Credit Card Bankruptcy Information

Archive for November, 2009

Bankruptcy is a contentious word for a whole number of reasons. Firstly it relates to a situation whereby a Debtor not being able to satisfy or compound to his Creditors a suitable amount has to turn to the Courts for protection and at the end of the day everyone loses out.

Let me repeat this last fact lest it passes some by. In a Bankruptcy situation no one wins. It is a “lose-lose” scenario. The Debtors by and large lose almost everything he or she owns (unless they are very carefully advised) and the Creditors by and large lose their money because when the Courts, Bankruptcy Trustees etc take their cut there is usually only a dividend of mere pence in the pound at the end of the day.

I hope all petitioning solicitors and lawyers read this with care as they are the ones who are advising all of their clients to sue people for bankruptcy. It is a bit like loading up pistols left right and centre for a “Russian Roulette Fest” it gets nobody anywhere.

In fact having read the last paragraph in more detail I take back my comment about Bankruptcy being a lose-lose situation it’s not, the Lawyers and Accountants make a fortune out of their fees, no one else does.

But there is a hidden cost to all of this that no one is prepared to acknowledge and this includes the knock on cost of ill health brought about by the stress of Bankruptcy. It is the “sleeping elephant” (for want of a more suitable metaphor) in the corner of the room that no one wants to acknowledge but it is certainly there all the same.

Let us analyse part of that “ill health” that we referred to above and that is the area of High Blood Pressure. It is one of the few natural growth phenomena of the late 20th and 21st Centuries and now is assuming almost epidemic proportions. The stress and elevated blood pressure brought about by the comings and goings of bankruptcy and all of the shenanigans that ensue can be lethal and in some cases lead to fatal consequences.

Our Society is so powered by the worship of all things financial that in the “heated blood lust of debt recovery” we seldom stop to consider the hidden human cost to all of this. I have client who as well as his business career being well and truly finished (boy was he badly advised earlier on but that is another issue) but his health, or should I say ill-health, is such now that any job prospects he might have had are now well and truly finished.

Now let us consider who well and truly gains by any of this? The answer? No one and if I can make just one final point it is a plea to any Solicitors and Lawyers who may, just may be reading this article. When you advise clients to pursue matters to Bankruptcy, get your background research carried out properly, do your due diligence well and get it right because at the end of the day as well as well and truly losing the majority of your clients money (which statistics point out is most certainly the case) you also damage the health of the person at the end of the writ.

Do you know the sad thing abut the whole side of this? I bet there is not a Solicitor or Layer who really cares, as long as they get their bonus and their fees, who gives a damn about anybody else?

Stephen Morgan
http://www.articlesbase.com/finance-articles/the-hidden-cost-of-bankruptcy-110647.html

There must be a few valid reasons why you’d think of bankruptcy to clear out your ongoing problems. Everyone who’s in bad financial problem would like to know how to find a cheap bankruptcy lawyer. Here are easy ways of locating cheap bankruptcy attorneys online.

Web Resource #1:

Use Google Maps located in http://maps.google.com

Type the search phrase “cheap bankruptcy lawyers” in the search field. Add your city, state, and zip code to make the results more accurate. Click the “Search Maps” button or press “Enter” on your keyboard. Google will then give you a result of law firms that meets your search query. You will see a map with markers on it. Click any of the marker and you will see the actual address, web site address, and phone number. You can also do the above procedure using Yahoo! Local located in http://local.yahoo.com

Web Resource #2:

LexisNexis’ Martindale-Hubbell Lawyer Network located in http://www.lawyers.com

This is LexisNexis’ online version of Martindale-Hubbell comprehensive attorney directory. Use the “Lawyer Search” to find an attorney from over one million lawyers and law firms in their searchable database. Under the “Lawyer/Law Firm or Area of Law” input field type in ‘bankruptcy’. Type your city under the “City” input field and select your state. Remember to change the country to “United States”. Click the “GO” button and you should see your result of bankruptcy attorneys. If the results are too few, then you can widen your search criteria by removing the city on the search box. You can also use the adjacent towns close to you. Make sure that you select lawyers or law firms that handle consumer bankruptcy.

