Repairing Credit after Bankruptcy
Some people are under the misguided belief that after a person has filed bankruptcy their credit is ruined for life. To be honest, after you have filed Chapter 7 and had your past due debts discharged, you begin your credit with a clean and fresh start. Now your credit is bad and the bankruptcy filing will appear on your credit report. However, you do have the opportunity of repairing your credit after bankruptcy.
After you have filed Chapter 7, the bankruptcy can show on your credit report for up to ten years. During this ten year period you can start to rebuild your credit. Rebuilding credit after bankruptcy will take you a little time, but with just a little patience, and planning, your credit scores will once again be as high as they were before your filing.
The very first step to your credit repair will be to correct the situation that created your financial instability. This may have been caused by a change of jobs, or illness. Sometimes this happens when people get too much credit and do not use it correctly. Let your situation improve some before you start trying to begin a new credit life.
If your financial situation was caused by too much credit, then you are getting the second chance you need to do this credit business correctly. Credit cards can sometimes come too easily and get us in over our heads financially. This time though you know exactly how to handle your credit cards and your other types of credit. Your credit score may even become higher than ever since you have learned so much about using credit. However, if you do not change your behavior, you could end up even worse off than prior to filing for bankruptcy.
The next thing you want to do is try and save a little money. Since your outstanding debts have been discharged you have a little extra cash that you were paying to them. Place some of this cash in savings. A savings account will also help you in the next year or so to receive other forms of credit. Try to deposit at least a small amount in the savings account on a regular basis. This is considered building a savings history.
When you have a little cash saved up, apply for a secured credit card. Secured credit cards are very easy to get since you send the credit card company cash money to hold as security. Having this secured card will mean you can start building a record of timely payments. These cards report the way you pay just like the other type of credit card. The longer you have the card the more of a payment record you will established.
You can also apply for store cards. Store cards are only good for merchandise in the store they are issued from, and are often easier to obtain than other credit cards. Once again make certain you pay the monthly payments on these cards in a timely fashion. The payments to these smaller cards are establishing your new credit history as well.
Once you have begun to re-establish your credit you should try to get another type of credit. Credit cards are considered revolving credit, they do help to rebuild your credit scores, but you also need to show a history of an account that has a monthly payment for a set number of months.
After bankruptcy loans such as a personal loan from your bank, or financing a car would fall into the second type of credit you need to have to re-establish a positive credit history. Do not get disappointed if it takes you a little time to get this type of credit going again. The best thing you can do is apply for this type of credit at the bank where you have your checking and savings accounts.
When you make a personal loan, or a car loan add $25.00 to each monthly payment. If you are suppose to pay $250.00 then pay $275.00. This extra amount will be applied to the principal of the loan. So you will be paying the loan off quicker, and saving yourself interest on the principal. This method of payment reflects very well on credit scores.
Many people wonder what their chances are of buying a house after bankruptcy. The chances are very good if you start slow and build your credit history responsibly. Pay your obligations on time, and do not try to rush into too much debt at once. A little patience and persistence will be your best tools.
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Finding a Bankruptcy Attorney
It might surprise you to discover that more than one million Americans file bankruptcy every year. The actual number is steadily rising because of the state of the economy and the loss of so many American jobs. If you are considering becoming one of this quickly growing population you should look for bankruptcy Chapter 7 lawyers online.
Technology has become so advanced that a person can simply type in the type of attorney “bankruptcy” and your general location. So for example, if you wanted to locate an attorney in Riverside County, California, simply do a google search to find a bankruptcy attorney in Riverside, or any other city, online. The convenience and security of online filing is quickly catching on.
If you are filing bankruptcy in Riverside you will not need to worry about taking time off from work to meet with the attorney if you will look at some of the online attorneys. These attorneys are available to you twenty four hours a day, seven days a week.
Look for an online attorney that offers free counseling or an online questionnaire that pre-screens you. The attorney that is willing to meet with you for free at their offices, or speak with you for free over the telephone, or chat with you at no charge on the computer cares enough about people to give advice. These attorneys want to steer you in the right direction.
You should look for a bankruptcy attorney with experience and that has quality information both on their website as well when you speak with them.
