe that you have more financial freedom.  You really don’t, however—how you use a payday loan will determine whether it really assists you or whether it leads to more debt and more problems.

Just as many lottery winners go bankrupt because they spend their sudden windfall of cash on things they don’t need, a lot of low income customers use payday loans on things they don’t really need, because the loans seem like “easy money.”  Short-term loans come with high price tags however in the form of interest and sometimes fees.  Customers who take these loans out when they aren’t needed to get what they want and not what they need end up paying more in the form of interest, and customers who take them out but aren’t sure they’ll have the money to pay them back end up paying fees.

Some customers also get tempted to take out more than they need since lenders usually allow you to pick an amount.  There’s no reason to do this however since the result is just higher interest.  It’s best to only take out what is really needed and to pay it back as quickly as possible.  The timeframe is something else which may be flexible.  Taking out 200 pounds and paying it back in two weeks will cost you less than taking out 500 pounds and paying it back in a month.

Short-term loans can be a great asset to low income customers in the UK who have no other recourse to deal with the occasional emergency.  It’s important not to take out more than you need, though, and to save payday loans for real emergencies.  If a rich lotto winner can go bankrupt by spending money on frivolous things, just think how quickly you could go into debt if you’re poor and spend money frivolously.  Use payday loans responsibly and they can be your saving grace when they’re needed most.

This is a guest post from contributing writer John Szabo. John writes about all things finance, business and tech. This time he wrote for Poundaccess, the best in fast payday loans in the UK.

Key Issues To Consider Before Filing For Bankruptcy

If you are experiencing financial issues or if you are feeling overwhelmed by debt, the idea of bankruptcy may have crossed your mind. With the economy in the state that it is currently in, many people are experiencing financial problems. Some consumers have lost their jobs, and have not been able to reclaim their income even after consulting with a redundancy solicitor. Other consumers have gotten in over their heads with mortgage repayments, thanks to declining real estate values. A myriad of different scenarios may have brought you to your current financial situation, and luckily, there are several different routes out of these circumstances.

toward bankcruptcy
toward bankcruptcy

Get Expert Advice Before Declaring Bankruptcy

Before declaring bankruptcy, you should first consult with a bankruptcy solicitor. These professionals can advise you on the facts of bankruptcy itself. One of the first things that they will caution you about is that bankruptcy is permanent. Thus, if you file and give up ownership of your assets, there will be no way to reclaim those assets in the future. However, certain assets are exempt from bankruptcy, and you will not have to give up those assets when you declare bankruptcy. So that you can make a well informed decision, your solicitor will help you to determine which assets you may lose and which may be exempt.

Do You Qualify?
In addition to advising you regarding what would happen to your possessions, the right solicitor will also help you to determine whether or not your situation even qualifies for bankruptcy. Some individuals simply do not qualify for bankruptcy while others may qualify, but they instead find more attractive alternatives to bankruptcy. A skilled redundancy solicitor can help their clients to explore many of the alternatives that currently exist.

Can An Alternative Be Arranged Other than Declare Bankruptcy?

In some cases, solicitors can help debtors to negotiate voluntary payment plans with their creditors so that they can avoid a court case. Consumers who are interested in pursuing a more formal arrangement can work with their solicitor to create an Individual Voluntary Agreement, or IVA. These agreements set out a regular monthly payment plan that has been crafted around the consumers’ current and projected monthly income.

Although IVAs were popular for a long time, they are losing ground as economic analysts and others project that too many individuals will lose their jobs and not be able to keep pace with the proscribed payment schedule. Even with a redundancy solicitor, job loss situations are inevitable for many consumers. In lieu of filing an IVA, many consumers are now opting to file a Debt Relief Order, or DRO, instead. These arrangements are usually reserved for consumers who have less than a total of £15,000 of debt and who also have very few assets and not much money to pay their debts. Because a DRO is cheaper and easier to file than a traditional bankruptcy, there are growing in popularity. Because they are not reliant on projected income like an IVA is, they are not losing popularity like IVAs are.

Regardless of why you are in your current financial situation, you may be able to get out of it with the help of a bankruptcy solicitor. Rather than just helping you to declare bankruptcy, these individuals may also be able to help you find alternatives as well. Before jumping into a decision that is irrevocable, you should speak to a bankruptcy solicitor about your options.

