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Bankruptcy

Bankruptcy Is Not A Sin

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As a Bankruptcy Counselor, I hear everyday how people are so stressed from their debt that they can’t sleep. I say this isn’t necessary, nor should it be happening. Why should people have this much stress over money the rest of their life? They didn’t commit murder, yet it would probably be easier on their mind if they did. All they did was borrow more than they could afford, had an unfortunate event happen to them, or both.

Bankruptcy’s Stigma

There are people who abuse the system, but you can’t let a few ruin it for the many. Bankruptcy shouldn’t have a stigma attached to it.Most people who file for bankruptcy have an unfortunate event happen and they are over extended. Of course some of that could be prevented with some personal finance knowledge. But who’s to blame for that? Can you blame someone who doesn’t really know any better?

If we lived in a society that sacrificed a virgin to the gods? Doesn’t that make it ok to kill a human being if it means better crops?

We live in a spendthrift society. It’s the norm to have everything you want because it makes us feel good. So can you blame people for borrowing money if it makes us happier?

The Lender Should Be Responsible

The way I see it is that you shouldn’t give personal loans to someone unless you think they will pay it back or you can afford to lose it. And if something happened so that they couldn’t pay it back you should work with them so that they would be able to pay for it. Otherwise you obviously don’t want the money back.

Why do some banks not want to work with you until you say the magic word “Bankruptcy”? They say it’s because if they did then everyone would try to have the bank work with them. I don’t buy it. First off, the bank could verify your income and prevent those that can really afford it from taking part in it. There’s really only one first off because that would solve the problem. Would the banks not be making more money because the interest is still accruing?

Dave Ramsey Is Wrong

Dave Ramsey doesn’t promote bankruptcy because it’s a “gut-wrenching, life-changing event that causes lifelong damage.” I don’t think so whatsoever. That’s more like the description if you don’t file for bankruptcy.

I hear people all of the time saying they wish they did bankruptcy sooner. They say that because it was so emotionally gut-wrenching to stick it out for so long.  Being relieved of that burden of debt is such a wonderful feeling.

What I Am Saying

I’m just saying if the banks won’t work with you and you tried all of your other options, don’t stick it out and hope it gets better. Make it better yourself by filing bankruptcy. It’s really not the end of the world.

But of course if you are pondering bankruptcy make sure you know about the negatives and positives. It can be harder to get credit in the beginning but you can start building up you credit right away.

If you had to go through bankruptcy because of mismanagement, then be sure you learn how to manage money because you will live in misery for 8 years because that’s how long it will be before you can file another chapter 7 bankruptcy.

If you filed because of an unfortunate event, then try to learn from it and try to prepare from it happening again.

Stop waiting and make something happen.

What do you think about bankruptcy?

 

Bankruptcy

Ways to avoid filing bankruptcy – Save yourself from being dragged to the court

According to recent reports, low interest rates and consumer spending are predicted to continue influencing a decline in bankruptcy filings. As per data from the American Bankruptcy Institute and Epiq Systems Inc, the total bankruptcy filings in the United States of America decreased by 15% in May, 2014 over the same time in 2013. In May, 2014, the total bankruptcy filings totalled to 85,667, which were down from May 2013, a total of 96,497. Consumer filings declined 11% to 82,774 from May 2013 when consumer filings totalled to 92,440.

On the other hand, total number of commercial filings in May 2014 decreased to 3190, thereby representing a 21% decline from the 4055 business filings that were recorded in May, 2013. The total number of commercial Chapter 11 filings dipped by 22% to 429 filings in May 2014 from the 540 commercial Chapter 11 filings registered in May 2013. Hence, we can clearly see that bankruptcy filings continue to nose dive in the present market environment of sustained low interest rates for business borrowers and lower than expected consumer spending. Experts and financial analysts are of the opinion that if these conditions continue to persist, the bankruptcy filings within the nation will also keep decreasing. In fact, as per reports, the average total filings per day in May 2014 were 2,763, an 11% decrease from 3113 total daily filings in May, 2013.

Smart ways to dodge filing bankruptcy – Exploring the alternatives

While unanticipated medical bills or a sudden loss of job can force almost anyone into a rather uncomfortable financial, more often than not people facing bankruptcy are in that situation only due to their poor spending habits accompanied with poor savings habits. Have a look at the strategies that you can adopt in order to avoid the pangs of filing bankruptcy.

