A bankruptcy is one of the worst experiences any person can go through. Most likely there have already been terrible things happen to cause the bankruptcy. On top of dealing with the first tragedy there is even more stress and sleepless nights with foreclosures and bankruptcy looming overhead.
People who are trying to survive bankruptcy are a lot like those that are lost in the wilderness. In both situations you’re trying to recover from having everything taken away from you. Just like surviving in the wilderness there are some guidelines that will help you survive after bankruptcy. This is still life and death.
Step One - Stay Positive.
In all the turmoil it’s critically important to stay mentally positive. Those that are lost in the wilderness and survive have one thing in common: they stay positive. Remember to stay calm, get your bearings, and think positive. Once you have your directions stay the course. Changing directions over and over will only get you even more lost. Find any clue that indicates your direction. Once you find your true north work very hard toward that direction.
Step Two – Avoid Excess Risk
When people get lost they are disoriented, confused, and make poor decisions. One of the poor decisions they make is taking on unnecessary risk. Many people have died in the wilderness while trying to climb a cliff face, cross barren wastelands, or swim turbulent waters. At the time these seemed like the only option to get where they needed to go. This is simply not true.
Avoid doing anything financially risky after bankruptcy. Betting everything you have in Las Vegas, starting a high-risk business, or buying lottery tickets with grocery money are all bad ideas. Remember, your purpose is to survive. Surviving takes patience. Being rescued right away doesn’t always happen so don’t expect it, or even worse, force it. Time and good judgment will bring you through.
Step Three – Be Creative With What You Have
A safety pin can save your life in a wilderness setting if you can catch fish with it. Most people that make it in a survival setting use anything they can find. They think outside the box and use every item creatively to make it work for them.
The same idea works in recovering from bankruptcy. After the process is final, most creditors won’t want to work with you. You need to start building good credit quickly. Use your car, your jewelry, or even some cash to use as collateral to get any kind of credit. A great place to start is by getting secured or bad credit credit cards. After you’ve got that card set it up on automatic payments and let it fix your credit on autopilot. Survival takes a lot of energy and patience. You will do great if you stay positive, avoid risk, and are creative with the things you already have. Good luck, you can do it!
Additional Resources: Bad Credit Credit Cards :: Programs to Consolidate Debt :: Credit Articles and Tips
http://ezinearticles.com/?Survive-After-Bankruptcy-Using-Wilderness-Survival-Skills&id=682017
Friday, August 17, 2007
Chapter 7 Bankruptcy - 7 Things to Know and Consider
The most common form of bankruptcy in the United States is Chapter 7 Bankruptcy. This form of bankruptcy is brought upon by the fact that the business or individual is unable to pay off the enormous amount of debt that the debtor owes the creditor.
Below are some items that elaborate and present informational facts on what you should know when considering filing a chapter 7 bankruptcy:
1. Chapter 7 Bankruptcy is the most popular form of bankruptcy.
The liquidation of assets that occur under the Chapter 7 Bankruptcy Code is the most common type of bankruptcy.
2. All debts are liquidated, except for various taxes and alimony payments.
When filing chapter 7 bankruptcy, the debtor should be aware that it is not an easy way out of all debt. There are certain exclusions involved. For example, the debtor will still be responsible for paying various taxes and will also be held liable for making alimony payments.
3. Once assets are sold to the creditor, the debtor is free of liability.
Free of liability is not entirely true. Chapter 7 bankruptcy filings do not eliminate all debt. In actuality, the creditor is allowed to liquidate all assets from the debtor once it is decided that the debtor is unable to pay off the debt that has been accrued. Once these assets have been liquidated and the creditor has been compensated, then the debtor is free from liability.
4. Other names for Chapter 7 Bankruptcy.
“Liquidation Bankruptcy” and “Straight Bankruptcy” are two common terms that are synonymous with the term Chapter 7 Bankruptcy.
5. It will show up on your credit report.
One of the adverse effects of filing for a chapter 7 bankruptcy is that the record will appear on your credit report. As a result, this will give you a bad credit rating that could affect your future.
6. Provides the debtor with a fresh start.
Although the adverse credit history that results from filing a chapter 7 bankruptcy can make future credit ventures troublesome, the fact remains that the elimination of pre-existing debt does indeed provide the debtor with a fresh start, free of owing any current debts or obligation of debt.
7. Chapter 7 Bankruptcy was once referred to as Chapter 8.
Chapter 7 Bankruptcy was once referred to as chapter 8.
If you would like more information and resources about the Chapter 7 Banrupcy, be sure to check out the great resources and information at: http://www.chapter-7-bankrupcy.com
In addition, you can greatly benefit learning about Chapter 13 as well. Learn more about chapter 13 bankruptcy at http://www.chapter-13.org.
http://ezinearticles.com/?Chapter-7-Bankruptcy---7-Things-to-Know-and-Consider&id=684316
Below are some items that elaborate and present informational facts on what you should know when considering filing a chapter 7 bankruptcy:
1. Chapter 7 Bankruptcy is the most popular form of bankruptcy.
The liquidation of assets that occur under the Chapter 7 Bankruptcy Code is the most common type of bankruptcy.
2. All debts are liquidated, except for various taxes and alimony payments.
When filing chapter 7 bankruptcy, the debtor should be aware that it is not an easy way out of all debt. There are certain exclusions involved. For example, the debtor will still be responsible for paying various taxes and will also be held liable for making alimony payments.
