In the decades following the promulgation of the United States of America’s bankruptcy law about a century ago, a good number of Americans numbering into the millions had filed for personal bankruptcy. Majority of these numbers had done so during the last thirty years. A number of factors are thought to be responsible for the reason such a large number had taken the route to personal bankruptcy. Prominent among these is what some expert described as lawyers’ ads to “get out of debt quickly and easily”, the desire to have a “fresh start”. Nonetheless, that was to change quickly. At least, the proceedings and processes leading to bankruptcy would need some adjustments and fine tunings.
The new bankruptcy law (Bankruptcy Abuse Prevention and Consumer Protection Act 2005) brought about a new phase in bankruptcy filings in the United States. The law is intended at making sure that creditors do not suffer unnecessary lost, due to consumer declaring bankruptcy when really they can manage to pay off their debts. On the other hand consumers are protected. In a situation, where a consumer could not genuinely pay his debt, he could file for personal bankruptcy in order to avoid incessant harassments by creditors and their agents. Thus, before a debt could be discharged through personal bankruptcy, two major steps are prerequisites.
Credit Counseling.
The department of justice United States trustee program approves some organization to provide mandatory credit counseling for consumers considering personal bankruptcy. The trustee program maintains the list of all organizations approves to provide this important service. Therefore, all organization whose name does not appear on the list cannot provide a legal and valid credit counseling to consumers. A valid counseling must be sought within 180 days before filing.
What aspect should a credit counseling class cover? To be effective and achieve its intended purpose of preventing abuse and protecting consumer, a credit counseling session must give consideration to: An objective evaluation of the consumer’s financial situations; The consumer’s budget plan; Available alternatives to bankruptcy.
Having discussed what should be covered during a credit counseling session; the next question that naturally comes to mind is what is and who bears the cost of credit counseling? Well, the approved organizations are out to do business. Thus, they collect fees from consumers. However, in an extremely difficult financial situation, the consumer should discuss it first with the counselor before counseling. This helps the counselor to consider the possibility of fee waiver before the session begins. The cost of counseling though depends on the organizations involve, is generally about $50. After the counseling, a certificate of proof is issued to the consumer. The certificate is generated through a centrally coordinated automated system to prevent fraudulent issuance of certificate. The certificate is filed along bankruptcy showing that the consumer is qualified to file for personal bankruptcy.
Debtor Education
A compulsory debtor education must be completed before discharge. Thus, it is expected that a consumer will take debtor education soon after filing for personal bankruptcy. This helps to intimate the consumer about life after personal bankruptcy, the situations he is likely to face after discharging debt through bankruptcy and the best way to prevent going bankrupt again. To achieve its purpose a debtor education session must help the consumer to appreciate the following points:
How to achieve effective debt management
How to make prudent use of credit cards
What items should not be bought on credit
How to develop a functional budget
The importance of a savings account
The fee for a debtor education session ranges from $50 to $100. Still, a consumer who could no afford to pay could get a waiver by discussing with the organization’s educators before the session begins.
As noted above, consumer education serves to protect consumers. To this end, a debtor is encouraged to make good use of the opportunity that is presented by asking all relevant questions about personal bankruptcy. Take note of points use plan to use. This is necessary because many of us have come to realize that our bankruptcy is not a function of insufficient pay, but some little mistake we made. Therefore a good debtor education can go a long way to prevent future occurrence.
As with the credit counseling program, the United States trustee program appoints some organizations to provide this service. Visit the U.S trustee program website to find the list of approved organizations in your area. A certificate indicating that you have completed the debtor education program is issued at the end of the session. This must be presented to the court. Subsequently, the debt could be discharged.
Wednesday, December 12, 2007
Friday, December 7, 2007
Holiday Trips And Personal Bankruptcy
Maintaining a strict budget is one of the most effective ways top avoid personal bankruptcy. At this time of the year especially, it become impetrative that we keep a close watch on our spending. This advice applies in equal force to those who celebrate the holidays and those who do not. Every consumer at this time stands the risk of over-shooting his budget.
Travel agencies around the world are having their best time of the year during this season. Holiday’s resorts have started experiencing increasing patronages. Tourist centers around the globe are welcoming more and more tourists seeking adventure at this time. Some friend of mine are already set for the pacific island of Hawaii, the highest point on earth. It’s exciting and the feeling can be great!
These activities undeniably make life more fulfilling and satisfactory, but they must be kept in their proper place. They should not alter our budgets unnecessarily. A good number of families do not plan for these activities early enough. Thus, their budget did not take care of it. Note that it could spell financial doom to take holiday trip without advanced planning. Trips many a time, involves much more than what we see on the surface. Therefore, to be financially safe, there must be provision for contingencies. This requires adequate planning. All would want to come back home with best of souvenirs; these can cost a substantial amount.
