Getting Your Credit Report Can Save You From Bankruptcy

This article explains a few things about bankruptcy, and if you're interested, then this is worth reading, because you can never tell what you don't know.

If you have bad credit are not really sure if your credit score is good or bad, you should get a copy of your credit score. The average person will have to get a copy of their credit report sooner or later if they want to get pre approved for a mortgage loan or a car loan. Getting a copy of your credit report can mean the difference between you getting approved or rejected. So many people these days do not think to check their credit report they try to get a loan and that can be a big mistake, and quite an embarrassing one at that. Your credit report will be able to keep you fully informed with how your credit stands.

An excellent credit report has a credit score that is between 700 and 800 which is the where your credit score starts. The average has a score of 650 and lower. These low credit scores are what keep many people from getting approved for credit cards, mortgage loans can car loans. If you are planning to own your own home one day, this can be a real problem. Smart people will get a copy of their credit report before they even seek a loan of any kind so that they can correct any mistakes that are made or so that they pay off some of the debts that are listed. Doing this before you seek credit can change the outcome of the application.

You can see that there's practical value in learning more about bankruptcy. Can you think of ways to apply what's been covered so far?

If you are interested in getting a copy of your credit report you can go to www.equifax.com for a complete copy, or any other website that will let your get you credit report. You can get a copy of your credit report from thousands of different online resources or you can get one directly from the government instead. Some websites will give you a free copy of your credit report for even more convenience, but many of the free copies are inaccurate or not detailed enough to fully understand them. It is best to pay for a copy of your credit report because at least then you can rest assured that the information is correct. Equifax will sell you a copy but it is also a trusted resource for credit reports.

Your credit report will be your best weapon in making sure that your credit stays good before you have to worry about being bankrupt. The best defense against declaring bankruptcy is to keep your credit in good standing in the first place. Having a copy of your credit report is the best place to start because you can correct any errors and know exactly where you stand and then fix it.

Now that wasn't hard at all, was it? And you've earned a wealth of knowledge, just from taking some time to study an expert's word on bankruptcy



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How to Maintain Good Credit

Are you looking for some inside information on bankruptcy? Here's an up-to-date report from bankruptcy experts who should know.

The majority of people these days rely a little bit too much on their credit in order to keep them living in the lifestyle that they are accustomed to. For many people their entire life seems to be run on a line of credit. This is all good but because credit has become such a life line to so many people, they have to resort to loosing almost the entirety of their paychecks from work just to keep their credit going.

Most people are either living with credit debt that is so high it prevents them from getting a home or a car, and others are working just so that they pay their credit limits with credit cards so that they live off of those credit cards until their next paycheck. People who live like this condemn themselves to this repeated cycle of spending and credit for the majority of their lives.

The information about bankruptcy presented here will do one of two things: either it will reinforce what you know about bankruptcy or it will teach you something new. Both are good outcomes.

Since most people begin to establish their credit line when they are young, they are predisposed to see the credit as free money. That is of course; until they realize that eventually they will lose it all unless they pay off these ridiculously high limits. It is not uncommon for people with high credit limits to try to fix the balance of one credit card by getting another one and making the payments with the new cards and vice versa. This is a dangerous game to play that usually results in multiple credit debts that have to be fixed instead of one.

Using credit is meant to be a help to you and your life, and not your primary means of supporting yourself. When you decide to get credit, you must do so responsibly. Ideally, you would only use your credit cards in an emergency, but that is rarely the case anymore. Thanks to online shopping capabilities, people are spending more money than ever on their credit cards. Credit is a very tricky thing that can destroy your entire life because it can put you so deep in debt that you can’t get out of it.

If you are already deep in debt because of your credit, you should visit your local debt consolidator for help. If you are just starting out with your credit, the best advice that can be given to you is to be responsible and never spend more between paychecks than you can afford to pay back in full. As long as you keep up on paying your creditors on time and keep a copy of your credit report or score, you can easily maintain excellent credit and avoid bankruptcy.


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Keeping Your Business Out of Bankruptcy

The best course of action to take sometimes isn't clear until you've listed and considered your alternatives. The following paragraphs should help clue you in to what the experts think is significant.

Business debt is the easiest debt to get into and the most difficult to get out of. Debt consolidation is an easy, effective way of making sure that a business has its cash flow available at a time when it needs it. There are many struggling businesses today that have borrowed large sums of money from lending institutions but have no way to pay them back. This happens either because of unprofitable operations, or because the company has grown more quickly than its operating capital.

Business debt consolidation from debt management firms helps companies in need manage their financial resources better and they are cheaper than CPA’s. Debt consolidation seeks to reorganize that debt in a more efficient method that will provide better cash flow for a company.

