Personal Bankruptcy Protection

We all have good times and we all have good times too. Then there are those times that no one wants to know about, and some times it is for the best, but most times not. It is called bankruptcy. This is the process, which is then proven you owe more than you have in possessions. In other words you are in way over your head and you cannot afford anything, or your debts per month are more than your income.

You could have used the system and bankruptcy information especially dealing with personal bankruptcy protection which some banks offer more for businesses than for individuals, as a business has a higher need of requiring the services of personal bankruptcy protection. Businesses take out loans to support their operations, especially seasonal business such as carport places, construction of various natures, jobs that actually depend on the weather and timing.

Having some form of personal bankruptcy protection for the above-mentioned businesses could prove to be quite worthwhile. You could have been sued to the point of liquidation, and even in your personal capacity. And by having the personal bankruptcy protection offered by banks you could have protected yourself from all the dilemmas you are probably dealing with now.

Educate Yourself About Finances Today!

Being liquidated or sequestrated is by no means giving you more credibility out there. You have no rights to open accounts anywhere anymore for a specified amount of years. Every way you need to move or advance financially in life becomes a hurdle, which you could have prevented had you had the personal bankruptcy protection.

The service of personal bankruptcy protection does come at a fee, depending on the amount of risk your company has to survive. The higher the risk you are the more you would pay. And the premium is even higher had you taken out a bank loan to get the business up and running in the first place.

Most businesses fail more due to bad management than not having the biggest niche in the market. Most businesses also fail in their first year, and then the statistics lessen after that. The highest risk takers are those who depend on environmental factors such as rain to grow crops to supply foods be it exportation local and international. Farmers would be charged the highest premiums for personal bankruptcy protection.

Seasons change from year to year, and a single rainfall too short in a year could mean they lose all their crops for a good harvest. Hopefully these farmers have other ways of using their wasted crops to make some form of money, or have other forms of making money to cover for their losses.

The financial counselling Fantasy;

The financial counselling Fable;

financial counselling in Canada has become a common method of dealing with debt but may not be the advisable solution for Canadian's to control their debt. In a growing number of cases Canadian's will seek out debt consolidation loans to pay off their un secured debt and begin with a clean slate. Although this takes care of the initial problem it typically creates bigger issues . The reasons why this happens are;.

First of all, people are creatures of habit. By a debt consolidation loan you are only avoiding the underlying issue, your habits. Although a debt consolidation loan will repay your primary debt it doesn’t deal with your spending habits. Usually individuals getting debt consolidation loans to pay back their debt end up with twice the debt they began with.

This being the second reason consolidation loans do not work. After Canadian's pay back their credit cards or lines of credit it gives them access to available funds, causing the process to start over again. Usually people wind up with their account maxed out again, as well as, the debt consolidation loan that they borrowed to pay off their debt. The most typical phrases I hear as a credit counsellor is "I need to attain a debt consolidation loan to re-pay my debt", "I do not want to use revolving credit again". In theory this is great but more often than not this doesn’t happen

Unless an individual is prepared to tackle their overall problem (i.e. their spending habits) they will not succeed with a debt consolidation loan. In actual fact this is one of the main reasons that the banks have stopped issuing debt consolidation loans. They have, for the most part, stopped this because they recognise that this is only feeding the problem and not solving the problem. If you truly want to deal with your debt, cut up your credit cards, stop access to any revolving credit, make your monthly payments to pay the debt down and track your spending. It is only through the tracking of your spending habits that you will truly understand the fundamental issues of your debt. In order to deal with your debt problems, you must first understand how you got there in the first place.

If you want to live debt free you must recognise your unnecessary spending habits and make changes to eliminate them from your life. If you were to ask me what lesson I teach my clients the most, it’s how to track their spending and identify unnecessary spending.  

 



Greg Martin
Debt Manager
Phoenix Credit and Debt Counsellors

 Debt Consolidation Canada

Bankruptcy - Is It the Answer?

If your finances are in a mess, you may have considered bankruptcy. Even though your debt may be wiped clean, there are many other end consequences.