It is a course of wisdom that you do not borrow to finance holiday trip. Better still to desist if you can’t afford to pay before departure or soon thereafter. And please do not go simply because your friends are going. Its wise and financially responsible to shelve your plan to a time you are better equips for it. You can start now to plan for your trip next year. Read more about the place and people you want to visit. This will give you a mental image of the place and its people. This knowledge in turn, will make you visit more rewarding when you eventually visit.
To avoid personal bankruptcy, consumers must beware of advertisers. They are well aware that some employees are better financed this time around. Many organizations pay their staff and allow them enough time to enjoy the holidays. With many companies already shut down factories for the holiday’s season, advertisers quickly come to your living and bedroom to offer their ranges of exotic and irresistible products. They promise fun and good time out there even when you are not taken any trip. Note that they are “watching” your pocket. Would you use all your arrears to finance the “holiday projects?” that’s food for thought!
Travel agencies around the world are having their best time of the year during this season. Holiday’s resorts have started experiencing increasing patronages. Tourist centers around the globe are welcoming more and more tourists seeking adventure at this time. Some friend of mine are already set for the pacific island of Hawaii, the highest point on earth. It’s exciting and the feeling can be great!
These activities undeniably make life more fulfilling and satisfactory, but they must be kept in their proper place. They should not alter our budgets unnecessarily. A good number of families do not plan for these activities early enough. Thus, their budget did not take care of it. Note that it could spell financial doom to take holiday trip without advanced planning. Trips many a time, involves much more than what we see on the surface. Therefore, to be financially safe, there must be provision for contingencies. This requires adequate planning. All would want to come back home with best of souvenirs; these can cost a substantial amount.
It is a course of wisdom that you do not borrow to finance holiday trip. Better still to desist if you can’t afford to pay before departure or soon thereafter. And please do not go simply because your friends are going. Its wise and financially responsible to shelve your plan to a time you are better equips for it. You can start now to plan for your trip next year. Read more about the place and people you want to visit. This will give you a mental image of the place and its people. This knowledge in turn, will make you visit more rewarding when you eventually visit.
To avoid personal bankruptcy, consumers must beware of advertisers. They are well aware that some employees are better financed this time around. Many organizations pay their staff and allow them enough time to enjoy the holidays. With many companies already shut down factories for the holiday’s season, advertisers quickly come to your living and bedroom to offer their ranges of exotic and irresistible products. They promise fun and good time out there even when you are not taken any trip. Note that they are “watching” your pocket. Would you use all your arrears to finance the “holiday projects?” that’s food for thought!
Monday, November 19, 2007
Factors That May Increase Personal Bankruptcy
A number of factors are thought to be responsible for the steady rise in the rate of personal Bankruptcy filings in recent months. The September peak of 3541 filing per day is a call for concern to many rights thinking people. The numbers of filing recorded in the months following October 2005, seems to mean that the new law is the panacea all of us needed. Well, as we can see today, that is not to be. In fact, it seems that owing to some factor, the rate of filing will continue to climb at least into the foreseeable future.
Natural disasters.
As people around the world live in fear of ever increasing incidents natural disasters, many would still file for personal bankruptcy as a direct consequence of lost of possession during emergency. Despite the existence of levees and pumps, the disaster that many had feared finally occurred in 2005 when hurricane Katrina stuck. “Long standing warnings” were either ignored or “met with half-hearted response,” said a report in USA Today. That’s talking about the city of New Orleans, Louisiana, USA. It so devastated the city that it takes billions of dollars to bring relief to victims. Despite government’s concerted effort to support victims, many households may still result to filing for bankruptcy due to non-indemnify losses. A couple of months later, hurricane Rita also struck. Hurricanes Rita may not have enjoy much publicity because a lot of people heed the warning and fled the trouble zone. Thus, human casualties were minimal. However, this did not minimized damages to belongings that cannot be transported in a “go bag.” Over the years, a host of other natural occurrences turned disasters had took it toll on people, resulting in enormous damage to businesses, properties and people’s means of livelihoods.
Many are already feeling the effect of these disasters. But the full consequences will yet be experience in the nearest future. The many that lost means of livelihood are most likely to face difficulties in paying mortgage loans, keep up with interest payment on credit card, and medical expenses. These ultimately will lead many to result to filing for personal bankruptcy in the years to come
Natural disaster can cause a lot of havoc on the human society. Some times it’s unimaginable. However, preparedness and heeding warnings, both official and natural warnings can alleviate suffering. Responding to warnings at the appropriate time can help in moving some valuables from the troubled area. Thus, how we respond to warnings is more important than how we will cope with natural disasters.
High interest rate
Credit card companies are now putting back credit into the hand of individuals they once vilified. “We don’t care about your credit score.” “With bad credit you are qualified, good credit will be rewarded.” “You are guaranteed $7500 credit line in 5 minutes” has become the gimmick many finance company adopts to entice unsuspecting members of the public. If it’s true that most filers were bad debtors who deliberately refused to pay, as claimed by financed companies, what assurance do we have that they would the new debt? It would be recalled that prior to the enforcement of the new bankruptcy law in the United States, many credit card companies went to the senate saying, America runs the risk of being ruin by bad debtors. Interest rate on credit card is on the increasing side and those once declared bankrupt faces additional risk. Then going bankrupt again is not foreclosed.
