There are a lot of debtors using services designed to bring all of their debts together into a single payment. The problem with these services is the cost – you are often extending the period of all monies owed, and paying a higher interest rate. Sure, the monthly payment plan is lower, but the final [...]
There are some sectors of our society that have become so reliant on payday loans, it’s almost like addiction. It’s arguable as to whether or not payday loans provide a useful service. They are high interest loans taken over short periods of time and they tend to place more pressure on finances rather than relieving [...]
When a debtor is underwater, they will often try a number of avenues before facing bankruptcy. Sometimes, those avenues work and the debtor is saved from the perceived loss of face through bankruptcy. Some of the methods used do come with side effects that debtors need to be aware of. They also need to be [...]
The question on many people’s lips when discussing bankruptcy refers to future credit. In particular, how long they need to wait before they can apply for credit again. The answer often surprises them – you don’t have to wait one minute. In fact, under some circumstances, you can apply for credit while still going through [...]
Just because you have filed for bankruptcy, that doesn’t mean you will be ineligible for credit in the future. Some argue that, in the early stages post bankruptcy, you are probably one of the best credit risks going around. You are almost debt free and you’re desperate to improve your credit score – in that [...]
Believe it or not, there is life after bankruptcy, and that includes obtaining credit again. The first thing you will notice once you have been discharged from bankruptcy is that there is no longer any stress related to your debts. Your first aim should be to keep it that way. Your second aim should be [...]
If your petition for bankruptcy is successful under the provisions of a Chapter 7, you can expect this fact to stay on your credit history for up to ten years. This means that trying to obtain credit in the future may be a little difficult. Fortunately, mortgage loans are treated a little differently to standard [...]
Many view bankruptcy as an easy path to debt avoidance. However, if you value your financial reputation, then this process should be at the end of your list of options, not at the top. Bankruptcy can often be avoided if you are prepared to work at it. If you can successfully work your way out [...]
There has long been an argument that bankruptcy places a severe cost on our society so the rules should be toughened to make it harder for individuals to file for bankruptcy. There is no dispute that bankruptcy does cost our economy a lot of money, particularly when times are tough and bankruptcy numbers skyrocket. However, [...]
Having been through a fairly tough financial period, many individuals are watching their spending and playing things cautiously. For some, they are already looking at alternatives to bankruptcy, hoping to save their credit history before they run into trouble. These are the individuals that are living on shoestring budgets while they keep their debts current. [...]
There are several types of debt in today’s society that is proving to me a millstone. Mortgages, credit cards, health bills, and student loans are the top four forms of credit that appear to be causing the most grief in our society. If any of these forms of credit are causing financial hardship, then there [...]
Even though you are going through a bankruptcy hearing, it is still possible to apply for credit. However, this is restricted to those seeking relief under a Chapter 13 petition for bankruptcy. In most cases, applying for credit is done in order to facilitate a loan reconstruction. There are a number of issues that you [...]
There is a perception, and misconception, that debtors need to have high levels of debt to qualify for bankruptcy. In truth, although not generally in practice, if you have $1 of debt and no way to repay it, and your creditor is harassing you for repayments, then you would qualify for bankruptcy. I said it [...]
Here is a little known fact. In some cases, filing for and being discharged from bankruptcy, can actually improve your credit score. Most debtors are not aware of their credit score when they commence bankruptcy proceedings. If they did, they would probably be surprised at the before-and-after results. Consider the factors affecting your credit score. [...]
To be eligible to file for either a Chapter 7 or Chapter 13 bankruptcy petition the people named in the petition must undertake credit counseling. This must be undertaken in the 180-day period prior to filing and a certificate must be obtained from the counseling agency to verify your attendance. Counseling must be provided by [...]
After filing for bankruptcy and successfully navigating through to a discharge, the first thing on most people’s minds is how to repair their damaged credit scores. Unfortunately, there are those around who will play on this and effectively scam you out of hundreds, if not thousands of dollars. The end result is that your credit [...]
When considering a petition for bankruptcy under either a Chapter 7 or Chapter 13, you will need to check carefully with the requirements for filing. One requirement that many forget, or fail to understand, is that of credit counseling. This is a compulsory component and not one that can be “put off for another day”. [...]
When an individual files bankruptcy, the only debts cleared or dealt with are those related to the names on the petition. If someone has acted as a cosigner for a loan, they will generally still be held responsible for that loan. In effect, when a cosigner is involved, that debt is not considered as one [...]
When going through a bankruptcy process, your debts will be categorized in a number of different ways. Recentness and money owed are two categories often used, however, the major category, and the one that affects all your creditors, is whether or not the debt is secured or unsecured. Secured debt is any debt that has [...]