3. Once assets are sold to the creditor, the debtor is free of liability.
Free of liability is not entirely true. Chapter 7 bankruptcy filings do not eliminate all debt. In actuality, the creditor is allowed to liquidate all assets from the debtor once it is decided that the debtor is unable to pay off the debt that has been accrued. Once these assets have been liquidated and the creditor has been compensated, then the debtor is free from liability.
4. Other names for Chapter 7 Bankruptcy.
“Liquidation Bankruptcy” and “Straight Bankruptcy” are two common terms that are synonymous with the term Chapter 7 Bankruptcy.
5. It will show up on your credit report.
One of the adverse effects of filing for a chapter 7 bankruptcy is that the record will appear on your credit report. As a result, this will give you a bad credit rating that could affect your future.
6. Provides the debtor with a fresh start.
Although the adverse credit history that results from filing a chapter 7 bankruptcy can make future credit ventures troublesome, the fact remains that the elimination of pre-existing debt does indeed provide the debtor with a fresh start, free of owing any current debts or obligation of debt.
7. Chapter 7 Bankruptcy was once referred to as Chapter 8.
Chapter 7 Bankruptcy was once referred to as chapter 8.
If you would like more information and resources about the Chapter 7 Banrupcy, be sure to check out the great resources and information at: http://www.chapter-7-bankrupcy.com
In addition, you can greatly benefit learning about Chapter 13 as well. Learn more about chapter 13 bankruptcy at http://www.chapter-13.org.
http://ezinearticles.com/?Chapter-7-Bankruptcy---7-Things-to-Know-and-Consider&id=684316
Bankruptcy Alternative - What are the Alternatives to Bankruptcy?
There are some alternatives to filing for bankruptcy, but you have to carefully research them. You also have to see how they will specifically affect your individual situation before you commit to one of them. You do have to be very careful though as some of these so called alternatives will actually put you in a much worse situation then you are already in. Here are a couple of different alternatives you may want to look into before deciding to file for bankruptcy.
Some creditors will work with you to reduce the amount you owe. This is a common step before you decide to file for bankruptcy. You need to check the processes of the particular creditors though. Some of them will still require you to go through a formal process of debt reduction to do so. While you may think this is a good option, there are some hidden disadvantages you need to be aware of.
The IRS has the right to tax you on the amount you settled for as taxable income. By law creditors must report the amount of the difference between your debt and what you paid the creditor to the IRS. You will get a 1099 to report the information on with your taxes when you file. For example if you settle with a creditor by paying them 35% of the total you actually owe them, the IRS views the remaining 65% as income to you by the creditor.
The last think you want to do is end up owing a huge amount of money on your income tax. Most people who are in this type of situation don’t have the funds to pay in, and then end up with more debt. This is because they either have to borrow the funds or they have to pay it late with interest to the IRS.
A very common alternative many people choose instead of bankruptcy is debt consolidation. This is a loan where all of your bills are placed under one loan. This type of loan is likely to reduce your debt so your monthly payments are more affordable. Yet you may find out that this results in you having to pay more over the term of the loan for interest. In many cases it is much more than you would have paid to the credit card company on your own.
Many debt consolidation loans attach a balloon payment at the end of the loan terms. This means you will have to pay a very large amount of money at the end of the loan. Most people have no choice but to borrow more money to cover that balloon payment. If you choose any such bankruptcy alternatives, make sure they are really going to benefit you. Sometimes they can save you from having to bankruptcy attorney file for bankruptcy. Yet other times you will find that the alternatives available just won’t benefit your given situation.
If you found this information on bankruptcy alternative useful, you'll want to read this article about chapter 11 bankruptcy
http://ezinearticles.com/?Bankruptcy-Alternative---What-are-the-Alternatives-to-Bankruptcy?&id=688546
Some creditors will work with you to reduce the amount you owe. This is a common step before you decide to file for bankruptcy. You need to check the processes of the particular creditors though. Some of them will still require you to go through a formal process of debt reduction to do so. While you may think this is a good option, there are some hidden disadvantages you need to be aware of.
The IRS has the right to tax you on the amount you settled for as taxable income. By law creditors must report the amount of the difference between your debt and what you paid the creditor to the IRS. You will get a 1099 to report the information on with your taxes when you file. For example if you settle with a creditor by paying them 35% of the total you actually owe them, the IRS views the remaining 65% as income to you by the creditor.
The last think you want to do is end up owing a huge amount of money on your income tax. Most people who are in this type of situation don’t have the funds to pay in, and then end up with more debt. This is because they either have to borrow the funds or they have to pay it late with interest to the IRS.
A very common alternative many people choose instead of bankruptcy is debt consolidation. This is a loan where all of your bills are placed under one loan. This type of loan is likely to reduce your debt so your monthly payments are more affordable. Yet you may find out that this results in you having to pay more over the term of the loan for interest. In many cases it is much more than you would have paid to the credit card company on your own.
Many debt consolidation loans attach a balloon payment at the end of the loan terms. This means you will have to pay a very large amount of money at the end of the loan. Most people have no choice but to borrow more money to cover that balloon payment. If you choose any such bankruptcy alternatives, make sure they are really going to benefit you. Sometimes they can save you from having to bankruptcy attorney file for bankruptcy. Yet other times you will find that the alternatives available just won’t benefit your given situation.
If you found this information on bankruptcy alternative useful, you'll want to read this article about chapter 11 bankruptcy
http://ezinearticles.com/?Bankruptcy-Alternative---What-are-the-Alternatives-to-Bankruptcy?&id=688546
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