This is a guest post by Lemon & Co – expert redundancy solicitors in Swindon. For more information on redundancy and bankruptcy, you can visit Lemon & Co’s website.

Top Ten Ways To Avoid Yourself Into Bankruptcy

Go Into Bankruptcy

In the modern era, even though the standard of living been improve very much, but still there are many people are struggling in making a living and most of them are just having insufficient financing to maintain their daily live.

concept of bankruptcy
bankruptcy

We can observe there are many people who are heavy in debt and some even facing for bankruptcy. In order for you to get avoid for such situation, you may want to read through this article to find out some ways for you to avoid for bankruptcy.

1. Without having a plan when come to emergency
Many people are living very close to their budgets boundary. If you only have money that able to cover your monthly expenses without putting some of your money into saving, where can you get money in case of emergency like if your house water pipes are broken and need to fix immediately? Or when you are having unexpected emergency medical bills without insurance coverage? Therefore, to avoid any mishap happen to you, it is essential for you to have a fund saving for emergency expenses. If you are not having any budget with your monthly income, then you should now check out which items are of luxury and of not necessity then cut them off so that you can have excess money every month to save for emergency use.

2. Spending money on big ticket items that you not really need
A lot of people like to buy big ticket luxurious items which they not really need. Many people are buying thing with impulse like when they see a cool trendy car on TV commercial, a picture of branded clothing on magazine or new tech electronics device at shopping complex. For these people, they should ask themselves whether they really need them before paying the money since these items just take away your money from your pocket and only can provide you a very short term of happiness but then will follow with long term suffer.

3. Giving expensive gifts for family and friends
This can be simply similar to the previous mentioned point. The significant variation is the fact that some people experience difficulty by not buying things for themselves, but with buying things for other people like their family members or friends. Selflessness is good, however it does not necessary to be too expensive for you to do thing like this. You also don’t want to let your family and friends to feel guilty by accepting your expensive gifts and caused you to filed for bankruptcy.

4. Pile up small expenditures
If you can’t save money every month and not knowing where actually all your money go, this is due to you didn’t keep any tracking record for all your expenses that carry with small amount of money. If you go to the grocery store to buy magazines and breads, having a lunch in a cafe, buying snacks on you way back home, all these will spent you for just a couple of dollars and you never bother to jot them down. However, in order to get a better picture on how you spending your money even these items are not really significant, you should keeping yourself a small booklet in your pocket or in your purse, or in your cellphones that come with organizer which is very common with today available phones in the market. Record all your minor expenses down so that you can keep track on your monthly expenses by knowing where actually all your money go.

5. Didn’t practice any saving habit
If you have try a lot of efforts to make money but end up finding you owe even more money, you should know there is something wrong and the saving habit might not be your cup for tea for you to do so. But, in order to keep you save for emergency, you should starting out by keep aside a small portion say $100 of your salary into a savings account every month. Once something unexpected happen and you are needing money to resolve it, you may not going to get too worry about since your saving account is having enough money to take care of such emergency and you don’t have to declare bankruptcy because of this.

6. Without keeping track of your money
What is the amount of money do you have in your bank account? How much money do you have for your savings? Have you pay back all your credit card payments? If you can’t have a clear answer for these 3 questions, chances are you are overspending with the money that you made every month.

7. High defaulting amount of money on your credit card
For many people, the debt that they have are most likely related to credit card overdue. The reason why people not able to pay back their credit card debt is many treating credit card as free money for them to spend without planning on how they to pay back later on. Another reason is due to the fact that most people don’t know about the rate of interest that they need to pay if their credit card debt is due. Therefore, it is better for those who can’t control spending to use cash to pay for all items that they buy instead of paying with credit card.

8. Allowing late fees to pile up
Almost everyone is ever experience with late payment for their bills. It is not a big deal for you to make late payment sometime. However if you are always paying your bills late, then the late fees and surcharges are going to pile up and sometime can be even more than the amount of the bill itself for the amount of money that you need to pay back.

9. Delinquency bills
This can be quite significant, but some people just totally ignore these. Once you didn’t make your payment on time back to your creditors, the creditors are having the rights to enforce collection action against you. However, if you really can’t make your payment on time, you should discuss with them honestly and most of the time they are going to be lenient by extend you a grace period for you t repay your debt.