Ask around your friends and family and see if you can get any personal experiences with the attorney or law firm you are considering. Bankruptcy is a personal and private matter, but you may want to discreetly mention it to a few close friends to see if you can get any former clients of the attorney to give them a reference.
More than likely you are nervous about choosing the right attorney to handle filing bankruptcy in Riverside for you. This is a common reaction, filing Chapter 7 is scary and can be confusing to the average person. The terminology used when people talk about it is foreign and you do not want to appear dumb by asking too many questions.
That is exactly why you want a good attorney to represent and advise you on this subject matter. Each bankruptcy court will require a different number of copies of the paperwork that must be filed. The online attorney will know exactly what is required and if there are time lines or limitations to be followed.
When you ask questions of the attorney you are considering they should be ready to answer them immediately, unless they are more complex and take research. They should give you clear answers that are understandable to a layman, and make certain you understand everything..
The attorney should be able to explain the process and the length of time it will take for your contemplated bankruptcy. They should be able to administer the “means test” to determine eligibility for filing Chapter 7. It is not actually a test, it is a calculation of the amount of money you have available to repay the creditors you owe. This is generally done after you have submitted proper income and expense documentation to the bankruptcy attorney you have hired.
The attorney should be able to explain all the exemption rules in your case. A lot of your personal property may be exempt from liquidation or surrender during bankruptcy. The online attorney will advise you as to which items you can claim. Generally your house and a portion of land will be exempt, so will most 401Ks and cash values in life insurance policies.
When you file for bankruptcy online the attorney will complete all the necessary paperwork for you. The attorney will file it with the court and will attend your court hearing with you. When you are choosing an attorney to represent you they should explain all of this in the first meeting.
Remember that the attorney is there to help you through a trying time. Do not be afraid to ask questions about any portion of the proceedings you do not understand. You want to feel confident in your actions and in the process.
Allow your attorney the opportunity to help you through this. They are trained and knowledgeable in all the laws and procedures. They are your voice
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File Bankruptcy on line
The subject of filing bankruptcy is not frequently discussed among friends or coworkers. Financial matters are held in the strictest of confidence. Most people would sooner talk about their sex life, than talk about their finances. There is such an air of secrecy surrounding these matters that many people are not aware that they can file bankruptcy on line.
Technology has provided us with the tools needed to keep financial matters even more private. When you decide to check out the facts about Chapter 7 and how to start the process of filing, looking at the online web sites can give you the correct answers to your many questions. Being online gives you the privacy you desire while you investigate the actions that you need to take.
Bankruptcy filing online will still provide you with the same immediate stay to creditor harassment. As soon as you have the online attorney do your bankruptcy filing online your creditors will have to stop calling, and sending correspondence to you concerning your past due bills. Creditors must freeze the account at the time of your filing. This means no more added late charges or penalties.
When you file all actions like repossessions and wage garnishments must stop until after the bankruptcy hearing has been held. This applies to garnishments that are already in effect as well as any that were about to be sought. Even garnishments from the IRS for back taxes you owe are subject to follow this rule.
Bankruptcy filings online provide the clients involved with the convenience of being able to deal with this financial matter from the privacy of their home, 24 hours a day, 7 days a week. You will not have to take a day off from work to meet with the attorney and get your paperwork completed. Instead you will provide the attorney with the pertinent information via the internet.
There are a few things you will need such as a detailed list of your creditors and what you owe them. The online bankruptcy site will help you to know exactly what you need to provide them. The attorney will be available to answer all your questions, and to help calm any fears you have about this process.
Once your attorney has all the information they require they will fill out all the proper paperwork and schedules. The attorney will then file the proper paperwork with the correct court. You will be given a date to appear in court for your bankruptcy hearing. Your attorney will go with you to this court hearing, and help you through every step of the process.
One of the first things you will take care of when you file online bankruptcy is the “means test” that will determine your eligibility to file for Chapter 7. Do not let the word test spook you. This is really just you telling the attorney the amount of money you make, and the size of your family. You are not being tested just your income is being evaluated.
After you have taken the “means test”, your attorney will begin to advise you on which Chapter you should file. Chapter 7 is the most frequently filed individual bankruptcy.
