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Debt Settlement Good or Bad Versus Other Options.

Nov 5

Posted by John Ames in Credit Repair | Comments off

There are two types of bankruptcies that most consumers file. A chapter 7 or a chapter 13.

A chapter 7 is the wipe out that most people associate with filing a personal BK. The laws changed in 2005 and it is now more difficult to qualify.

A chapter 13 is a 3-5 year repayment plan where the courts will determine how much you can pay (based on a calculated discretionary income) YOU MAY HAVE TO PAY OFF ALL OF YOUR DEBT. Only save interest and late fees.

Debt Consolidation is a program where you make one monthly payment to a company and they disburse it to your creditors. They typically lower your interest rate and the program is for an average of 7 years. “” Approximately 75% of the people who enter these type of programs never complete them. The companies who set you up in these programs earn most of their fees from the CREDIT CARD COMPANIES.

Your third option is Debt Settlement. Most companies are charging you a total cost of over 65% with no legal fees included. Click on the link and go to FAQ (Frequently Asked Questions) to fully understand why they are charging outrageous fees with no legal representation. There is one program out there, which is directly with an attorney with a total cost of 55% which also includes legal fees and court appearances as required.

Bankruptcy obviously has the worst effect on your credit. It will appear on your credit report for 8 to 10 years. Debt Consolidation is also a black mark on your credit due to the fact you could not fulfill your original contractual agreement. With Debt Settlement your credit score will decrease significantly in the short term (As you will pay the Attorney instead of your creditors). Once your accounts are settled or eliminated your scores will increase. Restoring or cleaning your credit is fairly simple once your accounts are closed. Most companies do not offer this service with the settlement. WHY NOT ?

John Ames is founder and president of legally settle debt. He has an MBA in Finance and over 30 years experience in Finance, Financial Planning, Debt Settlement and Credit Repair. Legal Debt Settlement

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What You Need To Know About Debt Consolidation!

Oct 10

Posted by Simon Beritt in Credit | Comments off

by Ben Davies

When you are down and the bills keep on coming and coming, then I know just how it can be, because I have been there myself and I have also come out the other side. However, I am still receiving messages everyday from people in the same situation as I was.

Many cannot even turn to those who are closest, because they either feel embarrassment or shame from their debts and their situation.

Whether that is true in your case or not, it’s vital to not dwell on them and realize that there is a way to get out of things. In fact it is not just a way, but there is a whole industry, that is dedicated to helping those that are in debt. It is actually common and once out, people can go back to rewarding and successful lives.

The first part of the process is to arrange a consultation with a fully qualified professional who can look at your situation and then give you an honest and unbiased review, then explain the full range of options available.

These qualified professionals are nearly always found working for high quality debt relief companies. There are many companies in the debt relief industry, but only a very few high quality ones. Some companies just want to sell further loans which add to your debts, and some are just out to take advantage. That is why it is imperative to find the best companies out there.

A high quality debt relief company will be able to offer a range of solutions based on individual circumstances.

These range from basic financial advice and management, to negotiating with creditors to reduce debts and interest rates, or looking at ways to spread payments and make them more manageable.

There is always something that can be done, but really the hardest part in all of this is to make sure you find the right people to help you. Once you have done this you can really get a clear understanding of just what is possible, and exactly how it can be done. Now this may not be easy, but if you are motivated, you can get there.

About the Author:
This independent report will explain exactly what you need to know to find the best Debt Relief companies to help you. It can be found by Visiting This Link.

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Reorganization Bankruptcy: Its Not Just For Businesses

Sep 4

Posted by Wendy Polisi in Credit | No Comments

The current global financial crisis caught many Americans unprepared for a downturn of the scale that has happened. As a consequence, many Americans found themselves in a situation where their financial liabilities far outpaced their income. The tightening of the credit markets in response to the current crisis inevitably led to a radical increase in the number of bankruptcies filed in the United States.

