Filing for Bankruptcy - Which Plan Is Right for You?

The majority of people who file for bankruptcy opt for Chapter 7, which wipes out most unsecured debts. (Unsecured debts are those that aren’t linked to specific property, such as a car or a house. So your mortgage is a secured debt; your credit card bills are unsecured.) Filing a Chapter 7 bankruptcy can mean you have to give up some of your assets (property or cash) to pay your creditors. In reality, most Chapter 7 filers aren’t required to give up anything, either because they don’t have any assets or because the property they have is “exempt” or protected from creditors. The exemptions vary by state, but they might include household furnishings, clothing, tools you need for work, retirement accounts, and some - or all - of the equity in your home.

If you want to keep property that isn’t exempt, you can still file for bankruptcy, but you typically must choose Chapter 13. Chapter 13 requires debtors to come up with a plan to repay all, or most, of their debts within five years. If they successfully complete their plan, they’re allowed to keep their property while having any remaining debts erased. Unfortunately, most people fail to complete their Chapter 13 plans, and their cases are either dismissed, allowing creditors to resume collection activities, or converted to Chapter 7s.

A bankruptcy filing can make sense if any of the following apply:

You can’t pay back most or all of your unsecured debts in three to five years.

You don’t have much equity in a home or vehicle or much other property to speak of.

You do have considerable equity in a home or vehicle or other valuables that wouldn’t be exempt in bankruptcy - jewels; family heirlooms; valuable artwork or collections; or stocks, bonds, and cash held outside a retirement plan - but you’re willing to agree to a Chapter 13 repayment plan rather than a Chapter 7 liquidation.

Bankruptcy might not make sense if any of these apply:

You could repay your debts within five years.

Most of your debts are the kind that can’t be wiped out. Debts that typically can’t be erased include student loans, child support, and recent taxes. You might still decide to file so that you can free up more money for these debts, but the disadvantages of filing might well overwhelm the advantages.

You defrauded your creditors by hiding assets, say, or lying about your income or debts on a credit application.

You recently ran up large debts buying luxuries, which can include vacations and entertainment. If you did so while you were clearly broke, that can constitute fraud. If you ran up the bills and then lost your job, you might be able to file for bankruptcy on other debts, but the luxury debts might not be wiped out.

You want to file a Chapter 7 liquidation bankruptcy and received a discharge for a previous bankruptcy filing within the past six years. (You can file for a Chapter 13 repayment plan bankruptcy at any time.)

Innovis: The Credit Report You’ve Probably Never Heard Of

Did you know that there’s a fourth credit bureau of considerable influence in this country? The company is called Innovis, and you might want to contact Innovis and find out what information this company is reporting about you.

As recently as 2003, Innovis denied that it was actually in the credit-reporting business. There are numerous published reports in which the company flat-out denied that the information it gathers or sells about consumers could be used by creditors for the purpose of extending credit. Shortly thereafter, consumer advocates - like the Public Interest Research Group (PIRG) - starting insisting that Innovis was in fact a credit bureau and should have to abide by the same rules as other credit agencies.

After some outside pressure and scrutiny, Innovis now acknowledges that it is, indeed a credit reporting agency. According to published reports, Innovis primarily collects negative information about consumers: things like late payments, judgments, bankruptcies, collection accounts, repossessions, and so forth. That information is then sold to banks and other financial institutions. Well, if you do get credit offers, you certainly want them to be the best ones available, like low interest rate balance transfers, for instance.

But when companies buy data from Innovis, reportedly what they are screening for is people with “bad” credit - or at least people who used to have bad credit. This can have two effects on you. First, it would screen you out of the lists of top-tier consumers who are getting low-interest credit offers. Second, it makes you open game for getting a host of credit offers you probably don’t want to get. Think about it for a minute: If a bank or credit card company is actively targeting consumers with poor credit histories, what kind of credit offers do you think they’ll be making? More than likely, they’ll be throwing out high interest-rate offers - above the 20% level - or solicitations for “secured” credit cards.

Again, if you’re already considered a “sub-prime” borrower, you don’t want to get these offers. So make sure you write Innovis and find out what information the company has about you.