Mass layoffs.
As companies in the building and transportation equipments industries struggles to survive in a saturated market, cutting down on cost is not an option. Reducing the number of employee on their payroll has been the route many takes to achieve reduction in cost. Disengaged employees are really in for a hard time in face of surging cost of living. High transportation cost, rising medical bill makes heath insurance inevitable.
These and many more jostles for the meager income of a disengaged family head. Not to be overlooked are mortgage and car loan. In an era of mass job loss, it is only reasonable to expect more to file for personal bankruptcy. Are we saying this to scare or put fear in you? In no way! To be forewarned is to be fore armed they say. The purpose therefore, is to help you be on guard. How can you do this?
Natural disasters.
As people around the world live in fear of ever increasing incidents natural disasters, many would still file for personal bankruptcy as a direct consequence of lost of possession during emergency. Despite the existence of levees and pumps, the disaster that many had feared finally occurred in 2005 when hurricane Katrina stuck. “Long standing warnings” were either ignored or “met with half-hearted response,” said a report in USA Today. That’s talking about the city of New Orleans, Louisiana, USA. It so devastated the city that it takes billions of dollars to bring relief to victims. Despite government’s concerted effort to support victims, many households may still result to filing for bankruptcy due to non-indemnify losses. A couple of months later, hurricane Rita also struck. Hurricanes Rita may not have enjoy much publicity because a lot of people heed the warning and fled the trouble zone. Thus, human casualties were minimal. However, this did not minimized damages to belongings that cannot be transported in a “go bag.” Over the years, a host of other natural occurrences turned disasters had took it toll on people, resulting in enormous damage to businesses, properties and people’s means of livelihoods.
Many are already feeling the effect of these disasters. But the full consequences will yet be experience in the nearest future. The many that lost means of livelihood are most likely to face difficulties in paying mortgage loans, keep up with interest payment on credit card, and medical expenses. These ultimately will lead many to result to filing for personal bankruptcy in the years to come
Natural disaster can cause a lot of havoc on the human society. Some times it’s unimaginable. However, preparedness and heeding warnings, both official and natural warnings can alleviate suffering. Responding to warnings at the appropriate time can help in moving some valuables from the troubled area. Thus, how we respond to warnings is more important than how we will cope with natural disasters.
High interest rate
Credit card companies are now putting back credit into the hand of individuals they once vilified. “We don’t care about your credit score.” “With bad credit you are qualified, good credit will be rewarded.” “You are guaranteed $7500 credit line in 5 minutes” has become the gimmick many finance company adopts to entice unsuspecting members of the public. If it’s true that most filers were bad debtors who deliberately refused to pay, as claimed by financed companies, what assurance do we have that they would the new debt? It would be recalled that prior to the enforcement of the new bankruptcy law in the United States, many credit card companies went to the senate saying, America runs the risk of being ruin by bad debtors. Interest rate on credit card is on the increasing side and those once declared bankrupt faces additional risk. Then going bankrupt again is not foreclosed.
Mass layoffs.
As companies in the building and transportation equipments industries struggles to survive in a saturated market, cutting down on cost is not an option. Reducing the number of employee on their payroll has been the route many takes to achieve reduction in cost. Disengaged employees are really in for a hard time in face of surging cost of living. High transportation cost, rising medical bill makes heath insurance inevitable.
These and many more jostles for the meager income of a disengaged family head. Not to be overlooked are mortgage and car loan. In an era of mass job loss, it is only reasonable to expect more to file for personal bankruptcy. Are we saying this to scare or put fear in you? In no way! To be forewarned is to be fore armed they say. The purpose therefore, is to help you be on guard. How can you do this?
Personal Bankruptcy on The Increase
The administrative office of the U.S. courts has finally released bankruptcy report for the first quarter of 2007. The document shows a continuous and consistence rise in the number of bankruptcy filing in the United States. The document put the first quarter filing at 193,641.
Besides the first quarter report, the preliminary report for September 2007 revealed something more to think about. It shows that September has the highest filings since October 2005. A total of 67,386 filed for personal bankruptcy in nineteen (19) business days in the United States. Numerically though, August seems to have the highest rate, but then taking ratio to number of business days shows that September had an average of 3,541 filings per day, giving September the highest filing per day in the post October 2005 bankruptcy reports.
The months following October 2005 saw a very sharp decline in the rate of filing. This was well reported by newspapers nationwide, celebrating what seems to be a bye-gone era for personal bankruptcy.
Why the steady increase currently experience? Better still why did filing plummet after October 2005? Or lets put it this way: will we ever stem the tide? Well, experts hold divergent opinion on why filing decline after October 17, 2005. They differ on what might be the real reasons for the sudden decrease after the reformed bankruptcy law went into effect.
