Credit Card Debt: Repair After Bankruptcy

Ah, credit card debt. You've asked yourself the question many times, "Will I ever get credit again?" The answer, although seemingly complex, is quite simple: Yes. You can have another chance at re-establishing your credit. Filing bankruptcy is the first intelligent step taken to wiping out accrued credit card debt. The next step you'll have to take is to repair your credit report. In order to do this, you'll need to develop great patience while you're re-establishing your credit, as these things do take time.

Two or three years after you've eliminated credit card debt by filing bankruptcy, you'll want to start rebuilding good credit. How, you ask? Apply for secured credit cards. Preferably cards without annual fees attached to them. Do your research on the internet to see what others have done in similar situations. If you come across an offer which looks to good to be true, it most likely is. Use discretion when giving out Social Security numbers and personal information online.

Start small. Don't expect anyone to hand you a $10,000 credit limit overnight. You've had a history of credit card debt, it's not going to happen. Make lenders trust you again. Make monthly payments in the full amount. Your payment transactions will determine how successful your new credit report will be. If you're late with payments you're heading in the wrong direction. You don't want to end up on the road to credit card debt or bankruptcy again, do you? Of course not.

The stronger your current financial condition is, the better candidate you may be for future credit. Convince lenders that you've left the past behind you. You've changed your ways. Show them how you've handled money since the bankruptcy. Prompt payments made in a full amount are very impressive to a credit lender. If you're denied a major credit card, don't get distraught. Try applying for a department store's line of credit or a card issued by an oil company. These are some small steps to a successful debt-free future.

It's also important to keep an eye on your credit report. Make sure that everything is accurate and appears is it is supposed to. Errors, which can go unacknowledged will only harm you in the future. Your local bank can give you a copy of your current credit report for a nominal fee. However, if you're a legal resident of the United States, you are eligible to receive free credit reports. Specifically, one credit report per year.

In 2005, the Federal Trade Commission announced that every United States citizen is eligible to receive one free credit report on an annual basis, regardless of where they live. This was wonderful news to Americans everywhere. To receive your free credit report, you must supply proof of your identity. Questions you may be asked will include: your name, address, social security number, and a personal question [for security purposes] that only you will know.

Nevertheless, be very careful. There's a wide number of companies who will promise free credit reports. But are they legitimate? Anyone can build a website and claim that they're a credit agency. Why risk giving out your personal information to a stranger? Identity theft has become increasingly popular. Don't fall prey to a fraudulent credit agency that you know absolutely nothing about. Do some background research on the company prior to using their services. If you can't find any information relating to their services they're probably not very trust-worthy.

Credit reports can be received online or through physical mail. Be certain that the company which is offering free credit reports is being employed by the FTC. Bear in mind, anyone can say they're affiliated with the FTC. Make sure that they're legitimate. Such a fiasco occurred recently on the internet. Thousands of people were taken advantage of when they filled out a form for a "free credit report." Don't give out your information to anyone but a trusted bank, a reputable mortgage broker, or an agency employed through the Federal Trade Commission.

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Bankruptcy Chapter 13 Basics

The US Congress passed a law that established a set of uniform laws to govern how bankruptcy was handled. These laws were situated under a system called the bankruptcy code. In this code there are chapters that refer to various issues in bankruptcy. One such chapter deals with allowing the debtor to start a new life whilst they pay off their future debts. This bankruptcy chapter 13 is one of the popular bankruptcy laws.

In bankruptcy you by and large need to find some way of surviving while at the same time you pay your creditors what you owe to them. This sounds like a civilized way of dealing with this matter but the truth is otherwise.

In most cases creditors will try to force you to give them the assorted amounts that you owe. This form of force payment can range from a simple letter to torment via phone calls and even visits from your creditors. With bankruptcy chapter 13 you have the best way of stopping this force payment and you are given a way to live again.

When you file for a chapter 13 bankruptcy you actually have protection against the creditors. Once a payment plan is setup and both parties agree, then there is nothing more the creditor can ask of you. They cannot change their mind and ask for more money. Again they may try, but you are now covered by the law and your agreed upon payment amount.