Many people considering filing for bankruptcy think of the more traditional Chapter 7 bankruptcy procedure first. This typically involves the wholesale liquidation of the petitioners assets, although there are some items that are not included. Most unsecured debts, like credit card debt and medical bills, are discharged. Today, the United States Trustee who oversees Chapter 7 bankruptcies also imposes a strict means test, which may deny Chapter 7 relief to persons with income such that the bankruptcy claim appears to be abusive.

Chapter 13 bankruptcy, or reorganization bankruptcy, is an alternative to Chapter 7. Chapter 13 bankruptcy reorganizes the petitioners monies so that debts can eventually be repaid. People who have nonexempt assets or properties they wish to keep find a Chapter 13 to be a useful option to a Chapter 7 that would require those assets to be liquidated. This is also a good choice for people that have a predictable income and would be able to pay off their debts if a restructuring and rescheduling took place. Under a Chapter 13 bankruptcy third parties are protected; a co-signer or spouse would have special protection. While a Chapter 7 discharges debts and liquidates assets in a matter of months, the reorganization plan that a Chapter 13 creates will be in effect for three to five years.

There are certain requirements to be met before filing for Chapter 13 reorganization. There are dollar restrictions on the amount of debt that can be restricted; more than $336,900 in unsecured debt or $1,010,650 in secured debt will disqualify a petitioner from filing a Chapter 13. The debtor must show that he or she will have a reliable income that will remain steady throughout the reorganization period. This income must be enough that once required living expenses are deducted there will be enough money to begin paying the debt down in a significant way.

Along with the above restrictions, stockbrokers and commodity brokers are not permitted to petition for Chapter 13 protection, for business or personal finances. However, most people will qualify in spite of the basic restrictions involved.

In general, the Chapter 13 filing process is complex and requires the assistance of a professional. Due to the nature of the process, most professionals will expect payment upfront before they take on a client. This means that if a debtor is considering a Chapter 13 filing, it is recommended that they do so before the situation becomes too desperate. Chapter 13 bankruptcy can be ideal for indebted professionals and others with a good chance of being successful in the future, but it requires strict discipline and must be taken very seriously to be effective.

Wendy Polisi is the founder of Credit Repair College and Finance the Dream. Credit Repair College empowers people to take control of their financial future by learning everything they need to know to repair credit on their own. For more information on credit repair please visit them on the web. Finance the Dream offers rent to own houses throughout the United States.

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Filed For Bankruptcy? There Is Still Hope!

Sep 2

Posted by Keith Howell in Credit | No Comments

Because of the unfortunate economy, many people are finding themselves in financial difficulties that lead to bankruptcy. You could be one of these people, and the road ahead may seem dark and dreary with no end in site; yet, this does not have to be the case. The truth is recovery from bankruptcy is not simple and it is definitely not easy, however it is possible. Consider the following advice that may help you as you take the steps to set up a better financial future for yourself and recover from bankruptcy.

After you do file for bankruptcy, make sure to me with your creditors and advise them of the situation. Any non-exempt assets that you have such as cash and certificates of deposits will be required to be returned to the court-appointed trustee for your case. This is only the first of a long part of the process, however, the next part should remain on recovery and what you plan to do to maintain decent financial health in the future.

Do not be surprised if you find it tough to get a loan for the next few years, because most lenders out there are most likely skeptical about lending to someone who has recently filed for bankruptcy. Most people with a bankruptcy on their record will not be able to qualify for a home or car loan. However, if they do manage to qualify for a basic loan or a credit card, typically the interest rate will be extremely high.

Many people do feel hopeless because it is difficult to get credit and bankruptcy is hard on a person’s self-esteem, however, making wise decisions after bankruptcy will make all the difference in your situation. The most important thing you can do is to remain positive, especially with the negativity that surrounds bankruptcy. Focus on the future and be positive about it and you will find that your situation will be better than you anticipated.

Many people who file for bankruptcy still keep their cars, because they need a vehicle to drive around. If you are making payments on the vehicle, make sure that you talk to your car lender and sign a reaffirmation agreement. This agreement specifies your willingness to act in good faith and continue making payments and it allows you to keep your vehicle despite the bankruptcy. Also, continue making payments in full on time to help your credit and to avoid your vehicle being repossessed.