In the real sense of the word, were there any decreases in personal bankruptcy? The answer is no! We experienced decline in filing rate though, but there was no decline in bankrupt or potentially bankrupt individuals. The months proceeding October 2005 saw a great upsurge in filing because people who had been hitherto leaving on the edge had to make “hails while the sun shine.” They simply make use of the opportunity the old law presented. This account for the unprecedented increase in filing under the “old system.”
This significantly depleted the number of filings that were recorded after October 2005 and it ran through early part of 2006. The law that came into effect made the process of filing more tedious, expensive, and time wasting. As rational economic human then, there must be an initial retreat as a result of the shock that always accompanies major policy changes or law amendments of that class. From human experiments on the surface of the earth, such a retreat or withdrawal don’t last. Sooner or later, people get acclimatizes to the process, they adapts and return to “statos quo.”
The law addresses the processes and procedures involves in filing and the presumed benefits to the filers. It never address question such as: why do people go bankrupt? Such issues as interest payable on credit cards, mortgage loan interest, mounting transportation cost, upsurge in medical bills and related subjects. It also fails to comment on attitudes and lifestyles that drive people toward a bankrupt state. Does the reformed law comment on the health-care cost for smoking related illnesses? Is there any chapter or section in the law that estimates the lifetime health-care cost of palates and cleft lips, which illnesses result from smoking mother? Did the reformed law bankruptcy law address gambling? I am sure it did not address drug abuse, abuse of alcohol, promiscuity and related unhealthy lifestyles that drive people today towards a defunct financial states and eventual bankruptcy.
Of course is not up to lawmakers to recommend how individual should live their lives, and never will they! A law is not a document of social etiquette. Nonetheless, the questions raised above merit major consideration if we do not want to open the unwanted page. So can we realize our dream of a less bankrupt society?
Besides the first quarter report, the preliminary report for September 2007 revealed something more to think about. It shows that September has the highest filings since October 2005. A total of 67,386 filed for personal bankruptcy in nineteen (19) business days in the United States. Numerically though, August seems to have the highest rate, but then taking ratio to number of business days shows that September had an average of 3,541 filings per day, giving September the highest filing per day in the post October 2005 bankruptcy reports.
The months following October 2005 saw a very sharp decline in the rate of filing. This was well reported by newspapers nationwide, celebrating what seems to be a bye-gone era for personal bankruptcy.
Why the steady increase currently experience? Better still why did filing plummet after October 2005? Or lets put it this way: will we ever stem the tide? Well, experts hold divergent opinion on why filing decline after October 17, 2005. They differ on what might be the real reasons for the sudden decrease after the reformed bankruptcy law went into effect.
In the real sense of the word, were there any decreases in personal bankruptcy? The answer is no! We experienced decline in filing rate though, but there was no decline in bankrupt or potentially bankrupt individuals. The months proceeding October 2005 saw a great upsurge in filing because people who had been hitherto leaving on the edge had to make “hails while the sun shine.” They simply make use of the opportunity the old law presented. This account for the unprecedented increase in filing under the “old system.”
This significantly depleted the number of filings that were recorded after October 2005 and it ran through early part of 2006. The law that came into effect made the process of filing more tedious, expensive, and time wasting. As rational economic human then, there must be an initial retreat as a result of the shock that always accompanies major policy changes or law amendments of that class. From human experiments on the surface of the earth, such a retreat or withdrawal don’t last. Sooner or later, people get acclimatizes to the process, they adapts and return to “statos quo.”
The law addresses the processes and procedures involves in filing and the presumed benefits to the filers. It never address question such as: why do people go bankrupt? Such issues as interest payable on credit cards, mortgage loan interest, mounting transportation cost, upsurge in medical bills and related subjects. It also fails to comment on attitudes and lifestyles that drive people toward a bankrupt state. Does the reformed law comment on the health-care cost for smoking related illnesses? Is there any chapter or section in the law that estimates the lifetime health-care cost of palates and cleft lips, which illnesses result from smoking mother? Did the reformed law bankruptcy law address gambling? I am sure it did not address drug abuse, abuse of alcohol, promiscuity and related unhealthy lifestyles that drive people today towards a defunct financial states and eventual bankruptcy.
Of course is not up to lawmakers to recommend how individual should live their lives, and never will they! A law is not a document of social etiquette. Nonetheless, the questions raised above merit major consideration if we do not want to open the unwanted page. So can we realize our dream of a less bankrupt society?
Why You Shuold Seek Alternative To Personal Bankruptcy
preliminary report by the administrative office of the U.S. courts shows that a number of Americans are “climbing” the bankruptcy ladder during the month of September 2007. The September report represents a new peak in the post-reformed bankruptcy law. It aptly reminds us of the word o f former U.S. senator, who once said “America is in the midst of bankruptcy crisis.” This is the reality today. Then, the question is not why do they go bankrupt? That would only not solve the problem but only leave some more dejected and resign to failure. The question should be what options and alternatives to personal bankruptcy are available? Is there any of such? Yes there is! There are alternatives to personal bankruptcy and they are readily available to any wiling individual. It suffices to note at this point that this article does not in any way constitute a legal advice. Thus, why you seek alternative to personal bankruptcy?