Unlike the other credit bureaus - that let you get your credit report online or talk to representatives over the telephone, Innovis doesn’t make it easy to establish contact. The only way you can obtain your Innovis credit report is by writing the company.

To get your Innovis credit report, send them a letter asking for your credit file. Be sure to include your name, current address, and social security number. Innovis also requires your previous address for the last two years if you haven’t been at your current residence for two years, your date of birth, a copy of your driver’s license or a utility bill to verify your address, your telephone number, your current employer, and your signature.

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Is Chapter 11 Bankruptcy For You

If your business is having trouble and you need to file for bankruptcy your lawyer will most likely suggest a chapter 11. A chapter 11 begins with you filing a petition with the court. You will also have to state a reorganization plan for the business in order to settle your affairs.

A chapter 11 is used to reorganize a business whether it is a corporation, partnership or other business entity. You will also have to hire a lawyer if you do not already have one to help you file the appropriate paperwork. The U.S. trustee will be overseeing your case. They will monitor your business to see if you are implementing the plan you filed and may even conduct a meeting with your creditors to come to an agreeable solution.

With a chapter 11 it is appropriate for the company to look at the value of their assets as a total business against the value of the individual parts. It may be that the total value of the business is more than the individual value, which is when a chapter 11 can be filed. A larger company may offer to buy out your business to save you from a chapter 11 bankruptcy or you may end up reorganizing it yourself and speaking with the creditors.

Depending upon the complexity of your case you could be out from under the bankruptcy in as little as three months or it may take years of the courts and your time to reach an agreement. During a chapter 11 bankruptcy any assets will be counted as value and may end up being sold if your creditors cannot find an agreement.

If you have any stock on the market it may be unlisted once you file for a bankruptcy to protect the stockholders and anyone else who may wish to invest in your stock. You have other alternatives if you believe a chapter 11 bankruptcy will not work for you.

You can file either a chapter 7 or chapter 13 bankruptcy, but again you will need to speak with a lawyer about, which bankruptcy will be the best option for you and your business. Most individuals are not subject to bankruptcy when their company is a corporation or partnership. There are businesses where the owner is also liable for the debts owed and in this case they may also be filing bankruptcy as part of the business. Chapter 11 is a very difficult bankruptcy to understand because of the intricacies of reorganizing the business.

You can also find more info on Avoid Bankruptcy and Bankruptcy Alternative. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.

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Personal Bankruptcy in Manchester, England

Here are some basic facts to consider up front before making a declaration of bankruptcy in Manchester:

- If you have any significant assets, or can make significant payment from your income, then you really should first consider the option of initiating a IVA (Individual Voluntary Arrangement). It should be noted that you must receive the cooperation of a minim um of 75% of your creditors for this to happen. This will end chasing letters, stop court actions, allow you a discourse to bankruptcy, and remain a private matter.
- If you file bankruptcy, you will stop paying most of the creditors that you owe. However you will stay have to pay:
a. Child support
b. Student loans
c. Mortgages and loans on your home
d. All debts taken on after bankruptcy
e. Social security debts can still be taken from benefits


- Some (few) bankruptcies of a straightforward nature will be discharged within twelve months.
- A “trustee” will deal with you concerning all issues of you bankruptcy.
- You are normally permitted to retain the following:
a. Tools
b. Books
c. Vehicles/equipment needed for your work
d. Clothing
e. Bedding
f. Furniture
g. Essential household equipment

- If you own a home and there is equity in it, you can be forced to sell. This is even true if you are a joint owner. The other owner(s) equity cannot be taken. Basically, if your equity is substantial enough to at least cover the costs of the sale, pay the trustee’s costs, and pay something to your creditors, then your house will get sold.
- You are normally allowed to stay in your home for up to one year while establishing new residence.

There are of course many other conditions and stipulations involved with bankruptcy in Manchester. If you live in Manchester you can phone Debtline (Manchester Advice) on 234 5678 for further advice on this.

