Should I File For Bankruptcy?

Should I File For Chapter 13 Bankruptcy? Bankruptcy should be your last resort. Your should explore all of your options before doing a BK. You could consider debt settlement, debt consolidation, cccs or even a debt management program. Bankruptcy should be avoided especially for a small amount of debt. A bankruptcy will stay with you for up to 10 years as it is reflected on your credit report.

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Are there any options to bankruptcy? - bankruptcy questions

Are there any options to bankruptcy? If you are in over your head with debt and can't see the light at the end of the tunnel, you may want to consider filing a bankruptcy. Bankruptcy is a legal way to get a fresh start on life when things aren't going to well. There are consequences to filing a bankruptcy. A BK can stay on your credit report for up to ten years and you will probably pay more in interest for consumer purchases if you can even get credit at all.

What If I don't want to file for bankruptcy? Are there any other options to bankruptcy?

One of the few options to a BK is debt negotiation. I will tell you that you will need to put your time in. Debt negotiation is a process and you will need to be patient. Your creditors may not be willing to back off until they are paid. If you are willing to play the game you can save yourself a lot of money by doing a debt settlement program. Most consumers save anywhere from 40-60 cents on the dollar without any long term negative effects on their credit report.

How do I start a debt negotiation program?

Should I do credit counseling?

Should I do credit counseling? If you just want to lower your interest rates on your credit cards and you are in good financial condition, the answer is no. Joining a credit counseling program should only be if you are experiencing a financial crisis. You may be over the limit or have rolling late payments and are getting saddled with late fees and over the limit fees. Once you start this cycle, your creditors will raise your interest rates that are commensurate with the universal default rate that is in your credit contract. Once you start a cccs program the creditors will stop the over limit and late fees. You will also be given lower interest rates. The rates will depend on the creditor. They are all different. I like Bank of America in general. If you do join a credit counseling program, they lower their rates to 0%. Other credit card companies can be across the board when it comes to rates.

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What is bad debt?

What is bad debt? Bad debt to a company that is lending money, is money that is owed and not being collected. People who borrow money for various reason just stop paying. They may have lost a job, divorce or even a death in the family will halt a persons ability to repay a debt. A company when declaring it a bad debt, no longer has to count it as a receivable and they are able to write off the loss on their taxes.

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Will Bankruptcy stop a foreclosure?

Will Bankruptcy stop a foreclosure? Hopefully during the foreclosure process was in motion you tried to get the foreclosure to stop. You could have tried a loan forbearance, deed in lieu of foreclosure or a short sale. If you have tried these with no luck, you may want to consider a bankruptcy. You can either choose a Chapter 7 bankruptcy which is a liquidation bk or a Chapter 13 or wager earner bankruptcy. Once you file, the court should issue an order of relief which should include an automatic stay. With the automatic stay, your creditors must cease any contact with you and collection actions. This includes your mortgage company. This is not a free ride, you will have to act quick to work out something with the bank. Your lender can still ask for a motion to lift the stay so they can proceed with the foreclosure.

Can a bankruptcy stop a foreclosure?


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New bankruptcy law

Filing bk is an important decision to make. The impact of this decision will have great ramifications on the rest of your life. George Bush definitely stuck it to the people when he passed the new bankruptcy law in 2005. The new law was supposedly supposed to cut down on bk fraud and reduce abuse. If was a huge gift to the credit card companies. It made it a lot tougher for people to file for bankruptcy. There is no right way to decide whether you should file bankruptcy or not.

Alternative to Bankruptcy

What is bk?

What is bk? Bk simply means bankruptcy and if you are hungry Burger King. For personal finances you can file a chapter 13 or a chapter 7 bankruptcy. Filing bankruptcy is only for extreme financial circumstances when you debts have put you in a bad financial position. Consult with an attorney when you can no longer make your financial obligations.

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bankruptcy questions

What is a Section 341 meeting?

The section 341 meeting which is also call a meeting of the creditors, is a meeting that a debtor must attend afer a bankruptcy is filed. The meeting is orchestrated by the case trustee or the U.S. trustee. The debtor must go to this meeting and testify about his or her financial condition. The debtor will be asked about this information that has been placed on the bk paperwork. A creditor is allowed to attend the meeting and ask questions about the financial condition of the debtor as well. If the debtor fails to show up to the meeting, the bankruptcy case can be dismissed. Most states allow you to attend the section 341 meeting without an attorney. Massachusettes requires that you have an attorney. You are going to have to pay for this. There is no way around it.

