BEFORE YOU DECIDE TO FILE, THINK ABOUT THE ALTERNATIVES TO BANKRUPTCY

Bankruptcy should be the last resort to getting out of
debt. It will stay on your credit report for up to 10
years, guaranteeing that you will receive higher than
normal interest rates on future financing close to the
bankruptcy filing. Some debts will remain anyway such as
recent IRS debt, student loan debt and debt incurred
through fraud just to name a few. Bankruptcy may be better
for someone who has little income, extremely high
liabilities and no realistic way of paying those
liabilities back within a reasonable time period.

HAVE YOU CONSIDERED?

There are steps to consider prior to filing that are
alternatives to filing bankruptcy.

1) Negotiate with your creditors. It may be possible to
work out deals with some of your creditors. Explain you
current financial situation, your inability to
realistically pay the entire debt and your willingness to
pay a percentage of the debt over time. I have found that
most credit card companies are rarely willing to make such
arrangements. However, you never know until you ask. They
may be willing to work with you if they feel that a
bankruptcy is looming in the distance. They no that if you
file bankruptcy, they will likely receive nothing in return.

2) Debt consolidation loans. This may be a way to
payoff all of your unsecured credit card debts with one
loan that can actually reduce your monthly outlay. If you
do this type of consolidation loan, make sure that you do
not use your credit cards during your repayment term. This
can cause you to fall even further behind by incurring new
debt on credit cards that were just reduced to zero by the
consolidation loan. Caution! Do not take out a
consolidation loan against your home. You may have just
turned dischargeable credit card debt into secured debt
that can cause you to lose your home if not paid back
timely.

3) Consumer Credit Counseling Services. CCCS may be able
to negotiate effectively with your creditors even after
your efforts have failed. Those efforts may include
reducing financing charges, lowering monthly payments and
updating past due accounts. For credit counseling to be
effective, you must be able to make consistent payments
over a long period of time (40 – 60 months).

4) CCCS will also provide educational material in an
effort to help you avoid financial pitfalls in the future.
Make sure that you are aware of the charges that your
credit counseling services charges and to what extent your
payments will be going to your creditors.

5) Handling the debt on your own. If you have sufficient
income, can budget effectively and can communicate with
your creditors, you may want to handle the matter yourself.
You will have to contact each creditor in an effort to
work out some form of payment arrangement. While some
creditors will be open to this offer, most will not be
interested. Unless you can make arrangements with all of
your creditors, there is nothing preventing one creditor
from filing suit and collecting the debt through legal
means.

SOME OPTIONS TO SERIOUSLY AVOID AT ALL COST

Financial pressure can cause individuals to make decisions
that are not in their best long term financial interest.
One option to avoid is the payday loan or title loan. The
interest rate is often 200% or more annual percentage rate
(APR). Consumers often struggle to pay these loans in full
and often will extend the loan for another term. This debt
cycle escalates to the point where the consumer is paying
more in loan fees than the amount that was actually
borrowed.

Predatory consolidation loans should also be avoided. A
common predatory loan is a refinance of an existing loan
that is packed with excessive fees, contains a higher than
normal interest rate and provides little or no benefit to
the borrower. The pay back on these loans in terms of fees
and costs may actually exceed the original amount of the
loan. The attempt to end the debt may actually increase
the total debt.

About the Author:
David M. Siegel is the author of Chapter 7 Success: The
Complete Guide to Surviving Personal Bankruptcy. He is a
member of the American Bankruptcy Institute and currently
practices bankruptcy law in Chicago and its surrounding
suburbs. Additional information is available at
http://www.chapter7success.com/ .

John V
JohnC.Vincent/CEO/The Opt-In Magic System
http://CreditSurvivor.blogspot.com
http://LawOfAttractionSite.blogspot.com
http://ForexWealthMaker.blogspot.com

The Connecticut Bankruptcy Court And Its Decisions

When you file for bankruptcy, it means that you are unable to
make timely payments on all of your debts. This is not a
self-proclaimed state of affairs, since the courts will need to
rule on this decision, and the Connecticut Bankruptcy Court is
one example of a place that processes such claims.

The Connecticut Bankruptcy Court

The Connecticut Bankruptcy Court has a number of courts which
are located in the towns of Bridgeport, Hartford and New Haven.
They also have a website which you can find at
https://ecf.ctb.uscourts.gov/. This site will give you all the
information that you might need in regards to addresses and
other important contact information for these courts.

Once your decision has been made with regards to filing for
bankruptcy, you will also need to find a lawyer who will
represent you at your Connecticut Banruptcy Court hearing where
the final decision will be made. There are many lawyers in the
Connecticut area that will be suited for your case. Keep in
mind however, that you should search for one who is reputable
and trustworthy, so that the case is represented fairly and
equally and the best results for you are attained.