Bankruptcy does not erase all debt.
It’s no longer “business as usual,” but you can reduce your debt by 60% if you embrace the negotiation approach. Before October 2005, the process of filing bankruptcy was relatively easy, fast and an individual could easily discharge his debt obligations. Lawyers’ ads were: “get out of debt easily and quickly” The reformed bankruptcy law however, laid much emphasis on repaying creditors. Thus in cast of (chapter 7) bankruptcy, which happens to be the most common one, you may have to surrender valuable items to the courts for the good of your creditors. Bank account, jewelries, pleasure boat, stock investment and other non-exempt items
To avoid this fate, it is strongly recommended that an insolvent should consult professional debt negotiator. And, if your situation qualifies you for that benefits, you may have debt reduce by up to 60% in no time. This negotiator consults with your creditors and presents them with your plan to pay the remaining amount, depending on the percentage they are willing to reduce. Most creditors welcome this approach because; they realize that if you file for bankruptcy they may loose all you owe them. In addition, when a consumer files for bankruptcy, creditor can only collect any amount due to them at extra cost. In most cases, they will have to use a number of collection methods, and spend a proportion of what is due them on legal services. Therefore, foresighted creditors always welcome negotiation. Through this process they can collect the remaining one easily and quickly at no additional cost.
One reason why you should use debt negotiators instead of going it yourself is that negotiators sometimes represent thousands of consumers with total debt running into the billions. Owing to this fact creditors always find their proposal irresistible. They are well aware of how much they can recover by acceding to negotiator’s request. Thus, through negotiation, you can discharge your debt legally. No loan, no personal bankruptcy!
Bankruptcy may cling to you for a lifetime
Another reason why you should seek alternative to personal bankruptcy is that bankruptcy may blemish your financial profiles for a lifetime. In the process of filling application for credit, are you not often asked if you have ever filed for personal bankruptcy? Why do they ask? And how would you answer? Can you escape the fact perhaps by giving the wrong answer? Be careful! That would be a very serious federal offense. In fact, bankruptcy ruin you financially because impact negatively on your credit rating for a very long time. In some cases, it may take up to two decades to erase.
All indicators point to alternatives to personal bankruptcy as the best choice. If you are declared bankrupt today, are you sure you will not find yourself in the same situation tomorrow? How many times do you think you can file bankruptcy in a lifetime? Besides the fact that law of the United States backs bankruptcy, it has serious effects on others. Bankruptcy also involves moral uprightness. Why? At the point of purchase, mortgage loan application, car loan application, and credit cards application the consensus is that I will pay. Suffice to say that this is personal opinion, and in no way a generalization. The most important reason why you should seek means to pay off your debts is the moral obligation involve. That is my strongest reason. What about you? Seeking the available alternatives to bankruptcy demonstrates integrity, fidelity and love.
Bankruptcy does not erase all debt.
It’s no longer “business as usual,” but you can reduce your debt by 60% if you embrace the negotiation approach. Before October 2005, the process of filing bankruptcy was relatively easy, fast and an individual could easily discharge his debt obligations. Lawyers’ ads were: “get out of debt easily and quickly” The reformed bankruptcy law however, laid much emphasis on repaying creditors. Thus in cast of (chapter 7) bankruptcy, which happens to be the most common one, you may have to surrender valuable items to the courts for the good of your creditors. Bank account, jewelries, pleasure boat, stock investment and other non-exempt items
To avoid this fate, it is strongly recommended that an insolvent should consult professional debt negotiator. And, if your situation qualifies you for that benefits, you may have debt reduce by up to 60% in no time. This negotiator consults with your creditors and presents them with your plan to pay the remaining amount, depending on the percentage they are willing to reduce. Most creditors welcome this approach because; they realize that if you file for bankruptcy they may loose all you owe them. In addition, when a consumer files for bankruptcy, creditor can only collect any amount due to them at extra cost. In most cases, they will have to use a number of collection methods, and spend a proportion of what is due them on legal services. Therefore, foresighted creditors always welcome negotiation. Through this process they can collect the remaining one easily and quickly at no additional cost.
One reason why you should use debt negotiators instead of going it yourself is that negotiators sometimes represent thousands of consumers with total debt running into the billions. Owing to this fact creditors always find their proposal irresistible. They are well aware of how much they can recover by acceding to negotiator’s request. Thus, through negotiation, you can discharge your debt legally. No loan, no personal bankruptcy!