When a person's debt has risen to a level that they can't hope to get under control, they may consider filing for bankruptcy. For a consumer there are two bankruptcy choices:  Chapter 7 and Chapter 13. Chapter 7 bankruptcies involve wiping out the debts in part or in their entirety and liquidating assets to do it. Chapter 13 bankruptcies are more of a debt restructuring plan that gives you more time and a plan to pay back a portion of the debt that is owed to creditors.

Your credit will be damaged if you file for bankruptcy, maybe for as much as ten years. If you apply for any credit during that time the creditor will be informed of the bankruptcy.

Previously, people have taken advantage of bankruptcy laws. They were allowed to file more than once for Chapter 7 so many used it to beat credit card debt.

Each state decides on what assets they will exempt from being seized during a bankruptcy hearing. Knowing that, some may use available cash to purchase those items (homes, cars, etc.) in an effort to avoid payment and still retain the stuff they purchased. In this instance, creditors receive little or nothing from the bankruptcy settlement.

This has been changed by new laws. Courts used to have free rein when it came to who could file for Chapter 7 bankruptcy. Now certain standards have to be met first. In order to be able to file for Chapter 7, your income must be below the average income of the state where you live. Your income then goes through a calculation that determines if you have enough disposable income to be able to pay back twenty-five percent of the debt owed.

More people will have to file for bankruptcy under Chapter 13. The courts will decide the amount of repayment from facts that they receive. An allowance is made for rent or mortgage, food and other relevant bills. With the new laws, the IRS regulates the value of each bill, exempts a certain amount, and payments are decided from the rest.

Because there are more hoops to jump through, bankruptcy lawyers are charging more for their services. The whole process of bankruptcy will cost the filer more than before, which will make them think twice about the process. Credit counseling sessions are also required as a precursor to filing for bankruptcy. A credit counselor may determine that they can help you and thus eliminate the need for bankruptcy proceedings.

Filing for bankruptcy is a major issue and should not be taken lightly. Although it can wipe out credit card debt, it does come with its own price tag.

Credit cards and Bankruptcy

There was a time when credit was not very easy to get. Borrowing money for any reason was actually considered shameful, and being "in debt" was simply scandalous. If people wanted to buy things that they wanted or needed they simply SAVED; they did without those things until they could afford to pay for them in cash. It’s kind of strange, how things have changed!

In pursuit of mammon, those financial institutions have used every marketing strategy possible to make you want something now, not later, after all why wait a lifetime when you can have it now!

Simply put, anyone who wants one can get a credit card. It seems you don't even need a social security number and to prove the point, one man in California decided to make show the stupidity of the whole situation by responding to one of those "pre-approved" ads that came in his email and applied for a credit card in his dog's name.

Under the "age" section he inserted the number "3" and where it asked for the social security number he entered 000-00-0000. The card was given.

It’s alarming that people have become brain washed into not thinking about the consequences of borrowing money using credit cards. It is so, so very easy for people to get into spiralling debt with credit cards.

The banks and credit card companies do a great job, they make you believe that using a credit card is not like you are borrowing money, but that is exactly what you are doing. If you use a credit card to pay for your dinner and a movie, you've borrowed money to pay for the dinner and a movie, and the bill will come due at the end of the month. If you don't pay the balance on a credit card in full, every item that you purchased just cost more because you'll be charged interest. As they say it is easy to borrow – but wait … paying back from funds that you don't have is never easy.

Or put it another way, if you do not make the minimum payment on time, you'll be charged penalties and additional fees.

I know to you - I don't sound like I am crazy about credit cards. I'm really not, but they have become a necessity in today's mobile world. You can hardly make an online purchase without using one.

So where's the answer?  Well here are some suggestions:

1. The answer is to get ONE credit card. At the end of each month, pay the entire card balance.
   
2. Do NOTuse credit cards for everyday expenses.
   
3. Don't buy your groceries or pay for the dinner and movie with a credit card.

Almost all bankruptcies filed today are directly related to credit card abuse. You can avoid that. Students beware of this pitful

The sad thing is that my 7 year old son recently said to me, dad why don’t you buy me the computer game using your credit card – I had to take him to one side and give him a simple explanation of the dangers of borrowing and the fact that you have to pay it back.