Written by Victor Smithston. Find more information on Personal Bankruptcy Manchester

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Filing Bankruptcy In Canada

Bankruptcy is a scary word. Although bankruptcy provides debt relief, it also conjures up images of losing your home, no hope of rebuilding credit, and other unpleasant thoughts.

Let's address those concerns with an analogy. Do you remember going to see the doctor when you were a child for your yearly check-up? You dreaded getting jabbed in the finger for a blood sample, but before you knew it, it was done and over with and the sting went away. One can think of the bankruptcy process in the same way - you dread filing for bankruptcy and expect it to be painful, but before you know it your debts are gone and you've moved on with your life.

The bankruptcy process has the objective of rehabilitating the debtor, so that he can become a productive member of society without the burden of crushing debt. The bankruptcy system also ensures that all creditors are treated fairly and get an appropriate share of any debtor assets. Therefore, you should be aware that the bankruptcy system exists to work for you as well as your creditors.

The Bankruptcy Process

The bankruptcy process is governed by a federal statue called the Bankruptcy and Insolvency Act ("BIA"). Under the BIA, the major steps in the bankruptcy process are:

• Meet with a trustee to evaluate your financial situation
• File an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy ("OSB")
• Attend two financial counselling sessions
• Meet with the trustee to discuss your discharge

Each of these steps will be discussed below.

Step 1: Meet with a trustee to evaluate your financial situation

Just as you would see a doctor to assess your symptoms when you're not feeling well, one sees a trustee in bankruptcy when experiencing great financial distress. The trustee's evaluation includes a review of your assets, debts and household budget (i.e., income and living expenses). Upon completing the evaluation, the trustee will give you options in dealing with your debt, including the option of bankruptcy.

Step 2: File an Assignment in Bankruptcy

Once you've made a decision to file for bankruptcy, the trustee prepares a legal document called an Assignment in Bankruptcy. By signing the Assignment, you are indicating that you are voluntarily filing for bankruptcy.

At the time you sign the Assignment, the trustee will explain that you have duties as a bankrupt individual. These duties are to:

• Disclose all of your assets and liabilities to the trustee
• Advise the trustee of any property disposed of in the past year
• Surrender all credit cards to the trustee
• Attend an examination at the OSB, if required
• Attend the first meeting of creditors (if a meeting is requested by the creditors)
• Advise the trustee in writing of any address changes; and
• Generally assist the trustee in administering the estate

The Assignment is filed with the OSB, a branch of the federal government that monitors bankruptcy and insolvency filings. Once the OSB receives the Assignment, it issues to the trustee a Certificate of Appointment, appointing him as the trustee of your bankruptcy estate. There are three things that happen once the trustee is appointed:

1. Once the Certificate of Appointment is issued to the trustee, you are legally bankrupt. At that point, your assets vest in the trustee (i.e., he becomes the legal owner) for the purpose of liquidation and distribution to your creditors.

In the majority of situations, you won't lose your assets, as Ontario law allows a bankrupt person to retain:

• Household furniture up to $11,300
• Personal effects up to $5,650
• Tools of the trade up to $11,300
• A vehicle valued up to $5,650
• Pensions
• Other special exemptions for farmers
• Certain life insurance policies and certain RRSPs

The trustee for the benefit of your creditors may sell other assets you have. However, in most cases arrangements can be made to allow you to keep assets that would normally be sold.

2. Wage assignments and garnishments are stopped, as well as most other legal proceedings against you.

3. You are required to keep track of your monthly income and expenses and may be required to pay a portion of your monthly income to the trustee. How much you have to pay is determined by the trustee based on guidelines set out annually by the OSB. These guidelines take into account the amount of your household income and the number of dependents.

Step 3: Attend two financial counselling sessions

During your bankruptcy you'll be required to meet with the trustee to discuss any potential non-financial issues that led to your filing for bankruptcy. For example, gambling, substance abuse, and marital breakdown are common problems in society that inevitably lead to financial hardship. In addition, the trustee will provide information to you on money management and ways in which you can rebuild your credit.