There are two areas which you can file for bankruptcy under in
the Connecticut Bankruptcy Court system. The first is Chapter
Seven, which is also known as "Straight Bankruptcy." This
effectively means that all of your debts will be erased, except
for a few such as student loans, purchases of over $500, taxes
and child support.

The other area under which you can file for bankruptcy in the
Connecticut Bankruptcy Court system is under Chapter Thirteen,
which is also referred to as "Wage Earner Bankruptcy." This
means that you will be given a repayment plan which spans
several years that will allow you to pay off your debts.

In October 2005, several amendments were made to the Chapter
Seven laws. This was done because it had become too simple to
file under this system. Now a test that includes many
determining factors is done to show whether you fall into the
category that can file under such claims. This is normally
determined if you do not have enough assets which can be sold
off to repay your debts, and if you earn less than average
wages that would make you incapable of paying them back. These
changes to the laws have also ensured that you must have
obtained credit counselling before you are allowed to file for
bankruptcy.

About The Author: Simon Peters is the owner of
http://on-bankruptcy.com/
it is THE best source for advice on the subject on bankruptcy, nothing to sell, just information . . .

John V
JohnC.Vincent/CEO/The Opt-In Magic System
http://CreditSurvivor.blogspot.com
http://LawOfAttractionSite.blogspot.com
http://ForexWealthMaker.blogspot.com

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush’s sweeping bankruptcy reform law goes into effect forever changing the rules of debt collection in this natiion. Consumer advocates and the public appear to be completely unaware of the total and complete victory of the creditors under the new legislation. This article opens the door to the Trogan Horse so that consumers can prepare themselves for the worse.

The most important aspect of the bankruptcy code was the “automatic stay” provision. This allowed consumers to file for bankruptcy at anytime during the creditor’s collection process putting an immediate stop to all contact and collection activities from the creditor. The new law requires that a debtor receive credit counseling from an approved non-profit credit counseling agency for 180 days prior to filing Chapter 7 or Chapter 13 bankruptcy.

While this may sound benevolent, a much closer look at the practical effect of this provision reveals the crafty peeling of the debtor’s rights. The 180 day requirement is to provide the credit counseling agency the opportunity to work out payment plans with creditors. However, during this same period of time the creditor is not restrained from collection efforts. For example, Margaret is a homeowner in Jacksonville, Florida and is six months behind on her mortgage. As a rule, credit counseling agencies only work with credit card companies and have little or no training with dealing with mortgage companies.

After receiving foreclosure papers, Margaret goes to see her attorney to file for bankruptcy and is told that she must first seek credit counseling before filing for bankruptcy protection. Meanwhile, the foreclosure proceeds on schedule and a sale date is set 120 days later. However, Margaret still has not completed her 180 day requirement. What will happen to Margaret’s home? That’s right! The home will be sold and she cannot stop the sale by filing bankruptcy.

This is the most sweeping shift in debt collection in the past 50 years. Margaret’s only hope will be to work out a repayment plan or a loan restructure with her mortgage company. This is a process called loss mitigation and is explained in great detail to consumers in our new book, How to Save Your Home, ISBN#09753754-0-7, $19.95, SYH University, LLC, 2005 which is sold at Amazon.com.

Loss Mitigation works because lenders lose an average of $28,000 to $50,000 per foreclosure nationwide. It is a myth that the lender wants your home and makes a profit off of foreclosure. A lender has to pay attorney fees, court and collection costs, maintain fire insurance, hire a real estate professional, repair structural and other damage to the home, and pay property taxes. The homeowner can work out an agreement with the lender in over 90% of cases. Our company has provided housing counseling service to thousands of homeowners and loss mitigation absolutely works.

In conclusion, it is up to the consumer to educate and prepare themselves for worse case scenarios. How to Save Your Home is an excellent training tool and will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to job layoffs because of a stagnant economy. Who amongst us is immune to heart attacks, business failure, strokes, law suits, tax liens or other challenges that life sometimes presents. One pay check is literally what separates many families from home security and despair and the new bankruptcy law will severly punish those who slip behind on their mortgage payments.

Herbert Addison, JD, CHC is a Certified Housing Counselor and a member of the Virginia Association of Housing Counselors. Mr. Addison is co-author of the new book, How to Save Your Home, and has helped thousands of families to save their homes from foreclosure sales.

John V
JohnC.Vincent/CEO/The Opt-In Magic System
http://CreditSurvivor.blogspot.com
http://LawOfAttractionSite.blogspot.com
http://ForexWealthMaker.blogspot.com

Life After Bankruptcy... Now What? 5 Ways to Repair Your Credit After Bankruptcy

Bankruptcy can be stressful and discouraging while simultaneously, a freeing experience for millions of Americans every year. Depending on which type of bankruptcy you file, you are either relieved of all of your debt through the liquidation of your assets, or you may be making monitored payments to your debtors.