It is with much regret that some of us will wonder where did it all go wrong - the lessons of our parent’s generation we have failed to heed – live within your means.

Meanwhile, the shareholders of these financial institutions and there directors continue to become richer at the expense of those who fall into the debt trap.

Behind on credit card bills? Should you go with bankruptcy or debt negotiation?

Defaulted loans can contribute to a very bad credit standing since every late payment is reported accordingly to the credit monitoring authorities. More so, a defaulted loan is another grave misconduct for every borrower and will appear without further ado on your record.

Truly, there are times when unfortunate financial situations can surface in the middle of the repayment period, and though we would want to repay in full as soon as possible, there are not much resources to get from. Some lenders will understand this situation, while some will not. Some lenders will keep on calling you day by day and remind you of your debts while some will simply sue you in court without warning. In these times, you are most likely left at the brink of struggle to clear your debts.

If you are left with little choices, and the situation is at is worst, there are only two options, file for bankruptcy or settle your debts with your creditor.

Filing For Bankruptcy

For many anxious debtors, this can be the foremost option that they consider at the height of stressing debt collector calls every single day. They file for bankruptcy to get rid of all that, and simply shy away with a damaged credit reputation and a disheartened disposition. Though this can be relieving for a while, you must also consider the long term effects of it. A declaration of bankruptcy can do more damage to your credit report more than you think. This, of course, discounts the possibilities of getting a good loan deal in the future, or getting a loan, at all.

Settling your debts Through Debt Negotiation

This is another option which you can consider. You can hire a debt settlement company to negotiate with your creditors for a reduced repayment amount and better yet, you don’t have to file for bankruptcy. With debt settlement, you also have the option to pay gradually whatever you owe them. This is if the lenders come into agreement with your presented resolution. If you plan to hire a debt negotiation company, you can be rest assured that you can pay in installment until you pay them in full.

These are the last options that you can think about right now, and since you have little left choices with your stern lenders, you might as well weigh these options and decide soon.

Trouble With Debt? Get A Bankruptcy Lawyer

bankruptcy claim

What can be more pathetic than being bankrupt? It has to be, making the decision to file for bankruptcy creditors protection. And what can make it more pathetic is to find a good bankruptcy lawyer for this purpose. In this 21st century of cut throat competition it might not take long for an individual to file a case a bankruptcy when the individual concerned is reduced into nothing. Not everyone knows the process when filing for bankruptcy. This is the necessity of a bankruptcy lawyer comes into the picture.

But what is more important is the choosing of a bankruptcy lawyer who can file and win the title of bankrupt for his client. There are a few steps that are being highlighted below and what may help an individual in choosing a bankrupt lawyer to serve his or hers purpose. The toughest part of this whole is, choosing whether or not to file a case for bankruptcy filings. And if the choosing part leads to the answer yes, then that is from were the individual will feel the necessity of a bankruptcy lawyer.

Bankruptcy is actually a special area of the law, which makes it all the more important for an individual to hire a lawyer who has all the respective knowledge that is usually required in this field. Thus, the most essential and important step should be to contact the local bar association of the locality. This is usually done to take there advice before deciding upon which lawyer will the individual will entrust his case to prove him bankrupt.

The individual can also choose his own lawyer and then ask the associations thoughts and concerns over this lawyer. The individual can also take recommendations from the association regarding the lawyer of his choice. As the bar keeps in touch with these lawyers, it has its views and thoughts against them, and depending upon the nature of the case the association also suggests a list of lawyers, who the association thinks are capable of handling this case.

Obtain references from family or friends about the lawyers credentials. Or even better is if the individual can enquire to other lawyers and attorneys regarding the lawyer of his choice or any other lawyer that may suit his or hers case requirement. The individual can also search online on the web before coming to a decision and before deciding upon his choice among the lawyers. After all these searching and scanning if any lawyer suits the individual’s requirement and comes within his pocket size, then he is the man!!