An important part of recovery after bankruptcy is establishing new credit lines, which as mentioned above can be difficult because creditors are often hesitant to give you access to credit. While it is true that most traditional banks will not approve you, some banks will allow you to deposit money into an account and give you a credit card attached to that account, also known as a secured credit card. Although this may not seem like the greatest option, it will help you to eventually be eligible for a regular credit card.

In addition to getting access to new credit, you are also going to want to access your credit reports and make sure they are clean. The credit bureaus – Equifax, Experian, and Trans Union – should show that your debts have been discharged due to bankruptcy. If they do not show this, than you want to make sure that you speak with them about updating the report.

Also, many people think that they should co-sign with others to help their credit during this time period. However, this is not always smart because, if the loan goes bad, you will be held responsible and it will be bad for your credit. Although it may seem like a good way to build your credit, the risk is simply not worth it.

If you are able to get new credit cards, pay them off in full if possible. Some people assume that they should keep a balance because it is better for their credit; however, it is not always financial smart. You never know what financial emergencies you could have in the future, and therefore, it is a great idea to pay in full so you do not have credit card bills to deal with at the same time as another crisis.

Although bankruptcy may seem embarrassing, many people have to file for bankruptcy, and creditors will want to know why you had to file. Do not be surprised when they ask, and be prepared with a story to tell them. This is not a fake story, merely a realistic explanation of what happened.

Remember, life happens, and if for you bankruptcy is a part of that, oh well. Be positive and move forward. Recovery is a process, but it is possible.

A refinance mortgage is the easiest means of restructuring mortgage debt.

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Financial Literacy 101, the Class They Should Have Taught

Sep 1

Posted by Damian Papworth in Credit | No Comments

Thinking back over my days in high school, I remember the presence of some character in every class who was constantly asking the teacher, “How will this be useful for me in my life out of school?”. No matter the class, no matter the situation, the question would arise, to the disbelief and annoyance of the teacher, who never really gave an answer.

What a great exercise it would be, to find out what exactly turned out to be useful from each class, and in which cases those troublemakers were right. In other words, what have I actually used to get ahead in life and which class did it come from? However, that exploration will be left for another time. There is one subject which would obviously be useful for anyone in any career or vocation, one that should be taught in every school, but for some reason never is. The subject is Financial Literacy, something we could all put to excellent use.

Financial Literacy as a subject in school would be a course examining the impact of certain decisions on your finances, encompassing major and minor decisions. Basically, the goal would be to arm students with enough knowledge of the financial world that they wouldn’t go out and make the foolish mistakes that drive so many people to financial ruin every year. The curriculum would go in the following direction.

Week 1. Are you being scammed? Students would be shown how to spot a scam and avoid it. It will prevent a variety of mistakes.

Week 2. Will you be able to pay back the money you borrow? The second part of the class would help students figure out if borrowing money for business or personal use is a smart idea. Credit card debt, mortgages, and other loans would be discussed. The idea would be to give students a concept of cash flow and how to service a debt, while exploring tax benefits of debt.

Week 3. Asset evaluation. Students will have a chance to evaluate assets. What is an appreciating asset? How is that different from a depreciating one? Earning assets will be covered along with consumables. Defining one’s net worth is a series of decisions and students will see which choices will give them hope for the future.

Week 4. Investment strategies. Any investment you take has a number of consequences and risk potential. Students will be given the tools necessary to tell what a risky investment look like. Also, when the signs point to a winning gamble, they should be ready to pull the trigger. Although it takes a good amount of courage and a little recklessness, great investments can turn a life around.

Week 5. How leveraging investments works. Getting into more advanced material, students will learn how investment portfolios use leveraging to their advantage. The tax breaks possible would be included in the discussion, giving students the ability to use the tax code to their advantage.

Final phase. At the end of the course, the student would try and make it all come together. There would be a layout of common mistakes and how to avoid making them. The ways to use the law in your favor and how to protect yourself would be covered. Finally, there would be suggestions on how to work with whatever types of finances you have to create the maximum amount of wealth.

Damian Papworth understands that you don’t need mutual fund investments. Having learned some simple strategies, you can be your own investment manager.