Step 4: Meet with the trustee to discuss your discharge

An important event in the bankruptcy process is obtaining your discharge from bankruptcy. Being discharged from bankruptcy essentially means that you are free of your debts (with certain exceptions - student loans, alimony/child support, fines for breaking the law, and judgments arising from fraud or physical/sexual assault, are not discharged), and that you are no longer "bankrupt" for legal purposes.

Your creditors, the trustee or the OSB have a right to oppose your discharge. Common reasons for opposing a bankrupt's discharge are:

• Failure to attend financial counselling sessions with the trustee
• Failure to make required payments to the trustee
• Failure to disclose all assets to the trustee
• Questionable transactions entered into by the debtor before or during the bankruptcy

If no one objects to your discharge and you are a first-time bankrupt, a discharge is automatically granted nine months after filing bankruptcy. If you are granted an automatic discharge, there is no court hearing and the Trustee sends you a copy of the discharge.

If your discharge is opposed, the Trustee sends a discharge application to the Court. The Trustee will advise you if you are required to appear in Court for the discharge hearing. At the hearing, the Trustee's report informs the Court of the circumstances surrounding your bankruptcy. The Court will then issue one of the following orders:

• Absolute Discharge: You are no longer responsible for debts incurred prior to bankruptcy (save for the exceptions noted above).

• Conditional Discharge: You may be required to pay a certain amount of money to your creditors through the trustee for a specified period (e.g., $100 per month for 24 months). Your discharge is subject to fulfilling the terms and conditions of the order. An absolute discharge will be granted when the specified conditions are fulfilled.

• Suspended Discharge: This could be an absolute discharge but there is a delay before it comes into effect or is reviewed again by the Court.

• Discharge Refused: The Court has the right to refuse a discharge in unusual circumstances.

If you have been bankrupt before, your discharge application is sent to the Court for its review and determination. There is no automatic discharge for a second-time or third-time bankrupt.

Who prepares my tax returns?

You must supply the trustee with documents to complete two income tax returns during the year in which a bankruptcy occurs. A pre-bankruptcy income tax return must be filed for the period from January 1 to the date of bankruptcy. A post-bankruptcy income tax return must be filed for the period from the date of bankruptcy to December 31.

Income tax refunds from prior years are an asset of the bankrupt estate and must be sent to the trustee. The trustee may request that refunds from the post-bankruptcy return be paid to the estate. Income taxes owing prior to the bankruptcy are discharged. Any amount owing on the post-bankruptcy tax return must be paid by the bankrupt.

Starting Over - Rebuilding your Credit

One concern for many individuals contemplating bankruptcy is the effect on their credit rating. Bankruptcy will bring a person's credit rating to an R9 with the credit bureau. It will remain so for 6 years after the bankrupt obtains his discharge, after which it will be deleted from the debtor's credit file.

Does this necessarily mean that you won't be able to get credit during this period? No, it does not.

Your credit rating is certainly an important factor in determining your credit worthiness. However, lenders will look at other factors such as your income and your ability to get a guarantor or co-borrower. There are also other devices through which you can rebuild your credit:

• Secured credit cards - Certain financial institutions issue secured credit cards. By providing a bank or trust company with a money order (usual minimum is $1,000) along with the credit card application, you'll be issued a credit card with a maximum credit line equal to the money order. For example, you submit a $1,000 money order along with the application form, and you are issued a credit card with a limit of $1,000. The bank has your $1,000 as security to ensure you pay your credit card balance.

• Mortgage brokers - If you are in the market for a home and need financing, a mortgage broker will shop around for the best mortgage rate avail able to you given your bankruptcy. However, due to your bankruptcy, the rate offered to you will usually be above current market rates.

Conclusion

Bankruptcy is ultimately a rehabilitative process that relieves a debtor from the burden of crushing debt and allows him to become a productive member of society. From the creditors' standpoint, the bankruptcy process provides transparency into the debtor's financial affairs and ensures that they will be dealt with in an orderly process.

Disclaimer This article is an overview of the bankruptcy process in Canada rather than a complete analysis. Before applying any of these suggestions, consult your professional advisor.