When you file for Chapter7 you are also required by the court to receive some credit counseling prior to your court date. This is no problem when you file online your attorney will arrange for this counseling at your convenience. The attorney will be there to take care of all the little things so you can rest easier.
Filing Chapter 7 online will provide you with a clean slate to restart your credit on. Chapter 7 gets the amounts you owe to most of your creditors discharged completely. Then you get the opportunity to start over with peace of mind.
Many people worry that if they file Chapter 7 they will lose everything they have. The fact of the matter is that many things are exempt from being liquidated during a bankruptcy. Your online attorney will be able to advise you on which items will be exempt in your case.
Filing online is convenient and secure. The attorney will handle your case professionally and swiftly. If you do have any questions you will be able to contact your attorney 7 days a week to get the answers you need.
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Bankruptcy and Credit Cards
Bankruptcy and credit cards go hand in hand. The majority of people have credit cards, so it is safe to say that the majority of people who file for Chapter 7 have credit card debt to include on their list of creditors. This type of card credit is unsecured debt. That just means they have nothing to repossess if you do not pay.
As soon as a person files for bankruptcy the credit card companies have to stop calling you at home and work. They have to stop sending threatening letters to you. They have to stop adding late charges and penalties to your account. All of these matters will be settled when you have your bankruptcy hearing. By filing you receive an immediate stay on all your outstanding debts.
The stay does not just apply to credit cards or to unsecured debt, any creditor is stopped from taking any action including repossession until the bankruptcy hearing is final. You will be able to rest easy again without continuous harassing phone calls.
There are some credit card debts that will not be covered when you file for Chapter 7. If you take a cash advance, out on your credit card for a sum of $750.00 or greater seventy days or less before you file, the amount will not be covered in the bankruptcy. If you take a large cash advance and then file bankruptcy within a month it appears like you planned to defraud the credit card company out of that money. If you have taken a large cash advance, just delay filing until after seventy days have passed.
When you file Chapter 7 everything you owe on your credit cards will be erased. This includes all charges that were made on the card as well as all interest charges, late payment fees and any other charge that has accumulated on your account. After filing Chapter 7 you will have no credit card debt.
The best part of having a credit card with bankruptcy filing is your slate is wiped clean. Chapter 7 can reflect on your credit report for 10 years, but if you got in over your head with credit card debt before bankruptcy filing then you are going to get a fresh start. You will know this time how to handle the credit cards and what pit-falls you need to avoid to keep yourself from acquiring too much card debt.
If you are sitting there wondering how on earth you would make it with no credit cards you need to hear this. The filing of Chapter 7 and going bankrupt with credit cards does not mean you will not have any cards for the next ten years. The ones you currently have will be discharged, and after a period of time you can apply for other cards. You may have to start with a small limit secured card but you can have cards again before the 10 years is up.
Filing Chapter 7 and having debts owed to credit cards and other creditors discharged is not the end of your credit. It is actually a new beginning to your credit. Yes you will have to work a little harder at getting your credit score back to where it was before you became financially troubled, but it is possible to get there, you made it there once already so you can do it again.
Just wait until whatever caused the need for filing bankruptcy to be corrected before you start trying to get back on the credit horse and ride. If you jump back on to quickly you will more than likely not be as successful. The next time though you will know everything you need to get your credit score up and maintain it forever.
Filing bankruptcy online is a new and convenient option for people who are considering this action. You will be able to fill out all forms, find an attorney to file them for you and to represent you at your hearings and such. You will have the ability to ask questions of your attorney about any aspect of Chapter 7 that has you confused.
You will not have to lose all your belongings. Many of your possessions are exempt from being sold or relinquished during a bankruptcy. Go online and check the facts out, and start rebuilding your life today.
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Stopping A Garnishment, Creditors & Taxes
Just the title of this article is enough to make you get a sinking feeling in the pit of your stomach. Relax, because this article is actually going to bring you good news about stopping garnishments. You can stop payroll garnishments that have already begun on you, and you can stop future garnishments from happening. People do not have to accept and live with a garnishment against them.
If you have found yourself in a financial situation that prevents you from paying your obligations to your creditors the way you had originally agreed, then you need to consider filing bankruptcy online. Right now if you are behind in your bills your creditors are probably calling and sending threatening correspondence to you. You may even have been threatened with or had a payroll garnishment begun. Filing Chapter 7 can reverse and stop these garnishments.