With a bankruptcy chapter 13 filing, for the person who has gotten into a debt which seems to be eating up their life's earnings, this law allows the person to find a fair way of paying off their debts.

The terms of repayment will need to be discussed with your creditors in your lawyer's presence. This way the terms of payment will be in conformity with a court sanctioned payment scheme. With this payment scheme your debts can be paid off with an amount of money that you can afford to spare from your monthly living expenses.

Make sure you take the time to understand and know what your monthly expenses are. Don't put yourself in a payment plan that you can't afford. Give yourself enough room to cover all your debts.

Once you have filed for bankruptcy chapter 13 your creditors are no longer suppose to talk to you directly about your credit claims. There is a ceiling period of five years for you to pay off any outstanding debts that you have. This is not set in stone so understand your state laws and ask the questions.

During the period of your bankruptcy chapter 13 gives the court the right to oversee how the repayment is progressing. Your interests for this entire time period will be looked after by your lawyer. There are other benefits that you can find with this bankruptcy chapter 13 law. So, be sure to ask your lawyer and the court system the questions you need answered.

In this law you will be able to get a full discharge option for your bankruptcy claim if you have managed to pay off of all of the outstanding debts. The other great advantage of bankruptcy chapter13 law is that anyone can file for bankruptcy chapter 13 as long as they have a steady income with which they can pay off their debts.

Don't be afraid or embarrassed about gathering information on bankruptcy or even filing. Just make sure that you handle it with care. Meaning get all your questions answered and if you file, pay your debt back promptly. And remember, it is a new start with the discharge option.

Bowe is the owner and operator of over 40 websites, providing rich and free information to the online community. Visit his Bankruptcy site and gather some valuable and free bankruptcy information.

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GM Bankruptcy

If General Motors were to file bankruptcy, it could change the world or would it? Yes a GM bankruptcy filing would change the world. Right now with all the over regulation it is amazing that any company can make money these days. I guarantee such a move would change the world. It would definitely wake up the Unions and the governments over regulation on our economic engine. In fact sometimes it seems we do everything to hold down our economy from screaming forward.

With all the over regulations in this country to start, grow and run a successful small business, medium size corporation or a multi-national conglomerate based in the US. Why do we attack and use regulations to slow down our economic might? Because folks it is the way it is deliberately set up. You see at every level we have placed rules and bureaucracy to slow ourselves.

The largest corporations in the World are constantly being bombarded by rules and regulations put in place by regulators and politicians. So they are forced to move the operations out of the country to reduce costs, raise prices and pay off all the politicians you can find, no matter what side, fund them, as you will need them just to do business in this nation.

It is interesting the talk now after the 3rd quarter loss at General Motors and how they may sell off GMAC. Right now with the housing boom getting ready to pull back and some over extended upside down foreclosures due to job losses in the downturn of the business cycle, that might not be a bad idea actually. It seems GMAC is going to have its own issues.

The Delphi Bankruptcy deal is a problem indeed, I too worry about the under funded pension costs and these out of control health care costs, as for a company like GM these are problematic issues to say the least. It is good that the Union has been cutting a little slack at GM these days. Ford is next and lay offs there will be big indeed.

Indeed a bankruptcy at GM would change the world, but why do we need such a strong signal as a wake up call when it is obvious that we need to fix the problems that are right their in front of us. We all should be thinking here, as all of this effects us one way or another and China is not getting any smaller so we better get on the stick and take care of business in real time. Think on this.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance in the Online Think Tank and solve the problems of the World; www.WorldThinkTank.net/

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If I declare Bankruptcy in Edmonton, Will I Ever Be Able to Borrow Again

One of the biggest misconceptions about filing for bankruptcy in Edmonton, Alberta, or anywhere in Canada, is that personal bankruptcy will eliminate your ability to borrow money in the future. This simply isn't true.

The only restriction on borrowing money is that while you are in bankruptcy (i.e. prior to receiving a discharge) you are not allowed to borrow more than $500 without informing the lender that you are in the middle of a bankruptcy. Once you are discharged from bankruptcy this requirement is removed. Now let's talk logistics.