  1. Cut down expenses: The first stage of avoiding bankruptcy is to figure out how much money you spend each month. We all know that arranging a budget is the best and the easiest way of getting a grip on your spending habits but in spite of knowing this, how many of us follow it? Once you know how much you spend in a month, you have to take vital steps towards curbing down your expenses. Cut down your credit cards immediately as that is the main source of financial imbalance. Check the areas where you’re overspending and this way you can trim down what you spend.
  2. Cut back on your credit cards: If you ever have to file bankruptcy, the main and the only reason would be the reckless use of your credit cards. Credit cards seem to be a blessing for our society as it allows us to purchase things without the need for cash but at the same time when you start misusing it, it becomes nothing but a nasty little debt generator. So, your next step would be to cut back on your credit cards. You can even take this tip in the literal sense, and cut your credit cards with the help of scissors. Unless you do that, you can never be able to resist yourself to the temptation of using your cards. Fill your wallet with cash and forget impulsive shopping for the time-being.
  3. Adopt frugal living: Many people think that frugal living deals with denying yourself of the luxuries of life and living by scrimping. But this is not the fact. Frugal living is indeed good when it comes to saving money and avoiding the ultimate debt relief option, bankruptcy. There are many unnecessary expenses that we usually tend to overlook and these are the ways in which we waste our dollars. If you visit the spa every month, stop doing so and try some DIY methods to stay beautiful. If you have subscribed to monthly magazines but you hardly find time to read them, you can cancel your subscription and save money. Rule out the option of eating out as this can also help you save your dollars. Cancel gym subscriptions and try out DIY methods to stay fit.
  4. Get professional help: When you’re in financial trouble, turning to experts for their helping hand can always be a good idea but those who are in need can usually fall prey to unscrupulous operators during this time. You will find companies with the basic sales pitch that says “pay me a fee and get a quick fix to your debt situation” but most of them are too good to be true. Before you take this turn, consider getting help of the debt consolidation companies or the credit counseling agencies as they can help you with an alternative way of dealing with your debts.

So, when you’re financially poor due to the huge bills that you’ve paid your credit card companies, take the above mentioned steps. Bankruptcy has a dampening effect on your credit score and so it is best to avoid it. Only when no option works in your favour, take resort to the inevitable but only after consulting an attorney.

Bankruptcy

How is Filing for Bankruptcy Helpful?

The cost of living is ever rising. The cost of running businesses is becoming too high and most firms are cutting down on the number of employees to lower operational costs. Unfortunately, you could be a victim of either of the cost cutting measures. This always finds people off-guard and a few months later, the little money you’d saved runs out. What happens when you are unable to repay your debts?

There are different debt relief options, but you may not be able to get a debt settlement or consolidation plan because of lack of income. So, filing for bankruptcy is your only option. The thought of filing for bankruptcy already made you shudder, right? You shouldn’t, and the best legal attorneys are advising you to file for bankruptcy because it will help you in the following ways:

  • Gives you the fresh start

How many times have you thought about how much you need a fresh start? Well, filing for bankruptcy will give you a real glimpse at starting afresh. Your financial crisis and the stigma associated with being broke and the whole world knowing about it disappears when you file.

The Constitution has laws that argue for bankruptcy filings and laws enacted support the notion that bankruptcy will give you the chance at a clear future. All you have to do is get the best attorneys from Carson firm to guide you in rebuilding a stronger financial future.

  • No more harassment from your creditor

This is the one thing that everyone who is in a financial crisis speaks hurtfully about. Creditors just never stop knocking on your doors, making endless phone calls or sending emails. After attorneys file your bankruptcy petition, your creditors will be ordered to stop harassing you. The only means of communication acceptable is papers with loan details.

  • Most of your debt is eliminated

Filing for bankruptcy is the safest way of getting rid of your unsecured loans. In most cases, most, if not all personal loans, medical bills or credit card debts are eliminated once you file.

  • Stops asset repossession

Losing your job, the death of your caregiver or losing money to a bad investment is debilitating. Your life changes in front of your eyes and you are left with little to do and live on. Many people stop considering bankruptcy because of fear; the fear of losing all your possessions however little you have remaining. You’ve been to bankruptcy auctions so you probably know how things go and how you can lose everything to repay that debt. Fortunately, with the best lawyers by your side, the bankruptcy filing stops repossession of your car, tools of trade, life insurance, ordinary household goods and some money, liquid or not. This makes it possible for you to live a better life despite your current financial crisis.