Immediately when you file Chapter7 bankruptcy a stay goes into action that stops creditors, right where they are. They cannot add any more charges to your account the amount you owe is frozen right where it is. They cannot garnish your wages or repossess your property, if they are already garnishing your wages the garnishment will cease until after the bankruptcy hearing. Once the debt is discharged they cannot reinstate the garnishment.
If your financial difficulties include tax related problems, you can still find relief from the filing of Chapter 7. Federal and state taxes may both be eligible to be discharged under the Chapter 7 bankruptcy regulations.
Chapter 7 was designed to help people get out of bad debt situations like garnishments. This rule even applies if you to IRS garnishments. The IRS must follow all the rules just like every other creditor. You may very well be debt free to the IRS when the Chapter 7 bankruptcy discharges taxes you currently owe. You even get a fresh start with the IRS after bankruptcy.
A garnishment by the IRS or for student loans can really mess with your finances. When the garnishment begins your employer will be instructed to take 25% of you pay that is left after deducting all your social security, and taxes. They take the money from your take home pay and this causes you to be unable to pay all of your other obligations and provide food and shelter for you and your family.
Having your wages garnished is embarrassing as well as devastating financially. A garnishment comes from your pay before you get your check, so this means the secretary or whoever handles payroll at your place of employment has to know all your personal financial business. No one wants other people to know all their business. That is not the way to have to live.
People often beat themselves up when they find they have gotten into financial trouble. When a creditor starts proceedings to garnish their wages they feel like they have lost, and that they are going to have to pay for their bad decisions or bad luck. This is just not the truth. Filing Chapter 7 can stop all the garnishments and give you a new fresh start in your credit life.
Financial woes should not rule your life. Bad things happen to good people, but luckily there are good things out there to overpower the bad. Chapter 7 is a good thing that overpowers bad debt and gives you a second chance.
A lot of people assume that when they file Chapter 7 they will have to lose all their property to the bankruptcy estate. That is not accurate many different things are allowed to be exempt from a bankruptcy liquidation. Most people do not have to sell their homes, or their cars, or relinquish the cash value in a life insurance property or turn over their 401K.
Each state has slightly different rules about what is and what is not exempt. There are also federal rules on things that cannot be liquidated in a bankruptcy. When there is a discrepancy between state laws and federal laws the federal laws over-rule the state laws.
Filing online bankruptcy is easy and convenient. Even if you have not made the final decision to file you can check out your eligibility, and see what benefits you might gain from this course of action.
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Qualifications for Bankruptcy
There is no cut and dried answer to the question of what are the qualifications for bankruptcy. Because there are different types of bankruptcy there are four different sets of qualifications to consider. For individuals and married couples there are only two types they might qualify for, Chapter 7 or Chapter13. Chapter11 is strictly designed for businesses and Chapter 12 is only for families that own and operate farms.
A lot of people ask do I qualify for bankruptcy. Each case that is filed is unique. There are some guidelines you have to meet in order to even file though.
Chapter 7 is the discharge of all debts. This means a creditor can no longer sue you or even harass you about money you owed to them prior to your filing. These creditors will no longer be able to repossess or threaten repossession of any properties that is included in the filing. Before a person can file for Chapter 7, they have to pass a” Means Test” determining their current income. They will take into consideration the income you have had during the six months prior to filing. The income is judged against the current median income for individuals with the same size families as yours, living in the same state as you. If your income level is at or is above the normal median income in your state for your family size you will have to file Chapter 13.
Bankruptcy qualifications are determined by federally mandated laws. Should the laws of your state disagree with any federal bankruptcy ruling the federal law is always followed. When a person files they are required to provide the court with a list of all their creditors. This list must include the names and addresses of each creditor. The list must also include the exact amount that is currently owed to the creditor.
The filers must also provide the court with accurate personal information. The court requires you to disclose an itemized statement including all your assets. This statement must list any and all savings accounts, personal properties and investments you may have. Then you have to tell the court your source of income at the current time and the exact amount you have coming into the household each month. The court will want to know the size of the family that is living on this income and the exact monthly expenses that you have to provide for the family. Things like how much you pay in rent, insurance for your car, food, electricity, gas and other utilities will be considered as expenses. They also take into consideration how much it costs you to travel to and from your place of employment.