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You Can Begin Your Own Credit Repair Today – Here’s How!

Aug 15

Posted by Mark Allen in Credit | No Comments

by Mark Alison

Regardless of your record or history, there are a number of quick & easy steps you can take towards credit repair. It’s never too late, and costs nothing, yet the results can be huge!

The first step is to get copies of your credit report, read them, and understand them. There are three credit reporting agencies, and there can be differences in your file between them.

The law entitles consumers to a free copy of the credit report, one from each of the three agencies: TransUnion, Equifax, and Experian. You are able to get one from each bureau every year.

There is a website set up by the FTC (Federal Trade Commission) specifically for this purpose: annualcreditreport.com. Be leery of any other sites claiming free credit reports – there will be strings & fees attached.

You’ll start your credit repair efforts as soon as you get your reports. To begin with, you want to read each report line by line.

Along with the report, you will get a “dispute” form – or an address where you can get it. This is where your initial credit repair efforts will focus.

Make a note of each and every entry that is either incorrect, outdated, or inaccurate. For each of these, you will be filing a dispute. You will want to list why the entry should be removed, such as a debt that has already been paid but hasn’t yet been removed.

By federal law, the credit reporting bureaus have up to 30 days to verify each dispute. If they don’t do so, or don’t do it within the 30 days, they must remove those entries from your credit report.

By taking this simple step, you will find some of those negative entries will come off your credit report, and as such no longer contribute to a low credit score. In some cases, this can boost your score by hundreds of points!

About the Author:
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A Simple Guide to Understanding the Impact of Personal Bankruptcy

Aug 14

Posted by Chris Blanchet in Credit | No Comments

by Chris Blanchet

For those who are considering personal bankruptcy, it is unlikely that all of the personal and professional consequences are known. However, the impact is quite serious and, often, harmful.

For a lot of people with a lot of debt, personal bankruptcy might seem like a popular option, particularly when debt and credit collectors are calling and making harassing remarks. While bankruptcy might promise to be an easy fix to the calls and sleepless nights, you should never hurry into bankruptcy. Although it can end the calls, it frequently proves to be the biggest mistake that prior bankrupt borrowers ever make.

Like everything else in life, personal bankruptcy comes with consequences. Here are some of the most popular consequences that you can expect in your personal and financial life:

Since bankruptcy is essentially a liquidation of assets, filing for bankruptcy puts your assets at risk. This includes properties, shares, personal valuables. These items can be sold by the trustee to settle outstanding debts.

Bankruptcy also puts to risk all future assets like an inheritance. Once a person declares bankruptcy his future assets would also be sold off to pay his creditors.

Besides the above, the impact of personal bankruptcy affects the individual’s future credit status too. An undischarged bankrupt cannot act as a company director and would not be allowed to obtain further credit till his case is dismissed by the court.

Taken one step further, a bankrupt individual cannot have a direct or indirect management position in a company and cannot become a counselor, magistrate, MP, or an Estate Agent. While this might not seem like a big deal, bankrupt individuals cannot hold positions as school or college governors and also cannot work at security firms or in the civil services.

A bankrupt also cannot hold any direct or indirect position in the management of a company. He cannot take the seat of a Counselor, Magistrate, MP or an Estate Agent. He cannot serve as a school or a college governor. People who have declared bankruptcy also cannot seek employment in security firms and civil services.

Personal bankruptcy also affects the debtor’s reputation. The entire procedure of declaring bankruptcy is very stressful. At times, the financial affairs as well as the conduct of the debtor are examined in open courts thus proving to be a humiliating affair for the debtor.

On top of all of this, a personal bankruptcy will have even more of a financial impact given the court costs and processing fees that come with filing.

If bankruptcy as a debt-clearing option is something you are considering, gather as much knowledge as you can about the alternatives. There are plenty of websites and e-books available on the topic and can be located rather easily on the internet.

About the Author:
Chris Blanchet is the author of the Personal Finance e-book Help Fix My Finances, which also serves as the premise for the Members Only website of the same name. His blog can be found at How To Repay Debt.

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