Victor Fong is a licensed trustee in bankruptcy with the firm of Fong and Partners Inc., a trustee in bankruptcy. Fong and Partners Inc. offers personal bankruptcy and debt consolidation services in Toronto, Canada. Since 1975, we've helped hundreds people from all walks of life get a fresh start in "Starting Over".

Victor can be reached at victor@fongpartners.com
You can also visit the firm's website at http://www.startingovertoronto.com

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How To Determine When Chapter 7 Bankruptcy Is Best

When many of us hear about bankruptcy, we think of the classic state of bankruptcy in the game of Monopoly. But bankruptcy is not a game. Rather, it is an entirely serious state of financial affairs that cannot be taken lightly. The bankruptcy laws are very complex, and even have bankruptcy experts arguing about the real meaning and intent behind the complicated rules and procedures that have been put into place.

There are various kinds of bankruptcy, both for personal and business bankruptcies, and each type is different. The various types are designed to strike a balance between meeting the needs of the creditors without doing more damage than what is absolutely necessary for the person who is filing bankruptcy. This article will outline the basics of the type of bankruptcy commonly known as Chapter 7 Bankruptcy, which is one of the more popular forms of bankruptcy.

Before we get into that, be aware that filing for bankruptcy is not a decision that should be taken lightly. The huge red flag stating that you have filed bankruptcy will appear on your credit reports for the next 7 to 10 years, and will haunt you with being denied credit as you try to rebuild yourself or your business, as well as being required to pay higher interest rates on credit for those creditors who are willing to "take a risk" with you. There are multiple alternatives to filing for bankruptcy, and each option should be fully considered before you decide that bankruptcy is your only or best option.

Chapter 7 bankruptcy is the type of bankruptcy also known as liquidation, where the person filing bankruptcy turns over all their assets to be sold (typically at an auction), and the resulting money is used to pay off or partially pay off all creditors. The reason this can be attractive to some people is that if the person filing bankruptcy has few assets to be sold off, so the remaining debts are discharged over a period of three to six months, giving that person a "quick start" to rebuilding their life with no debts.

If you have a larger amount of assets that could be sold to pay your debts, you may wish to consider a different form of bankruptcy, since most of those assets will no longer be available to you after you file bankruptcy and the proceedings move forward. Also, be aware that the bankruptcy laws vary, sometimes widely, from state to state, so the bankruptcy laws in your state may be different, and may even not allow you to file for this type of bankruptcy.

Your best bet – again, after investigating all possible options and alternatives to following through with filing bankruptcy – is to meet with a bankruptcy lawyer who is very familiar with the bankruptcy laws in your state, or the state in which you are considering filing. A good bankruptcy lawyer can look at your specific situation and make recommendations for your options, alternatives, and if appropriate, the type of bankruptcy that you should file in order to provide the most amount of benefit to you. There is a free bankruptcy evaluation form at our web site that will allow you to talk with a bankruptcy attorney who is local to you and familiar with the laws in your state.

Do not file bankruptcy in a vacuum. Make sure you know what you are getting into and what the ramifications will be. The bankruptcy laws are complex enough where doing it all yourself is not a good option, and you would be best advised to get some guidance from someone who knows the laws in your state.

For more information and resources about Chapter 7 Bankruptcy and to get a free bankruptcy evaluation from a lawyer local to you, please visit our web site at http://www.bankruptcy-data.com

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How To Choose The Right Bankruptcy Mortgage Loan

Bankruptcy should be considered a last resort option, and many people who have filed for bankruptcy say in retrospect that they wished they had more thoroughly investigated options other than bankruptcy at the time that they filed. But whether it was in retrospect or the fact that you did not have other viable choices at the time, the fact is that you did file bankruptcy, and now you are in a much better financial position and looking for a mortgage loan.

Just because you have filed bankruptcy does not mean you are exempt from getting a decent mortgage loan. In fact, quite the contrary, assuming you are willing to look a bit harder and look past the more traditional lenders that most real estate agents are familiar with using. There are now a multitude of bankruptcy mortgage lenders on the market. Like virtually anything else, if there is a demand for a niche service, someone will come along to properly fill that niche.

