Sunday, June 7, 2009

What Christian Bankruptcy Entails

By Peter Gitundu

Financial distress can happen to anyone. It chooses neither race nor the religion of an individual. It has many causes, among them long illnesses that bring about huge medical expenses or even a student loan that has to be paid monthly. Other reasons for this could be overuse of credit cards on consumer goods which end up attracting big interest rates that the card holder may not be able to pay in good time.

The more it remains unpaid for, the more the interest rates escalates. Christian bankruptcy however takes a different look at this issue. Followers of Christ are just but managers of what God has put in their care and they should handle it responsibly. Christian bankruptcy argues that it would be wrong for a Christian to think that they can just borrow and then walk away from it. Under chapter 7, those who cannot repay their debts are forced to sell off their property in order to pay their debts.

Paul urges the followers of Christ to be just like Christ and owe nobody. Those who opt for Christian bankruptcy should make sure that they repay what they owe to others. They should not forgo their responsibility of paying back what they owe but should do whatever they can to pay back debts.

It is evil to borrow and not pay off the debts as the Bible teaches in Psalms 37. It states that the evil person borrows money and does not pay back. The child of God should therefore honor the policy of honesty. They should not abuse their creditors by not paying them.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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What Can I Do About The Bankruptcy on My Credit Report?

By Tony Banks

Generally, bankruptcies have a life span of 10 years on credit files. After it has exceeded this time frame, it ought to be deleted from one's file, but since the reporting bureaus and the creditor that furnished the account with them do not get any benefit for deleting it, naturally it becomes your own responsibility to ensure that it is removed.

Since the duration for which one's file remains clean and free of negatives accounts for a good 15 percent of one's scores, it becomes imperative to take measures to delete negatives in order to gather some good increase in points.

Take time out to compose letters that you will be sending to reporting agencies to get bankruptcies deleted from your file. Your priority when sending dispute letters to the bureaus should be a certified mail so you can easily track it.

If you have got several other negative accounts you need to get rid of, you will be writing separate letters for them as agencies label letters containing more than one subject of dispute frivolous and they have the right to do so.

But since the backing of the Fair Credit Reporting Act gives you the prerogative to order any bureau to launch an investigation into an information whose origin you do not know, then you must exploit this opportunity in getting negative accounts deleted from your file.

Credit bureaus typically have 30 days to conduct their investigation and if they fail to make any form of verification on a bankruptcy placed on your file, then they are required by law to delete it.

In a situation where you do not think you will be able to undergo the repair tasks needed to restore a good rating, trying the services of a repair firm will be a good consideration since that's what they do for a living.

Visit do-it-yourself-credit repair or credit repair services to learn more on raising your credit score 200+ points to get approved for car, home and credit card loans.

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Saturday, June 6, 2009

These Are Some of the Consequences of Filing For Bankruptcy

By Peter Gitundu

When you file for bankruptcy, you should have an idea of what the whole process holds in store for you in terms of the consequences that you will have to face. There are both the positive and negative outcomes of filing a petition of insolvency. You should therefore weigh the options and see whether the outcomes are worth the hassle. This is why it is so highly advisable to only consider filing for insolvency as the last resort because in most cases, bankruptcy will weigh heavily on you and will wear you out, financially and psychologically.

The consequences can be categorized into different factions, which include financial, legal as well as vocational. To begin with the legal aspects, you may get a bankruptcy restriction order. This is especially if the events leading to your financial crisis are illegal by nature. These activities include gambling, speculation and theft.

On the financial aspect, you will lose much of your assets, but again depending on the chapter under which you file a petition. If you do so under chapter 7, you are bound to lose much because the chapter calls for the liquidation of your assets. Furthermore, your account is bound to be closed down and you might have to begin from scratch. Getting credit facilities will also prove hard especially at the mention of insolvency. What may not be affected much are car loans and mortgages.

The vocational consequences refer to how your career and job aspirations will get affected. If you are a lawyer or a company director, be assured to lose your job. Potential employers will tend to keep off, until you have worked on rebuilding your credit rating. If you are in business and a sole trader for that matter, your business will close down and your employees dismissed.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Personal Bankruptcy Filing Options

By Peter Gitundu

Before filing for bankruptcy, it is always advisable to consider all the other available alternatives that may work for you. They include talking to your creditors and having them agree to accept a lesser amount as the total debt settlement. You could also ask them to give you more time for you to reorganize yourself and start making monthly installments towards settling the bill.

For individuals who really need to file for bankruptcy, chapter 7 which is also known as personal insolvency is considered to be more appropriate. It is concerned with liquidation of your assets so as to repay your creditors. You are supposed to give up a reasonable portion of your assets to be sold off to cater for your debts. The amount of assets you give up should be enough to cover a proportionate portion of your debts.

The good thing with personal bankruptcy is that your debts will be discharged within a very short time and your name cleared from the list of insolvents within 12 months. This is short enough period of time in which you are able to quickly recover from the mental turmoil that is characteristic of insolvency.