Web Resource #3:

Thomson Reuters’ FindLaw located in http://lawyers.findlaw.com

This is the online version of West Legal Directory of attorneys. Use the “Search for a Lawyer” to search their online database. Under the “Legal Issue” input field type in ‘bankruptcy’. Type in your city under the “Location” input box. Remember to include your state and zip code. It will make the query results more accurate. Press “Enter” or click the “Find lawyers” button. You will then be presented with a list of bankruptcy attorneys. If the list is too few, then you can widen your search criteria by removing the city on the search box. You can also use the adjacent cities close to you. Take note of the entries that have “offers free consultation” mark. They are the attorneys that you should prioritize on your list.

Some Warning on Choosing a Bankruptcy Lawyer

A lawyer can either represent the creditor or the debtor. Make sure the bankruptcy attorney that you are getting is a “pro consumer” and not a “pro creditor.” Remember that bankruptcy is not an easy matter, you do not want your attorney to miss the complexeties and intricacies that could save you money and property in the long run. Never assume that free or cheapest is better. Experience always counts.

Roilee Mandeville
http://www.articlesbase.com/law-articles/cheap-bankruptcy-lawyers-the-real-secret-to-quickly-finding-them-online-674359.html

Debt consolidation loans are always beneficial for consumers who are reeling under the burden of credit card debt. A credit card debt consolidation loan is a smart approach to avoid bankruptcy, eliminate harassing calls from creditors and lower the debt burden imposed by surmounting credit card bills.

With the advent of the consumerist and extravagant lifestyle of the USA, credit card bills have reached $9000 per annum per person. Even students tend to use credit cards and hike up bills with little idea of its consequences. With the rise in credit card debts and the increase in the number of people filing for bankruptcy, the credit card debt consolidation loan schemes have gained ground, and are now a profitable business in the USA.

The credit card debt consolidation loan is extended primarily to people with an impressive credit report. These reports go far in determining the amount of the loan sanctioned, interest rates and the payback period. A good credit score can lower the interest rates and also ensure a sizable loan amount. However, this is certain, that a person opting for a credit card debt consolidation loan is already buried under credit card debt, and this would reflect in his credit score, reducing the loan amount.

Mismanagement of funds and a haphazard use of credit cards can lead to very dire financial consequences. Once opting for a debt consolidation loan, refunding the loan along with the interest should be the primary objective of the beneficiary. It is always advisable to avoid taking a credit card debt consolidation loan if the bills due are such that can be paid off without aid. This should not be considered as a means to avoid paying dues or minimizing the amounts due.

When opting for a debt consolidation loan, it is necessary to avail all information on the various loans and the debt consolidation quotes to decide on the type best suited to your needs. Information on debt consolidation loans can be obtained by visiting credit card debt consolidation services and also online.

The main purpose of taking out a credit card debt consolidation loan is to avail better and lower rates over your current rates. For evaluating this, you need to pen down the present rates that you are paying and the consolidated rate that you will have to pay if you opt for credit card debt consolidation. Finally, it is the debt settlement process between the lender and borrower, which ensures a credit card debt consolidation loan plan suitable for eliminating a growing debt burden.

Gibran Selman
http://www.articlesbase.com/finance-articles/debt-consolidation-loans-as-a-solution-to-credit-card-debt-48885.html

Contrary to what many people believe, not all debts are dischargeable regardless of your bankruptcy filing options. For debts like student loans and mortgages, a debtor must enter into some type of repayment agreement rather than have these debts completely discharged.

In many cases, the court will appoint a trustee to liquidate your assets so the proceeds can be used to repay your creditors. The courts have established these guidelines as a way of preventing abuse and harm to society.

Bankruptcy filing does not solve all of a debtor’s financial problems. Courts have deemed that debts which could be harmful or unproductive to the nature of society are non-dischargeable in a typical bankruptcy. The idea behind this is so that people cannot relinquish their obligations to pay child support, alimony, and other money that contributes to the good of society.

This idea of non-dischargeable debts also spreads to student loans because of the amount of money granted by the government each year for college educations. Student loans are possibly the most difficult types of loans to get discharged through bankruptcy. Until recently, they were covered under the types of debt that were dischargeable under loan bankruptcy guidelines, but recent amendments to the code have changed this.

In terms of bankruptcy, business filings are often forced into a plan to repay the business’s creditors. The bankruptcy courts often see completely discharging the debts of a business as detrimental to society because of the ramifications involved. With a Chapter 7 bankruptcy, business assets are typically liquidated and the company shuts down.