Bankruptcy may cling to you for a lifetime
Another reason why you should seek alternative to personal bankruptcy is that bankruptcy may blemish your financial profiles for a lifetime. In the process of filling application for credit, are you not often asked if you have ever filed for personal bankruptcy? Why do they ask? And how would you answer? Can you escape the fact perhaps by giving the wrong answer? Be careful! That would be a very serious federal offense. In fact, bankruptcy ruin you financially because impact negatively on your credit rating for a very long time. In some cases, it may take up to two decades to erase.
All indicators point to alternatives to personal bankruptcy as the best choice. If you are declared bankrupt today, are you sure you will not find yourself in the same situation tomorrow? How many times do you think you can file bankruptcy in a lifetime? Besides the fact that law of the United States backs bankruptcy, it has serious effects on others. Bankruptcy also involves moral uprightness. Why? At the point of purchase, mortgage loan application, car loan application, and credit cards application the consensus is that I will pay. Suffice to say that this is personal opinion, and in no way a generalization. The most important reason why you should seek means to pay off your debts is the moral obligation involve. That is my strongest reason. What about you? Seeking the available alternatives to bankruptcy demonstrates integrity, fidelity and love.
Wednesday, November 14, 2007
Five (5) Top Alternatives To Personal Bankruptcy
“America is in the midst of bankruptcy crisis” says a former U.S. senator. Since U.S bankruptcy laws were established a centaury ago, some twenty millions Americans have filed for personal bankruptcy, and more than half of this have done so since 1985. By the middle of 1998, bankruptcy filings were estimated to be 1.42 million since the last one year. Why the attraction? Why the astronomic figures? Alan Greenspan of U.S. Federal Reserve had this to say: the dramatic increase in bankruptcy can be partly attributed to changes “in the stigma associated with the issue of going bankrupt”.
Whatever is the case, bankruptcy should not be so attractive considering that after effect can be wormwood. At this time your may have become insolvent and are considering filing for personal bankruptcy. Please before you proceed with your plan, stop, think and consider the following.
Change your attitude
The first and the most important step in this direction is to change your approach to financial matters. A critical self-examination is imperative. This is so because, even if you file for bankruptcy and discharge your debt today, that does not mean getting out of debt forever without a substantial change in orientation and thought. Many bankruptcies today do not result from insufficient pays, but inability to control one’s spending. This can be seen in the fact that America are more prone to filing bankruptcy more than any other nationals. Therefore, a change toward a more financially responsible lifestyle is a viable Alternative to personal bankruptcy.
Debt consolidation
This is a process that allows you to consolidate your debt to a single creditor. This new creditor borrows you money to pay debts that are already matured. The main advantage of these is that you pay off several creditors. This gives you a clean bill of health financially because your debt now is new one and you have more time to pay. To enjoy this service you must develop a concrete plan of action. When he see how plan to settle you debt he be more incline to assist, even improve the quality of your proposal. A debt consolidator understands your situations better. He is also more experience in debt management, therefore can give the needed support. When this is done it is advisable to pay off higher debt and also the one with highest interest rate. The latter especially should be considered first.
Dispose some belongings
It is better to sell your house, if you own one than to go bankruptcy. Selling off your house does not in any way reflect poor judgment. It may be possible to pay off your debt and buy a small house. You could also dispose some of your cars, if you have more than one. There people who had sold their only car to avoid personal bankruptcy.
Bankruptcy is not only a legal matter. It also involves morality and our conscience. At the point of purchase we promise to pay at due date, that only is sufficient reason to try as much to pay our debt. If you were buried under a landslide, you would use whatever mobility you had to start digging yourself out. It may be slow, but it works. Remember, no matter how lo0ng or how difficult it may be to do it, getting out of debt is well worth it. Apart from the fact that bankruptcy leave a blemish that will take years to remove, the effect of on others are enormous.
Consult debt counselor.
The main duties of debt counselors are to give sound advice, tailored to your peculiar financial situation. He is able to give advice and recommendation that can stand the test of time. A debt counselor is more experience than an individual debtor. He is exposed to different financial problems on a daily basis. He thus could leverages his experiences and proffers solution to your financial burden.
Discuss with your creditors
Creditors are not sure whether they will get their money when a debtor becomes bankrupt. This put a greater pressure on the business. Therefore, creditors are always happier when you discuss and negotiate your debt burden with them. Remember, they want to know what you are doing. Keep them informed. The one thing no creditor will tolerate is silence. Silence is quickly interpreted as indifference or refusal to pay. They will really accept lesson amount they are sure of getting then what they are not sure of. As the sayings goes: “a bird in hand worth more than thousand in the bush”. This saying had more meanings to those leave around or had visited a tropical rain forest. So do creditors when this had been done pay the remaining.
There are compelling reasons why you should seek alternative to bankruptcy. If you take pleasure in getting out of debt through bankruptcy, you may be tempted to go bankrupt again. Bankruptcy dents serious blow on your financial rating. Do not forget, bankruptcy is not a wholly legal matters, it involves morality, fidelity and integrity
Whatever is the case, bankruptcy should not be so attractive considering that after effect can be wormwood. At this time your may have become insolvent and are considering filing for personal bankruptcy. Please before you proceed with your plan, stop, think and consider the following.