10. Your expenses is much more than your earning
We should always keep this word in our mind: Always live below your mean. Even though this sounds so simple, but many people just not able to carry out such practice, its simple, but not that easy when come to practice. However, once you start practice such living after some time you are going to used to it and will start accumulate your wealth and the word of bankruptcy will leave your far far away.

Warning Signs You Could Be Headed Toward Bankruptcy

Millions of Americans each year find themselves in over their heads when it comes to credit. They have too much debt, and with no way to repay it, find themselves looking to bankruptcy as a solution.

toward bankcruptcy
toward bankcruptcy

If you are unsure whether you might be heading toward bankruptcy, there are some warning signs.

  1. If you have no health insurance or have inadequate coverage, you could be headed toward bankruptcy. One major health issue, and your medical bills could push you over the edge.
  2. You have maxed out your credit cards. You should use no more than 30 to 40 percent of your available credit at any one time. If you’re above that, you’re in trouble.
  3. If you are using your home equity loan or line of credit for things other than those related to your home, you may be in trouble.
  4. Living from paycheck to paycheck is never good, and if you are doing so, you could be at high risk for bankruptcy.
  5. You only pay the minimum balance due on your credit card bill each month.
  6. If you have a tax lien or foreclosure on your home, or your car or other property is repossessed because you can’t pay, you’ve lost your grip on your financial situation.

If you have lost your grip on your financial situation, you may be headed toward bankruptcy. But you can regain your grip and get back on track by following these tips.

  1. Don’t spend impulsively. If you have a problem with this, curb your spending by planning ahead. Don’t go to the mall. Eat at home, rather than eating out. If there are sales going on at your favorite stores, don’t go to those stores.
  2. Don’t use a credit card unless you have the cash to pay it off. And make it a habit to pay your cards off each month.
  3. Shred pre-approved credit card offers – don’t apply for new cards.
  4. Set a budget and stick to it, beginning as soon as possible.
  5. Only buy or rent the size home you need.
  6. Make sure you have enough medical, homeowners and auto insurance.
  7. Don’t make high-risk investments.
  8. Don’t co-sign for someone who has debt problems, or work with others who have questionable financial habits.

You can get back on track and avoid bankruptcy. Just take an honest look at where you are financially, make a plan, and then stick to your plan.

Used Car Bankruptcy Loans

Knowing Used Car Bankruptcy Loan

Used car bankruptcy financial loans are accessible to individuals who’ve lately filed for bankruptcy. There are lots of company businesses extending bad credit used car mortgage programs to individuals who’ve faced bankruptcy, foreclosure, and repossessions. Vehicle dealers themselves might supply the mortgage, or you are able to get it from other sources.

As soon as a individual is declared bankrupt, it’s essential for him/her to build up a brand new credit account prior to choosing to get a mortgage loan. The only method to enhance his credit score would be to sustain normal payments following bankruptcy. It’s suggested to hold back for a minimum of 6 months prior to applying for an additional mortgage. This really is simply because instantly following bankruptcy, the interest rate charged on auto financial loans is generally a lot greater than that for an typical mortgage. This, in turn, will improve your monthly vehicle payment. Nevertheless, having a sizable advance payment, it’s less complicated with regard to borrowers along with bad credit to acquire funding to get a utilized automobile.

used car bankruptcy loan

Applying for Used Car Bankruptcy Loan

Should you are getting the used car bankruptcy loan in the dealer himself, make certain to find the used car examined by a completely independent auto technician. When the dealer doesn’t encourage an appraisal from the vehicle, it’s a clear indication that the vehicle has some difficulties.

Rates for Used Car Bankruptcy Loan

Global financial predictions reveal that auto mortgage rates of interest are most likely to fall in long term. To acquire an auto mortgage is really a whole lot simpler nowadays, regardless of creditworthiness. You will find very several choices accessible for choosing an suitable lender for funding a vehicle. These days, not just are banks and credit unions supplying used car bankruptcy financial loans to individuals with flawed credit, so are numerous finance businesses. Applying to get a used car mortgage via the web can conserve cash and time. Numerous firms supply on the internet funding support with used car financial loans for individuals with bad credit.