This may prove to be quite beneficial. Your financial life is finally under control. However, because bankruptcy is perhaps the worst mark that can appear on one’s credit, you must focus on rebuilding your credit and in short order. Here are five ways to rebuild your credit after bankruptcy.

1. Create A Plan: Look at where you have been. Why did you have to previously file for bankruptcy? Once you have determined this, create a plan that will allow you to sidestep those previous pitfalls. Figure out where you want to go and then create a plan to get there.

2. Be Selective: Be selective about the money you borrow. Don’t buy things you don’t need on credit. You end up paying much more then they are worth. Instead, save up cash for items you want but don’t need.

3. Start Small: Once you have declared bankruptcy, you will have a hard time getting decent credit rates and terms, so start small. Purchase a small piece of furniture and pay it off within 6 months (skip the “don’t pay for a whole year” deals!).

4. Get A Secured Credit: Secured credit cards match the amount of money you deposit. It allows you to rebuild your credit safely, while slowly proving to the credit bureaus and future lenders that you can be a good credit risk.

5. Work With Companies Who Report to the Credit Bureaus: Some companies do not report to the credit bureaus, so your on-time payments are doing nothing to help your credit scores. Ask first, and then work with companies that will help you increase your credit score by reporting them to the credit bureaus.

Filing for bankruptcy can be a trying time. However, try to look at it positively. You now have the opportunity to start over and do it right. Learn from your mistakes, formulate a new game plan and then move forward. Life after bankruptcy can be much better, than the first time around!

FREE Report: Repairing Your Credit After Bankruptcy. Visit http://www.donerightcorp.com/bankrupt for more great bankruptcy credit repair tips!!
After Bankruptcy

John V
http://urlfreeze.com/JCV/CreditMastery/

JohnC.Vincent/CEO/The Opt-In Magic System
http://CreditSurvivor.blogspot.com
http://LawOfAttractionSite.blogspot.com

Bankruptcy Credit Repair

Are Non-Profit Credit Counseling Agencies a Better Bet for Consumers?

Non-profit document credit counseling agencies enjoy special benefits because of their status. There is a tax advantage; non-profits enjoy tax exemptions on both a state and federal level. Non-profit agencies are also eligible for both public and private grants to support their mission.

Non-profit agencies have a better reputation among both creditors and debtors. In order to initiate Fair Share contributions, non-profit status is mandatory. Some states even allow non-profit agencies greater freedom from consumer protection laws. Debtors feel more comfortable dealing with a non-profit agency than one with a more commercial focus.

Some consumer credit counseling agencies are truly in it to help people get back on the road to financial well-being. Agencies accredited by the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies offer reputable services to their clients. Such agencies will not make false claims about fixing credit histories or credit scores; they will paint a realistic picture of your situation and tailor their actions to meet your needs.

Before enrolling in a credit counseling program, you should research the agency carefully. Check with the Better Business Bureau to see if the agency has a history of complaints. Visit online forums to read reviews from former clients. Make sure that the agency is reputable and reliable before granting access to your financial information.

Solid, reputable credit counseling agencies are an invaluable resource for debtors who have reached the end of their financial rope. A good credit counselor will work with you to create a personalized budget and debt management plan, while working with your creditors to reduce monthly payments. Lowering interest rates and erasing finance charges and late payment penalties are another way a reliable counselor can help you. A counselor’s ability to eliminate phone calls and dunning letters from creditors is enough to make most consumers glad they chose to enter credit counseling.

Michael Martin is a knowledge seeker and publisher of FinancialKnowledgeCenter.com. Here he provides more information on credit cards, credit counseling and The How To's of Credit Counseling Agencies that will engage your curiosity and stimulate your mind.

John V
JohnC.Vincent/CEO/The Opt-In Magic System
http://CreditSurvivor.blogspot.com
http://LawOfAttractionSite.blogspot.com
http://ForexWealthMaker.blogspot.com

Bankruptcy: What To Expect If You File For Bankruptcy

First, understand that filing bankruptcy should be a last resort if you have borrowed money and have absolutely no way or repaying it. Filing for bankruptcy will have a negative effect on your credit history for 10 years or longer and may also adversely impacts your quality of life.

If you do declare bankruptcy, here are some things to expect. First, you will need to be prepared to explain to a bankruptcy judge or trustee how you got yourself into such a financial pickle. You will be asked some very tough questions and need to be ready with good answers. It will not be an easy or fun task.