Change your attitude
The first and the most important step in this direction is to change your approach to financial matters. A critical self-examination is imperative. This is so because, even if you file for bankruptcy and discharge your debt today, that does not mean getting out of debt forever without a substantial change in orientation and thought. Many bankruptcies today do not result from insufficient pays, but inability to control one’s spending. This can be seen in the fact that America are more prone to filing bankruptcy more than any other nationals. Therefore, a change toward a more financially responsible lifestyle is a viable Alternative to personal bankruptcy.
Debt consolidation
This is a process that allows you to consolidate your debt to a single creditor. This new creditor borrows you money to pay debts that are already matured. The main advantage of these is that you pay off several creditors. This gives you a clean bill of health financially because your debt now is new one and you have more time to pay. To enjoy this service you must develop a concrete plan of action. When he see how plan to settle you debt he be more incline to assist, even improve the quality of your proposal. A debt consolidator understands your situations better. He is also more experience in debt management, therefore can give the needed support. When this is done it is advisable to pay off higher debt and also the one with highest interest rate. The latter especially should be considered first.
Dispose some belongings
It is better to sell your house, if you own one than to go bankruptcy. Selling off your house does not in any way reflect poor judgment. It may be possible to pay off your debt and buy a small house. You could also dispose some of your cars, if you have more than one. There people who had sold their only car to avoid personal bankruptcy.
Bankruptcy is not only a legal matter. It also involves morality and our conscience. At the point of purchase we promise to pay at due date, that only is sufficient reason to try as much to pay our debt. If you were buried under a landslide, you would use whatever mobility you had to start digging yourself out. It may be slow, but it works. Remember, no matter how lo0ng or how difficult it may be to do it, getting out of debt is well worth it. Apart from the fact that bankruptcy leave a blemish that will take years to remove, the effect of on others are enormous.
Consult debt counselor.
The main duties of debt counselors are to give sound advice, tailored to your peculiar financial situation. He is able to give advice and recommendation that can stand the test of time. A debt counselor is more experience than an individual debtor. He is exposed to different financial problems on a daily basis. He thus could leverages his experiences and proffers solution to your financial burden.
Discuss with your creditors
Creditors are not sure whether they will get their money when a debtor becomes bankrupt. This put a greater pressure on the business. Therefore, creditors are always happier when you discuss and negotiate your debt burden with them. Remember, they want to know what you are doing. Keep them informed. The one thing no creditor will tolerate is silence. Silence is quickly interpreted as indifference or refusal to pay. They will really accept lesson amount they are sure of getting then what they are not sure of. As the sayings goes: “a bird in hand worth more than thousand in the bush”. This saying had more meanings to those leave around or had visited a tropical rain forest. So do creditors when this had been done pay the remaining.
There are compelling reasons why you should seek alternative to bankruptcy. If you take pleasure in getting out of debt through bankruptcy, you may be tempted to go bankrupt again. Bankruptcy dents serious blow on your financial rating. Do not forget, bankruptcy is not a wholly legal matters, it involves morality, fidelity and integrity
Your Undefeatable Guards Against Personal Bankruptcy.
Your Undefeatable Guards Against Personal Bankruptcy.
The prevalence of bankruptcy today certainly does not result from insufficient income. Neither do high cost of living explains why so many people are fatally attracted to filing for bankruptcy. Therefore, more money would not solve this problem that have engulf
our society in an unprecedented scale.
What though can be done to avoid this chapter that is better left unread? What precaution can help to stem the tide?
Resist the urge toward instant gratification
Instant gratification can be defined as the attitude of many today which is gear toward having all you want now irrespective of whether you have the means or not. This in part account for the reason many are bankruptcy today. They want every things at once and its easy! “Good or bad credit record, you are qualified” has become the slogan of many finance companies. A young husband sums his experience this way: TV payment per month is just $52, the CVR further increase the payment to $78. The furniture though was a bit expensive it monthly installment is $287, the drapes and the carpet only add $46.5 to the sum. He had it that way just simple but it exhaust his paycheck. There was no provision for contingencies.
Learn simple resistance
As you enter through the banks’ entrance you are immediately greeted bombarded with army of product promising a more secure and comfortable life. Loans that are targeted at you, overdrafts, salary advance, and so on. The list is endless. On the road and around your neighborhood the situation remains the same. There is no place to hide so to speak.
As you enter yours home and turn on the television, you are equally greeted with most penetrating pictures and messages. I bet you there is no end to scientific advancements and innovations of this age. Some decades ago, it was desktop computer, then laptop. While many in developing lands are struggling to get a laptop, it has been push aside by notebook in the advanced world. Some years back cameras that make use of negatives films that allow for multiple printing of single exposure was fashionable. Today, the rush is towards digital camera that defines images in mega pixels. You cant have them all, thus its only wise to simply say no, so that you do spend yourself to bankruptcy.