Is every lender required to loan you money?

Of course not. No lender is ever obligated to loan anyone money, but as we all know, money is lent every day and often the situations are much riskier than those if a newly discharged bankrupt. You have to remember that the decision to lend money is based on a number of things including your credit history, your income, the stability of your income, the assets you own, the debt you carry and how much money you have available after you have paid all you monthly living costs.

The only item that is negatively affected by filing a bankruptcy is your credit history. In fact, as a result of filing bankruptcy some of the items considered now appear more positive, as your debt load should be almost eliminated, resulting in significantly more cash flow each month. So ultimately, the end result of filing a bankruptcy is that you are in a much less risky position than if you had not filed a bankruptcy.

Does this mean getting a loan after bankruptcy will be easy?

No, but we find that with a little work it is much easier than expected. After being discharged from bankruptcy your challenge will be to demonstrate to the bank that:

a) you are not in a risky position; and

b) you have learned from the experience.

How you address these issues will depend largely on your personal situation, but it never hurts to start with a frank discussion of the challenge you face in rebuilding your credit and the reasons why you are in the situation you are. This will enable you to discuss the bankruptcy, the issues that led up to the bankruptcy, and what you have done to prevent these issues from causing you difficulties in the future.

For further information about bankruptcy in Edmonton or anywhere else in Canada I suggest you contact a licensed bankruptcy trustee. Remember, each situation is unique, and as a result each situation requires an individually tailored strategy. With the help of a trustee you will be to develop a plan that will allow you to deal with your existing debt, develop strategies to prevent future difficulties, eliminate the unnecessary stress and get your life back on track.

Barton Goth of Goth & Associates Inc., trustees in bankruptcy based in Edmonton, Alberta, Canada works with individuals in financial difficulty to help them deal with their debt. Visit http://www.bankruptcy-edmonton.com for information about filing bankruptcy, and borrowing after your bankruptcy is over. Mr. Goth is also a frequent contributor to the Bankruptcy Canada Blog, Canada’s largest source of information about bankruptcy.

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The Bankruptcy Map

There are an increasing number of people who are being forced to the point where they have no option other than to declare bankruptcy. One thing that many people don’t realise is that different areas of the country have increased incidences of bankruptcy declarations. This is not to say that people should avoid moving to those areas of the country, but research should be done into the reasons why it is those areas in particular that have an increased rate of bankruptcy declarations. The number of different financial stresses that a person faces will vary from area to area throughout the country.

The fees and bills that you have to pay vary throughout the country as the service providers you can make use of are different throughout the country. The greater the amount you have to pay in bills, the greater the chance that you will end up bankrupt. This tells us that the areas in which financial stress are higher than normal are likely to be those areas where the number of bankruptcies increases faster than normal. The interest rates increases that occurred recently have also spurred people who were on the edge of financial problems into a declaration of bankruptcy.

Currently the research is showing that the greatest numbers of bankruptcies are occurring in areas to the south west. The reasons for this have not been completely clarified, but the trend is unmistakable and as such people should create a financial buffer to prevent them falling victim to the myriad of factors that combine to create a situation where a person has no option but to declare bankruptcy. There is little research so far that provides similar trends for IVA's, possibly because a lot of people are unaware of the frequency with which this alternative to bankruptcy is embraced.

There is also no indication of the number of people who have used bankruptcy mortgages to put themselves onto a sound financial footing in the aftermath of their declaration of bankruptcy. The bankruptcy mortgage can often get you out of financial problems and onto a sound footing if the money received from the mortgage is used wisely. If a person makes use of a bankruptcy mortgage in time, they may be able to prevent themselves having to declare bankruptcy at all. This can help people to enjoy a life of financial stability after the have eradicated the financial problems that were threatening to overwhelm them previously.

National Guarantee is reputable financial institution that is authorised and regulated by the Financial Services Authority. They specialise in Bankruptcy Mortgages, Remortgages, CCJ Remortgages as well as Adverse Credit and Self Cert Mortgages and Homeowner Loans. For further information visit: http://www.nationalguarantee.co.uk/

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