Consolidation allows the debts of a company to be combined into one sum rather than 20 payments. Using this large sum, debt management firms will act as managers of a client's debt and try to make it easier to pay off that debt.

You may not consider everything you just read to be crucial information about bankruptcy. But don't be surprised if you find yourself recalling and using this very information in the next few days.

Debt management firms can be more attractive than the traditional route of filing for Chapter 11 bankruptcy with the government. Filing for Chapter 11 causes an extreme amount of delays as well as costly expenditures. Before the Trustee will help a company with a debt reorganization plan, the company will have to hire professionals for debt consultation first. Time can also go to waste when a company is waiting for the Trustee to approve the plan which can take months to even years for approval. Some companies cannot afford to wait that long.

Business debt consolidation is a whole lot like college loan consolidations are. With college loans, the graduate can hire a professional organization to help him or her to combine his or her loans into a single sum, discovers a low, fixed interest rate, and pay off the debt in consistent amounts month by month, over a long time period. In the long run this helps the student save a great deal of money. The same is true for businesses and debt consolidation.

You can always get more business loans and credit cards but that will have the potential to put you even deeper in debt. It just makes sense that you would not want to make matters worse. Borrowing money can be helpful if you know that your profits will rise indefinitely, however since most business owners really don’t know, it is best that you seek to get some help from a credit union instead. It is just good sense. They work with you and not against you the way that a loan can at times.

It never hurts to be well-informed with the latest on bankruptcy. Compare what you've learned here to future articles so that you can stay alert to changes in the area of bankruptcy.

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Reasons to File for Bankruptcy

It seems like new information is discovered about something every day. And the topic of bankruptcy is no exception. Keep reading to get more fresh news about bankruptcy.

When you start declaring that you are bankrupt, what you are basically saying to your creditors is that you cannot possibly ever repay all of your debt. You will have to declare bankruptcy through a lawyer. If it so happens that your situation is a valid one, you are then freed of your debt. All the companies that you owe money now have no right to ask for it. This may sound awesome at first; however, it does have its draw backs as well.

Let me tell you one thing though, having something like a bankruptcy appear on your credit report for the next six to 10 years will not be even close to beneficial to you. It will sit there in big, bold, red letters in your credit report for a very long time. Because of it, you will have trouble getting credit cards, loans or making big purchases even though ironically, these may the very things that cause you to declare bankruptcy in the first place. If you can prove that you are making some real strides with your financial situation, you could find it less difficult to get financing but not very. However, it is a very good way to take financial responsibility of your own life. Not to mention, you will feel a great big burden being lifted off your shoulders.

Credit card companies and other creditors where you owe money really do have the right to say no to your bankruptcy claim. There are certain situations when they are very likely to do this too. If you just went on a vacation, made a big purchase, used a credit card when unemployed or spent money after consulting with a lawyer, you will look suspicious in their eyes and will likely be denied. It is always best to consult a lawyer or debt counselor before you really take the plunge and declare bankruptcy.

That's the latest from the bankruptcy authorities. Once you're familiar with these ideas, you'll be ready to move to the next level.


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Student Loans & Bankruptcy

Effective October 8, 1998, all educational loans became non-dischargeable in bankruptcy pursuant to 11 USC 523 (A)(8) of the Bankruptcy Code.

If a Chapter 7 bankruptcy case is filed, the student loan creditor will abide by the automatic stay, if one exists, and then, the creditor will be able proceed with collection efforts once the bankruptcy case has concluded.

If a Chapter 13 bankruptcy is filed, the student loan creditor will abide by the terms of the confirmed Chapter 13 plan. Upon completion of the Chapter 13 plan, the creditor will pursue the remaining principal, interest and collection costs which may remain on the loan. However, for as long as the debtor is paying on his Chapter 13 plan payments, he does receive the protection of the bankruptcy court from further collection efforts.

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Reverse Mortgages & Bankruptcy

Real estate secured by a reverse mortgage is an asset. The equity in that real estate asset is determined the same way as any other asset. Determine what the fair market value of the property is through appraisals or market evaluations, deduct the amount of the secured loan and factor in the cost of sale. Whatever amount is remaining is the equity or ownership amount of the real estate.

A trustee in a Chapter 7 bankruptcy case can liquidate real estate secured by a reverse mortgage if there is available equity above and beyond what a debtor can protect as exempt.

The trustee may have to pay the holder of the reverse mortgage a pre-payment penalty if one is provided for in the mortgage documents. In the case of real estate with significant equity, the pre-payment penalty will not deter a trustee from liquidating the property.

In conclusion, consider real estate property secured by a reverse mortgage to be an asset, subject to liquidation in a Chapter 7 bankruptcy case, just like any other case involving real estate.



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