We as a society are so quick to want to resolve our problems; we automatically consider bankruptcy as being our only solution to our debt problem. I know because when I file bankruptcy a year and a half ago; I felt I had no other choice. The creditors kept calling my home and it seems that I never brought in enough money to pay our monthly bills. It is necessary that you take these tips to avoid personal bankruptcy so that you can salvage your credit from becoming scarred like mine has become.
Tip #1 Credit Counseling: Before you make any type of decision about which type of chapter you are going to file; it is important that you seek credit counseling and see if they can work with your creditors about lowering your monthly payments and your interest rates on your credit cards.
Tip #2 Budgeting: Every family should have some type of budgeting plan in effect.
Read more…
During these tough economic times it is not uncommon for debt collection scam artists to hit the phones and attempt to collect money on expired or non existent debts. The latest debt collection scam seems to be spreading across the US referring to Hollywood Video, which filed for Chapter 11 bankruptcy protection in 2010. The debt collection scam begins with a phone call from a collection agency, telling the consumer that they have a unpaid debt in regards to their previous account with Hollywood Video.
More often than not the consumer will be persuaded to pay the bill at a “reduced” rate in order to avoid the debt going on their credit report. This is the heart of the debt collection scam, you may not be responsible for this debt and the collection agency isn’t legally in possession of your debt, if it even exists.
Knowing your consumer rights is the best defense against debt collection scams, if you are unsure of your rights your best bet is to contact a fair debt lawyer and examine your rights. As co Read more…
Having different payment plans for your credit cards, loans and insurance premiums is great. It is convenient, flexible and (hopefully in your case) easy to maintain. It gives you the freedom to get the things in life that you have worked hard for in easy installment plans. It also eliminates the trouble of having to carry around money since you’d be paying bills and other payments through online banking or money sending. However, you can only enjoy this privilege if you are considered as a ‘good’ client (compared to a ‘delinquent’ one). These privileges also have a prerequisite and a price: first, you’d have to be in good credit standing and second, you’d have to be very consistent in paying bills and debts to maintain that good credit record.
Keeping a good credit record can be easier than you imagine. There are actually a lot of ways in which you can be defensive in taking good care of it. For one, you can maintain or improve your credit record by being disciplined in your payment schedules. Making sure th
Read more…
The IRS increases annual limit for traditional IRA and Roth IRA accounts each year, as it determines the amount of annual income, you may have to contribute. So you need to compare ira vs roth ira contribution limits.
Some people mistakenly assume that because they are eligible to make Roth contributions, they are also eligible to contribute the maximum contributions. This is not true. There is a disposal system based on an individual’s ability to contribute. This means that contributions are eliminated from the $ 6,000 or up to $ 5,000 range while down to zero. Therefore, you personal annual maximum contribution limit would likely fall somewhere between those figures.
As pointed out repeatedly, your eligibility to contribute Roth is largely determined by income level based on your tax status granted in a given year. Read more…
This personal bankruptcy story was posted on the internet in January of 2011 as comments in a bankruptcy discussion: “My father still hasnt filed for bankruptcy and hasnt gained employment. Its really seeming very hopeless on the employment side and his depression/unmotivated attitude is keeping him from proactively searching for jobs. And now on top of it all. He totaled my car that I was storing at his apartment until he had a job so he could insure and drive it. I own the car and its uninsured. The other persons insurance is saying they will come after me since Im the owner. I have nothing and dont really know what to do. Theres a court date next Monday and Im not sure if I should go or not. Would filing for Bankruptcy now help at all for this?”
The debtors good son in this personal bankruptcy illustration has previously asked for advice on whether his father should file bankruptcy or not. His father has no assets or income, and is disabled to boot. The
Read more…
However if you are considering doing this right after bankruptcy; you are going to notice that it is going to be difficult to find someone who is going to offer you a decent interest rate. After all your credit report is going to be screaming that you just filed bankruptcy.
You may want to consider rebuilding your credit for a couple of months to prove to the creditors that you are worthwhile of paying back the loan. You will hear people tell you that it will take you years to rebuild your credit or to be able to get a loan; however I have personally found this to be false.
I started receiving statements for loans and credit cards a couple of months after filing bankruptcy. However I have neglected to take them up on their offers; after all I do not want to get back into debt and I do not think that you should accept them either.
If you are employed after filing bankruptcy and are making the same amount of money when you were trying to pay all your debts; then the good thing is that you can work on rebuilding your credit and saving some of your monthly income as well.
It is possible to refinance after bankruptcy; however you will have to disclose the information to the lender as to why you filed.
Read more…