Many people view bankruptcy as allowing themselves to get a fresh financial start, but in reality, that fresh start is only the beginning of a new set of problems. Even after the bankruptcy proceedings have completed, you will likely find it difficult to get credit or a mortgage from the traditional lenders and credit card issuers. That is because the fact of bankruptcy stays as a huge red flag on your credit report for 7 to 10 years. Traditional mortgage lenders will probably consider you too high of a risk for a mortgage loan.

But there is hope. There are a variety of mortgage lenders who may be willing to write you with a mortgage loan, even with bankruptcy on your credit report. In fact, many of these companies are specialists in this regard, understanding that bankruptcy can be caused by a wide variety of problems, many of which were out of your control, and cannot be lumped into a "poor financial management" bucket.

Now with that said however, you need to approach this mortgage loan realistically. Even though these companies may be willing to write a mortgage loan for you in spite of your bankruptcy, they are going to want to see a positive track record of your financial obligations since your bankruptcy. In addition, the interest rate they will charge is likely going to be higher than what someone with AAAA credit would receive, but the ultimate good news is that you CAN get a bankruptcy mortgage loan.

You will want to seek out a specialist mortgage broker who is familiar with the companies that are willing to write this type of mortgage loan. This is going to require some special knowledge, and not every mortgage broker has the necessary knowledge, so be sure you are clear on your circumstances when you first visit the mortgage broker so that you can avoid wasting your time.

The mortgage broker should be able to find you multiple offers for a mortgage loan, which you need to examine carefully. You should pay particular attention to any additional service fees which they may want to assess, and then evaluate the offer to make sure it is really your best option.

For more information about finding a good Bankruptcy Mortgage Loan please visit our web site at http://www.bankruptcy-data.com/bankruptcy-mortgage-loan.php

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What Is The Filing Process For Bankruptcy

Did you know you could file your own bankruptcy papers? You can and many people do, but sometimes a lawyer might have some suggestions that you do not realize. If you do choose to file your own papers, be aware of the new laws about bankruptcy enacted in October of 2005.

Once you decide to file your own bankruptcy papers, you need to determine which chapter to file under and then understand all the guidelines associated with the chapter. The best thing to do is find out all the information about the chapters and what is needed to file that specific chapter of bankruptcy.

The filing process requires a great deal of paperwork and correct information. If you feel confident enough to take on this proceeding, you will need to have all your creditors, personal information and then file your papers with the court.

When the papers are file with the court, a court appointed trustee will be assigned to your case. This person will go over all the paperwork and check it for accuracy. After this process, the creditors need to be informed of your intentions to file for bankruptcy so they stop all collection actions against you until further notice. Next, you have meetings with creditors to work out an arraignment.

If you choose to have a representative take care of your financial affairs, such as a lawyer, you need to supply them with all the information needed to properly represent you in the proceedings. Once you decide on a lawyer, you will need to determine the legal fees before hand and plan on paying them before the completion of the file process and bankruptcy hearing.

Many states require you to file a deed called a homestead deed. Depending on the type of chapter you file you may need to file other papers as well. Possible other paperwork might include the reaffirmation agreements, objection exemptions, declarations of homestead and objections to discharge of all or some of the debt. There are many different things that need to be taken care of in the filing process and in some cases; a lawyer is more knowledgeable about these things.

If you choose to do a chapter 13 bankruptcy, you may pay your legal fees from your assets of your estate. If you file a chapter 7 bankruptcy, you cannot do this in any cases. Normally all fees are up front and the lawyer requests a percentage before starting all proceedings.

If you decide to file yourself, you will need to go for credit counseling and may choose a non-profit organization for free services. Then you will need to meet with the trustee to discuss what you can pay and how long you have to repay your debts. No one ever gets away without paying anything; the new laws protect everyone including the creditors from debtors that do not pay. Talk to a lawyer before deciding to represent yourself to find out some important information that you might not realize.

You can also find more info on Bankruptcy Attorney and Bankruptcy Code. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.