  • Safeguards your home

With the best attorneys by your side, you get to keep your home. The biggest worry you may have could be losing your home, but this shouldn’t be a worry if you have the best finance attorneys fighting for you.

  • Other benefits:
  1. Stopping wage garnishments
  2. Chance to catch up on car repayments and mortgages
  3. Preventing or wiping out any deficiency judgements for assets you choose to let go.

In conclusion, filing for bankruptcy gives you the opportunity to turn your life around. There is the normal stigma associated with filing for bankruptcy, but with the best Atlanta attorneys by your side, this won’t happen and in most cases, no one will know about it.

Author Bio

Clay Devlin is a renowned attorney working for the Carson firm. His expertise and experience in the field has him as a top celebrated bankruptcy lawyer. Check out his Linked in profile to learn more about him and bankruptcy.

Bankruptcy

Should Needy Seniors Be Given Help?

My time as a bankruptcy counselor allowed me to hear a lot of stories of what people were going through and how they got to the point of bankruptcy.

For the most part it was sad stories with people that were older and just didn’t have the money to support themselves so they had to use credit cards. I can understand that it’s going costs more to be older and there are unexpected things that happen and medical bills that can get expensive. But these people were living off of disability and social security.

I feel like when the sole income of someone is government programs they should be provided a class to help them with budgeting and to help decide the amount of money they need. That way people that need more money will get it and people that need less money won’t get it. Helping them to make a budget will help to give them a clear image of their budget and keep them from getting into credit cards because they need them to survive.

Yea I’m sure there are a lot of issues with a program like that but in the end I believe it would help a lot of people from getting to a point of no return. Getting into a lot of debt as a senior is damaging a lot more than just you pocket book. It’s a lot of stress on your body and mind. It’s definitely something seniors should not have to worry about since in all honesty they need more help than everyone else due to health issues and having the world change around them.

There are going to be a lot of retirees soon and there needs to be something out there to help them with life and there finances. Otherwise we could be in a lot of trouble real soon.

What do you think about something like this? Should people whose only income is from the government be given help on how to handle their finances? How should they be helped?

Bankruptcy

3 Reasons To Choose Chapter 13 Bankruptcy

Some economists say the recession is over, but many Americans are still struggling to feed their families while paying creditors. For some of these consumers, bankruptcy may be the only viable option. But before declaring Chapter 7 or liquidation bankruptcy, consider these three reasons to choose partial debt repayment under Chapter 13.

1. You’re much more likely to resolve mortgage-related problems under Chapter 13. Even the official United States Bankruptcy Court website recommends Chapter 13 above Chapter 7 if you hope to resolve past-due mortgage problems and keep your home. If you go for the Chapter 7 option, you’re much more likely to outright lose your home. In Chapter 13, court officials and your mortgage lender are much more likely to work with you to resolve a past-due mortgage problem and come up with an amenable solution for both you and the lender that doesn’t involve home foreclosure. Remember, most lenders would rather not deal with foreclosure due to the expense, red tape and potential for serious profit loss.

2. Your credit suffers less long-term damage when you choose Chapter 13. Chapter 13 is noted on your consumer credit reports for seven years from the date of filing, while Chapter 7 cases reflect for 10 years from the date of filing. Since you’re partially repaying your debts for three to five years under Chapter 13 and can’t legally get new credit without court permission, the wait to become credit-worthy again is significantly shortened with the Chapter 13 option.

3. Your ego may be less bruised in Chapter 13. No bankruptcy is easy and Chapter 13 is no exception. No matter what option you choose, you must open up your personal and financial affairs for court officials and in some cases, your creditors. Filing bankruptcy is nothing to be ashamed of, though internal feelings of shame and guilt are all-too-common among some people who have had to file bankruptcy. With Chapter 13, you can reassure that inner critic by reminding it that you did not take an easy way out and are repaying your creditors to the best of your ability.

    If most of your debt problems are related to federally-issued student loans, tax bills less than three years old, court fines, child support or alimony, then Chapter 13 won’t help you. No type of bankruptcy reduces or cures these types of “priority” financial obligations. The same rule of thumb applies to debts incurred due to illegal activities like drunk driving. If you’re embroiled in a struggle against one or more of these debts, contact someone involved in the situation such as an Internal Revenue Service or family court clerk.

    Stephanie Mojica is a writer for Quizzle.com, where she specializes in helping consumers with debt management and financial planning. She’s also a business success and prosperity coach and author of the free report “5 Business Prosperity Secrets.”