They may also consider how much of your income is disposable income that means how much money you actually have left after paying all your living expenses. If your disposable income is $6,000 or less you qualify, however if your disposable income is more than $10,000 you may have to file Chapter 13.
Persons wanting to file for Chapter 7 or any Chapter must receive credit counseling at some point in the six months prior to their having filed. The attorney handling your case will set this counseling up for you. The counselor will gather all the financial information pertaining to you and will actually help you decide if you are qualified to file for Chapter 7 or if you will need to file for Chapter 13. When you have completed the credit counseling the counselor will provide you with a certificate of completion for the counseling. You will file this certificate along with your petition to file bankruptcy. If you can prove to the court that you had a very good reason for being unable to attend credit counseling in the six months prior to filing for Chapter 7 the court may allow you to file on the promise that you will get credit counseling in the near future.
To actually determine your eligibility you have to get legal advice. The laws regarding this matter can be complicated and hard to understand. An attorney who works on these types of cases can help you do all the right things, so that this matter is resolved as painlessly as possible.
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How Does Bankruptcy Work ?
How does bankruptcy work? This question is asked every year by thousands of people. Sometimes people find themselves in financial situations that they cannot correct. People who have so much debt and so many creditors that they cannot pay their obligations to the people they owe, and keep a roof over their own heads. When they start to sink and do not know what else to do then they start to wonder what the bankruptcy pros and cons are. They wonder if they should take the risk of filing bankruptcy for themselves..
Bankruptcy is designed to help people when they have become so financially burdened that there is no possible other way to pay their debts. This can happen to anyone. People buy things on credit and make debts when they are making good money and they have every intention of paying for the things they have financed. Then something unforeseen occurs like an illness or the loss of their job and their debts are suddenly more than they can handle. Most of the time people will try very hard to keep paying their creditors, but they start to fall behind in payments, and the interest charges and late fees start accumulating on their debts at this point. They are suddenly sinking faster than they can bail out the boat and find they need a life raft to cling to until they can make it to shore. That is where bankruptcy comes into the picture.
There is not just one type of bankruptcy. Actually it is divided into four different Chapters or kinds, depending on the circumstances of the person who is filing.
Chapter 7 can be filed by businesses that are partnerships, businesses that are big corporations, by individuals and by married couples. This is probably the most commonly filed chapter. When Chapter 7 has been filed it is like liquidating all your debts. Your debts and the amounts you have left owing are wiped clear, and you begin again after a period of time with a fresh clean slate.
Chapter 7 is the most filed Chapter. Immediately upon filing a stay is put on all creditors. The harassing phone calls stop, the late charges quit mounting up and your creditors cannot repossess anything until the bankruptcy hearing is over.
Chapters 11 is strictly for businesses who are filing, and Chapter 12 only relates to farm families with special types of debt. Chapter 13 is a repayment type plan that is overseen by the court.
The next most popularly asked question on this subject is bankruptcy, how long does it last? After filing Chapter 7 and having your debts discharged, the bankruptcy will stay on your credit report for 10 years. Your credit score can continue to improve during those ten years if you have a good record of paying your debts during them. So even though the bankruptcy is reflected on your credit report it does not mean you will have a really bad credit score. Your credit score probably took a worse hit from the late payments of credit cards and other debts before the filing of Chapter 7.
You may have heard the term discharge of bankruptcy used and not know exactly what it means. When people say this they are referring to the main goal for filing bankruptcy, which is to have a discharge of debts. When you get this the people you owe can no longer hold you accountable for your debt. They cannot penalize you or sue you for the remainder of the debt you owe. They must agree and follow the courts orders concerning your debt and further responsibility to them.
You cannot file any chapter of bankruptcy without going to court. You need sound legal guidance to help you file and to represent your interests in court. You will be legally bound by the decisions made in court concerning your past debt and debtors. You must follow all the guidelines the court gives you in these regards. Your attorney will help you through all the paperwork and to understand all the regulations. There are even online bankruptcy attorneys that can help you through this difficult process, and help you regain control over your finances.
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