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Find Out the Alternatives You Have Instead of Filing Bankruptcy

No person in this society of ours is clean of financial disorders. These problems may affect the poor or the rich, going bankrupt, dissipating net worth, or unexpected emergency expenses.

Going through bankruptcy can be a horrible problem for anyone and can give you bad credit for a considerable amount of time. The whole idea of it will cause you to have a mid life crisis. So, you should think about all your options before filing for bankruptcy.

To avoid bankruptcy in your life, there are several things you should do first. Make sure you keep up with all the items you spend your money on. You should always THINK before you buy an item. Do you really need that item? Is that item going to help you increase your revenues in a measurable way? What would happen if you did NOT spend money on that item? If you are facing financial difficulties to the point where you are considering bankruptcy, these are the type of questions you need to be asking yourself before making virtually any purchase.

All your payments should be paid on time so you don’t have any late charges. As a primary guideline, your credit cards should be avoided as they are always pushing you to spend more then you can afford. The credit card companies are now sending you CHECKS you can use against your credit line, which is just offering yet another temptation to increase your debt.

Instead of credit cards, you should seriously consider using a debit card, since then you can only use the money in your bank account and you don’t ruin your credit. As a smarter shopper, you should look at all your options before you go out and get a credit card of some sort. You should always looks for the best deal when shopping for anything. While browsing, a little of planning might actually help you more so you know what you want and don’t go running up your bill.

Unfortunately, we live in an age where the mentality is one of "instant gratification", so we spend more for something we can buy from the office supply store today, instead of ordering the exact same thing online and getting it a few days later, but at 70% or less of what we paid at the retail store.

If you have already crossed that broke line, you should always thoroughly investigate all your options first before filing bankruptcy. The best and easiest way to fix your problems is talking to your creditors, like credit card companies and work something out for yourself, which always can be helpful to both sides of the problem. Making a deal or some bargain will help you more then you filing for bankruptcy. Many creditors will want to work some kind of deal out with you, as they will most always want to keep you as a customer. Believe me, they fully realize that if they are not cooperative and you are forced to file bankruptcy, there is an excellent chance that they will only see pennies on the dollar for your outstanding balance.

Another good way to rid of your problem is debt consolidation. It is much better to do this then bankruptcy any day. Debt consolidation will consolidate all your debts into one loan that you have to pay back reasonably every month. This is the best way for someone to settle all their debts since it will ease them financially and emotionally. The danger with debt consolidation is that now you have all your credit cards with a zero balance, where it will be a major temptation to go out and charge those cards to the hilt again, which will put you right back where you are today.

The bottom line is to do whatever you can to gain control of your finances. You may have to file bankruptcy but make sure you have checked out all the options available to you before you take what should be considered your last resort step.

To get more information about clarified that the fur of cats that have died naturally is used and did not Bankruptcy Alternatives and for a free bankruptcy evaluation from a bankruptcy lawyer who is local to you and knows the laws in your state, please visit our web site at http://www.bankruptcy-data.com

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Bankruptcy and Jobs

Perhaps the most important thing to do to get back on to your feet after filing for bankruptcy is to get a job. It is essential that you take up a job to have a constant earning and to show creditors that you are trying to re-establish your credit rating. However, there are various factors to consider before you take up a job after filing for bankruptcy.

Insolvency Amendment Act 2001, since the 2nd of May 2001, has tightened its reins on the employment methods of a person who has filed for bankruptcy. Before a debtor is discharged from his or her bankruptcy case, it would not be advisable for that person to manage a business. According to the amendment, it is now also illegal for a relative of a bankrupt person to employ the person. The same is applicable for a company or any organization that is managed or controlled in anyway by the relative of the person who has filed for bankruptcy. Therefore it is important for a debtor or the relative of the debtor to look into the details of this amendment in order not to be involved, for whatever reason, with an offence.


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Bankruptcy and Co-signers

Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.

Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:

• you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
• the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
• the co-signer is not the recipient of any benefits from the debt proceeds.
• the accurate bankruptcy plan payments are made in accordance with your bankruptcy.

When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.

http://www.bankruptcyhome.com/cosigners.htm