The only credit cards you will probably be allowed to keep are those that were completely paid off before you declared bankruptcy. You will most likely lose all others.

Once you file for bankruptcy, you will have trouble getting a mortgage, a loan, new credit cards, life insurance and even some jobs. This is because there are employers who are skittish about hiring people who have filed for bankruptcy as they feel it demonstrates a lack of restraint or self-discipline.

Some of your debts will not be discharged. This includes child support, student loans and back taxes. So if you think filing for bankruptcy will relieve you of that $12,000 you owe Uncle Sam, think again.

Keep in mind that a bankruptcy will stay on your credit report for at least 10 years. This means that if you’re 35, you’ll be 45 before you can apply for a credit card, a mortgage, a loan or a job without the potential lender or employer seeing that you were once bankrupt.

The good news
Despite what you may have been told, it is possible to get a loan after filing for bankruptcy. It is called a bankruptcy loan and its purpose is to help you get back on your feet and reestablish your finances.

A bankruptcy loan is usually available only after your creditors have been paid and your bankruptcy dismissed. If you filed a Chapter 13 (reorganization) bankruptcy, your creditors must be paid in full before you apply for a large loan. And if you filed a Chapter 7 bankruptcy, you must wait at least two years after the bankruptcy to apply.

The best way is to prove to potential creditors that you are no longer a bad risk is by paying all your bills on time, and showing that you can now handle a credit card. Once you have a track record for paying your bills on time, and have successfully maintained a credit card, you can ask your creditors for reference letters to prove to potential lenders that you have become credit worthy.

You should also know that there are lenders out there who will offer you a loan while you are still in bankruptcy as a way of paying off your creditors. Don’t be lured into this. It usually just paves the way for further disaster as you are simply adding debt to debt. As a wise man once said, you just can’t borrow your way out of debt.

Going through bankruptcy can be a painful and embarrassing experience. Be sure you consider all possible alternatives before filing. You might find that bankruptcy is easy to get into but very, very difficult to get out of.

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Douglas Hanna has lived in the Denver area for nearly 35 years and is an expert on both Denver and Colorado. He is also the author of more than 120 articles on Denver and Internet marketing.

John V
JohnC.Vincent/CEO/The Opt-In Magic System
http://CreditSurvivor.blogspot.com
http://LawOfAttractionSite.blogspot.com
http://ForexWealthMaker.blogspot.com

Some Myths About Bankruptcy

When people are so deep into debts and they have absolutely no chance of paying them off then as a last resort they file for bankruptcy. However this is often considered a taboo subject and there are many misconceptions floating around. Some of the myths associated with bankruptcy are:

Myth 1: Everyone will know

People believe that as bankruptcy is a part of your public record every person will get to know about it. However this is far from the truth. No one is so bothered to check. Generally only your creditors and those you tell about your financial condition will know.

Myth 2: I'll lose everything

Far from losing things you own, bankruptcy may actually enable you to retain them. You will merely have to diligently continue the payments on your house or vehicle and compensate for the missed payments.

Myth 3: I'll never be able to buy anything again

No doubt bankruptcy, affects your credit drastically, however once in this situation you will also be flooded with credit offers either by secured cards or from sub prime lenders. The only downside is that these loans come at exorbitant interest rates. You will now need to avoid the mistakes you made in the past and improve your credit history. This can be done by paying off these loans punctually.

Myth 4: It is hard to file for bankruptcy

Filing for bankruptcy is not a tedious process. With the help of a good attorney just about any person can do so. They are experts at finding the loopholes and if not through Chapter 7 they will ensure you get file it through Chapter 13.

Myth 5: You can only file once

Filing more than once, for bankruptcy is not suggested. This means that the strategies you are using to handle your finances are not working effectively. It will be advisable to seek good professional help to get you out of this situation. However the law allows it, although with certain restrictions. You can file for Chapter 7 bankruptcy only once every eight years. You can file a Chapter 13 once every two years. If you have filed a Chapter 7 and now intend on filing a Chapter 13, you can do so only after four years.

Myth 6: The only reason to file is to get out from under the responsibility.

People are under the misconception that only people who shirk their responsibility to pay the loans back file for bankruptcy. However, it is actually filed by people who are so deep into debts that in spite of trying for years they cannot get out of it and the debts are accumulating. Also, people experiencing a divorce, loss of job, etc are often bankruptcy seekers.

Jeremiah Williams has created a website specialized on consolidator debt, resources and articles. More info on consolidator debt credit debt at: credit debt

John V
JohnC.Vincent/CEO/The Opt-In Magic System
http://CreditSurvivor.blogspot.com
http://LawOfAttractionSite.blogspot.com
http://ForexWealthMaker.blogspot.com