This results in a loss of jobs that help to pump money into the economy. This is why businesses are often forced into a Chapter 11 bankruptcy because their debts can be reorganized and the creditors can be paid in installments while the business continues to operate.

For people who have fallen behind on car payments or home mortgage payments, bankruptcy filing can grant a temporary protection from their creditors. Chapter 13 is designed in such a way that homeowners or consumers with other types of secured debts can retain their property even if they have fallen behind in the payments.

The debtor makes arrangements with their court-appointed trustee to make payments along with extra money to help them catch up on missed payments with this type of bankruptcy. Mortgage companies are willing to work with debtors because they would rather afford them some leeway rather than go through the trouble of court proceedings involved with foreclosures.

Although it might be difficult, many people can still receive mortgage loans after going through a bankruptcy. Mortgage companies that do manual underwriting are more likely to grant a mortgage loan, but it will typically have a higher interest rate as well as strict repayment guidelines. If your bankruptcy was the result of a solitary life event, mortgage companies will also take that into consideration if your finances are in order other than that.

People who decide to go through bankruptcy will undoubtedly experience a life changing event. Bankruptcy filing can affect a person’s finances for several years following the discharge and oftentimes the debtor is still left with some debts that were not dischargeable. Unfortunately, once a person has gone through a bankruptcy, mortgage loans and other types of credit will have an unusually high interest rate attached to their repayment requirements.

MIKE SELVON
http://www.articlesbase.com/law-articles/nondischargeable-debts-in-bankruptcy-filing-140152.html

The US Congress passed a law that established a set of uniform laws to govern how bankruptcy was handled. These laws were situated under a system called the bankruptcy code. In this code there are chapters that refer to various issues in bankruptcy. One such chapter deals with allowing the debtor to start a new life whilst they pay off their future debts. This bankruptcy chapter 13 is one of the popular bankruptcy laws.

In bankruptcy you by and large need to find some way of surviving while at the same time you pay your creditors what you owe to them. This sounds like a civilized way of dealing with this matter but the truth is otherwise.

In most cases creditors will try to force you to give them the assorted amounts that you owe. This form of force payment can range from a simple letter to torment via phone calls and even visits from your creditors. With bankruptcy chapter 13 you have the best way of stopping this force payment and you are given a way to live again.

When you file for a chapter 13 bankruptcy you actually have protection against the creditors. Once a payment plan is setup and both parties agree, then there is nothing more the creditor can ask of you. They cannot change their mind and ask for more money. Again they may try, but you are now covered by the law and your agreed upon payment amount.

With a bankruptcy chapter 13 filing, for the person who has gotten into a debt which seems to be eating up their life’s earnings, this law allows the person to find a fair way of paying off their debts.

The terms of repayment will need to be discussed with your creditors in your lawyer’s presence. This way the terms of payment will be in conformity with a court sanctioned payment scheme. With this payment scheme your debts can be paid off with an amount of money that you can afford to spare from your monthly living expenses.

Make sure you take the time to understand and know what your monthly expenses are. Don’t put yourself in a payment plan that you can’t afford. Give yourself enough room to cover all your debts.

Once you have filed for bankruptcy chapter 13 your creditors are no longer suppose to talk to you directly about your credit claims. There is a ceiling period of five years for you to pay off any outstanding debts that you have. This is not set in stone so understand your state laws and ask the questions.

During the period of your bankruptcy chapter 13 gives the court the right to oversee how the repayment is progressing. Your interests for this entire time period will be looked after by your lawyer. There are other benefits that you can find with this bankruptcy chapter 13 law. So, be sure to ask your lawyer and the court system the questions you need answered.

In this law you will be able to get a full discharge option for your bankruptcy claim if you have managed to pay off of all of the outstanding debts. The other great advantage of bankruptcy chapter13 law is that anyone can file for bankruptcy chapter 13 as long as they have a steady income with which they can pay off their debts.

Don’t be afraid or embarrassed about gathering information on bankruptcy or even filing. Just make sure that you handle it with care. Meaning get all your questions answered and if you file, pay your debt back promptly. And remember, it is a new start with the discharge option.

Bowe Packer
http://www.articlesbase.com/non-fiction-articles/understanding-the-basics-of-bankruptcy-chapter-13-113495.html