Like all legal matters, consult with an attorney first before making any financial or legal decisions.

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What is a Chapter 13?

A chapter 13 bankruptcy is a type of bankruptcy filing in the United States that is commonly referred to as debt reorganization. If an individual can show ability to pay back some or all of their debts, this option may be the way to go. This can help you keep your home and car in a time of financial crisis.

Filing a chapter 13 bk will usually stop any legal actions against you from your creditors. Once you have Chapter 13 protection, they can no longer call you or sue you. It is up to the lawyer to take the calls and correspondence once the chapter 13 option has been chosen.

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What is a collection agency?

Collection agencies are companies that collect on past due bills. They collecting is either done by the original company that made the loan with you or they have an outside company do the collecting. Typically a third party collection company will often work on commission. They will receive a percentage of the amount of debt that they collect. Usually a debt collector is paid a small salary with a large commission incentive. This is why they may be very aggressive with you. They want to get paid. Typically you are going to get phone calls and letters which most likely will not be of a friendly tone. Their job is to scare you. The more they can scare you, the more money they can collect from you.

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What does BK mean?

BK is short for bankruptcy. It is a widely used acronym in the United States culture for the term bankruptcy. Not much more to say about this one.

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Should I stop paying my credit cards?

If you are considering debt negotiation and your are still current on your credit cards, technically you can't do it. You are still contractually obligated to pay your bills back. Be wary of the debt negotiation firm that just outright tells you to stop paying your bills and join the program. A debt settlement company that is operating within the limits of the law wont tell you to do that. The only person that can make the determination to stop paying your bills is you. Debt negotiation is only for hardship and not because you spent to much and don't feel like paying it back. What it is for is an alternative to a bankruptcy.

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8 Major Misconceptions About Filing a Personal Bankruptcy

Bankruptcy is a big step and can be quite helpful in the process of restoring your credit. Not filing a bankruptcy because of untruths about it can be a mistake. Read about some of the misconceptions of bankruptcy in this article. There is also great information about alternatives to bankruptcy as well.

Bankruptcy Alternatives

Tips for Debt Relief

There are many ways to get out of debt. In the heat of the battle options are not always obvious. This article lists some effective ways to manage your current credit accounts or obtain new ones. Getting out of debt is tough, but it does not have to be painful. Debt Negotiation, debt consolidation and debt settlement are great options. Knowing the right debt option to pick can be hard. These tips will definitely make your debt free journey much easier.

Aternatives to Bankruptcy

Debt consolidation loan – Things to think about when deciding

There are many ways to get out of debt. One option that is only available to a homeowner is a home equity loan or line of credit. This article is written from the perspective of a homeowner. For a renter, an equivalent debt consolidation loan would be a personal loan from a friend or family member or even a consumer finance company. Remember that a debt consolidation loan is still a debt. Like any debt it must be chosen wisely.

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5 Old-Fashioned Ways of Digging Yourself Out of Debt

In some respects, digging out of debt is not so glamorous. We have grown to love our modern conveniences, but these things have taken their toll on our pockets. For most of us, solving our debt problems requires no secrets, perhaps only some common sense and a reminder of what some of these conveniences cost us. Life does have a way of training us. Hopefully we can learn from our past mistakes that we have made with our money.

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Debt Consolidation As An Alternative To Bankruptcy

There it is again, the phone. You know that it is a bill collector, you just know it. It is dinner and they always call during dinner. You are at your wits end. You think that your next step is filing for Bankruptcy. Before you do, consider debt consolidation.

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Consumer Credit Counseling for Good Credit, Debt Settlement for Bad Credit

With many alternatives for getting out of debt, you need to do your homework before you choose a method. Typically, consumer credit counseling or CCCS is a great alternative for someone with great credit. But, debt negotiation is probably better suited for paying off bad credit accounts.

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Bankruptcy or Debt Negotiation - Both Explained - What To Do To Get Out Of Debt

Filing Bankruptcy got a little harder to do in 2005 when the US Bankruptcy laws changed. The laws changed to ensure that people who file legitimately have no way out. This article explains some of the highlights to filing a Chapter 7 bankruptcy in today's environment. Instead of Bankruptcy, Debt Negotiation might be an alternative.

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I Am Getting A Divorce - What Will Happen To My Assets and Debt?

Save yourself from filing bankruptcy when getting a divorce by using an attorney who understands how to split up your assets and debt. This article serves some basic guidelines about how your marital, or community property might be divided in the event of a divorce.


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