Consider bankruptcy? Get real answers to bankruptcy questions first!

You may find yourself in such desperate financial condition that you deeply feel there's no way out, short of filing bankruptcy. There are surely cases where filing bankruptcy is your greatest or only option. However, bankruptcy is a harsh situation which requires considerable research and thought before you proceed. Recent changes to bankruptcy laws have made it more difficult for an individual to file for bankruptcy. The law is quite complex and there are many caveats, which exclude certain types of debts from being discharged. For these reasons, you'll require to get some straight answers to bankruptcy questions before you commit yourself in court. Let's take a look at some situations that may apply to your case.

There are several types of debts which the court may not allow to be discharged in your bankruptcy filing. For example, if you have obtained a government funded or guaranteed loan for education, you will still be required to repay this debt. If you owe alimony or child support, the court will not secretion this obligation. Certain debts owed for injuries or death as a result of a DUI will also stand after bankruptcy. In some cases, condominium fees you owe will also not be discharged. There are also tax claims which are not dischargeable. You can see that having all of these debts may make your bankruptcy pointless. This list is certainly not macro, so you'll do well to consult an attorney or merely do some research on getting some of your answers to bankruptcy questions before you incur yet more debt.

If you have a criminal conviction, under title 18 of the United States criminal code, where you have been ordered to pay restitution, bankruptcy will not help you. This debt will stand.

Many folks facing bankruptcy incorrectly assume that they're allowed to keep automobiles which are financed, as your transportation is essential. This is no longer true. If you have a couple of vehicles for your household which are financed, the lender has the right to repossess both automobiles. Bankruptcy won't safeguard you.

Here's another common, but startling answer to bankruptcy questions. If you're paying a mortgage on your home, this debt also survives bankruptcy.

Your creditors have the right to competition you in a separate court proceeding on a debt which they feel they should be allowed to collect, regardless of the bankruptcy. They can sue you to corroborate their claim, costing you more money and the risk that you will be stuck with this debt.

If you're considering bankruptcy, do your research and get all of your answers to bankruptcy questions, before you opt for filing. There are many other options that may well serve you better.

Get more data about financial issues such as bankruptcy where you'll find everything you need to know about the payday loan reviews and much more.

EFFECTIVE MONEY SAVINGS TIPS

Saving is your best defense against bankruptcy. It insulates you from possible financial loss and gives you the ability to expand your finances and create a money-generating business machine that will help you earn extra.

Your potential to flexing your base income is augmented in ways that is not confined within the walls of basic employment. You can start up your own business, use it for loan purposes and earn interest on them while being used, among others.

But the basics of it all lies in saving – spending less than what you earn and keep something enough for future use and for unforeseen circumstances.

This article provides you with ways on how you can effectively maximize your financial resources and helps you manage your money by developing correct habits and outlook suitable for your goal.

- Wants and Needs – You buy items because you need them. A need is something you cannot take away from a person for these things are vital to his or her very existence and without them, they are categorically considered poor or deprived.

Food, shelter, clothing and transportation are the primary examples. In a modern world, car and phone gadgets are a necessary part of a busy working individual. However, unless you are receiving more than $10,000 per month, you basically won’t need to have a $40,000 to $50,000 luxury vehicle.

The same is true for your telephone media. Having your own cellular phone is necessary but keeping up with the latest model or buying the all the latest releases are not practical and earns you more points on plunging into a staggering financial downfall.

- Less Is best – Extravagance is the rule of the kings. While we sometimes need to afford a little affluence in terms of the food we eat, the body pampering devices and accessories, such as clothes and body-relaxing services, we also need to consider that these types of activities should only be reserved for special occasions and for cases when you have some excess left in your household budget.

- Spend Less; Save More – Spending more than what you earn or produce is a bad habit that most people get used to doing everyday.
Allocate a special percentage of your earnings to go into your savings accounts while spending the rest for your day-to-day expenses.
Unexpected charges, such as the visitation of your relatives or a house party due to a certain celebration will be there to stay so you need not make some leeway budget on them and save them should situation not arise.