Debt management
The basic tenet of debt management is: do not buy what you don’t need and cannot afford. Ability to reject debt is central to effective debt management. Learn to make prudent use of your resources irrespective of whether its much or little. If many countries of the world are heavily indebted today due to poor management policies, it only stand to reason that individual learn to manage their finance well to avoid personal bankruptcy.
Do not borrow for luxury items
In addition to items that are article of ostentation, items that are sometimes considered
Necessity may at another time become luxury. Example is someone who has a television set in his living room may desire another one in his bedroom. What if you already have a laptop, but still want a notebook? It would tantamount to financial suicide to go borrowing to buy these items. Luxuries are items we can do without.
Do no take vacation trip unless you can afford to pay before you go.
Vacation trips are very necessary in view of today’ s frenzied work environment. It can contribute significantly to productivity, good health, and happiness. However, vacation is not like time. While you cannot save your time for future use, you can postpone your vacation until you are capable of financing it. Therefore, if you can’t afford the cost do not go. Vacation is better enjoy when you paid for it and don’t have debt waiting behind.
Avoid impulse buying
Do not but simply because is half the original price. It’s not a bargain for you, if you cannot afford it. Your buying decision should be dictated by your well-established budget. If you don’t have a budget yet try and establish one. A budget is a written document detailing all your expected revenue over a period of time and how you wish to expand them. For an individual the period is usually monthly. When you have established it, make sure your follow it religiously. Do not buy base on emotion or spurs-of-the-moment. It is important to note that associates can impact strongly on you buying decision. Therefore be focus and don’t allow others to dictate for you.
The prevalence of bankruptcy today certainly does not result from insufficient income. Neither do high cost of living explains why so many people are fatally attracted to filing for bankruptcy. Therefore, more money would not solve this problem that have engulf
our society in an unprecedented scale.
What though can be done to avoid this chapter that is better left unread? What precaution can help to stem the tide?
Resist the urge toward instant gratification
Instant gratification can be defined as the attitude of many today which is gear toward having all you want now irrespective of whether you have the means or not. This in part account for the reason many are bankruptcy today. They want every things at once and its easy! “Good or bad credit record, you are qualified” has become the slogan of many finance companies. A young husband sums his experience this way: TV payment per month is just $52, the CVR further increase the payment to $78. The furniture though was a bit expensive it monthly installment is $287, the drapes and the carpet only add $46.5 to the sum. He had it that way just simple but it exhaust his paycheck. There was no provision for contingencies.
Learn simple resistance
As you enter through the banks’ entrance you are immediately greeted bombarded with army of product promising a more secure and comfortable life. Loans that are targeted at you, overdrafts, salary advance, and so on. The list is endless. On the road and around your neighborhood the situation remains the same. There is no place to hide so to speak.
As you enter yours home and turn on the television, you are equally greeted with most penetrating pictures and messages. I bet you there is no end to scientific advancements and innovations of this age. Some decades ago, it was desktop computer, then laptop. While many in developing lands are struggling to get a laptop, it has been push aside by notebook in the advanced world. Some years back cameras that make use of negatives films that allow for multiple printing of single exposure was fashionable. Today, the rush is towards digital camera that defines images in mega pixels. You cant have them all, thus its only wise to simply say no, so that you do spend yourself to bankruptcy.
Debt management
The basic tenet of debt management is: do not buy what you don’t need and cannot afford. Ability to reject debt is central to effective debt management. Learn to make prudent use of your resources irrespective of whether its much or little. If many countries of the world are heavily indebted today due to poor management policies, it only stand to reason that individual learn to manage their finance well to avoid personal bankruptcy.
Do not borrow for luxury items
In addition to items that are article of ostentation, items that are sometimes considered
Necessity may at another time become luxury. Example is someone who has a television set in his living room may desire another one in his bedroom. What if you already have a laptop, but still want a notebook? It would tantamount to financial suicide to go borrowing to buy these items. Luxuries are items we can do without.
Do no take vacation trip unless you can afford to pay before you go.
Vacation trips are very necessary in view of today’ s frenzied work environment. It can contribute significantly to productivity, good health, and happiness. However, vacation is not like time. While you cannot save your time for future use, you can postpone your vacation until you are capable of financing it. Therefore, if you can’t afford the cost do not go. Vacation is better enjoy when you paid for it and don’t have debt waiting behind.
Avoid impulse buying
Do not but simply because is half the original price. It’s not a bargain for you, if you cannot afford it. Your buying decision should be dictated by your well-established budget. If you don’t have a budget yet try and establish one. A budget is a written document detailing all your expected revenue over a period of time and how you wish to expand them. For an individual the period is usually monthly. When you have established it, make sure your follow it religiously. Do not buy base on emotion or spurs-of-the-moment. It is important to note that associates can impact strongly on you buying decision. Therefore be focus and don’t allow others to dictate for you.
Subscribe to:
Posts (Atom)