Filing for personal insolvency will put a stop to the efforts of your creditors geared towards recouping what you still owe them. If you work with an attorney, he might just be able to bargain a good deal for you and you could have most, if not all of your debts forgiven. This is if you could be able to prove that the circumstances leading to insolvency are truly genuine and nothing of your own doing.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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How to Deal With Christian Bankruptcy

By Peter Gitundu

Bankruptcy is caused by many things among them long illnesses, especially in cases of people who do not have medical insurance. In this case, it might be as a result of recklessness as cases of Christian insolvency seem to assume. The Christian ideology looks at a bankrupt person as one who is irresponsible, since Christians are the steward of Gods property on earth. They should therefore treat this as a treasure and look after it as the Creator expects of them.

Christian insolvency could be accepted only among the poorest in the society. This is according to teaching in the Old Testament. In the olden days of the Bible, those who owed others were to work in their creditors fields to repay what they owed. It was only on the seventh year or what was commonly referred to as the Sabbath day that the debtor would get a relief and his debt would be canceled.

Christian bankruptcy, from the New Testament point of view teaches that Christians or those who wish to be like Christ should not owe anything to others. This does not mean that a Christian cannot borrow money to finance personal developments, but instead they should honor promises of paying back what they owe others. It also means that they should not borrow carelessly in order to be like others or for show off purposes. They should weigh their options to see if this is really a need or they can do without the debt.

It is wise for those called to be like Christ to be stewards and managers of what God has put in their lives. They should do away with bad spending habits to avoid situations that may lead others astray or that may lead them to file for financial distress.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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How Bankruptcy Affects Spouses

By Peter Gitundu

Bankruptcy is a legal procedure in which a person who is not able to pay debt seeks relief in court. There are many chapters under which a petition can be filed. The liquidation chapter allows the debtor to have the assets on his name to be sold in order to pay off pending debts.

Chapter 13 allows the debtor to keep the assets but continue payments from the monthly income they get. Bankruptcy may affect the spouse of the debtor and the entire family as well. Insolvency affects spouses in many ways including mental torture. When a partner files a petition, many go around wondering what their neighbors will think of them.

They worry about their friends knowing about the situation and how they will take the news of the bankruptcy. This will mostly happen with people who claim a high social life. Insolvency affects a spouse at times to the extent of becoming depressed and withdrawn. Another way in which it affects spouse is when one of the partners files a petition and part of the property they hold together is lost in the process.

Sometimes creditors may continue to press charges to have the assets liquidated which may cause great problems for both. It is normally fair that only the partner who has debts and is not in a position to pay files the petition than dragging the other party into it. It is quite unfair for a debtor to harass a partner who has no debts at all.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Friday, June 5, 2009

Filing Personal Bankruptcy - Must Know Facts and Advice

By Bai Zijian

Reasons for Filing Personal Bankruptcy

Unemployment has reached a particularly high increase. Determining to file isn't a comfortable call for the majority of the people. Most of the people need to Pay Their Bills: There are some folks who start with the point of filing personal bankruptcy.

Considerations before Filing: The most evident condition and effect is the credit rating. There are events to filing bankruptcy that should be counted. Bankruptcies remain the credit files for ten years. Bankruptcies remain the credit files for 10 years.

Subprime credit analysis often remains the report for seven years, so three additional years may not look that bad. It Is A Moral Call for Many : One have been instructed to pay what they owe. It Is A Moral Call for Many: One have been instructed to pay what they owe. For many walking off form responsibility becomes an ethical call. Drowning in debt will never give productive citizens. The economy needs generative voters to operate. Drowning in debt will never give productive voters.

Is It Right for You: Determining if it is the correct decision is an individual one. Is It your bag: Determining if bankruptcy is the right call is an individual one. No to people or conditions are similar. No to folks or conditions are similar. Getting the recommendation with the solicitor is a handy place to start.

Most lawyer offers a free primary reference. Mistakes in Filing non-public Bankruptcy: the greatest mistake made by folks filing bankruptcy is arresting the choice to do so. Mistakes in Filing private Bankruptcy : the biggest mistake manufactured by folk filing bankruptcy is arresting the choice to do so. That is the initial cautionary sign. That is the 1st cautionary sign.

Once one has made a determination to file personal bankruptcy do not review. Once one has made a determination to file non-public bankruptcy don't review. Once one has made a determination to file private bankruptcy don't review. Should one decide filing bankruptcy isn't acceptable for the individual, the same precept is applied.

There are many more reviews about many other good and powerful debt free systems, that you can check out. Also check out on information on the filing bankruptcy that you must know and remember.

Find out all about debt free in three. Bai Zijian's website talks more about filing personal bankruptcy in detail and has tips on how to handle with it.

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Filing Bankruptcy - Dealing With the Stigma

By Gerard Simington

Falling on your face is rarely much fun. Announcing it to others is even less so. Well, bankruptcy is the metaphorical equivalent of falling on your face financially. Traditionally, filing bankruptcy has had a stigma attached to it. Let's take a look at that.

There is a particular commercial on television I happen to love. You might have seen it. It shows a man married to a beautiful wife with two kids. He lives in a nice house. It has a pool. He plays golf and so on. Then they do a close up of him and he says "I'm up to my eyes in debt. Help!"

While the commercial is good for a laugh, it is also incredibly accurate. Keeping up with the Joneses in America means living on the financial edge for most people. When things go bad, as they have recently, many people fall off of that cliff. In such a situation, bankruptcy is often the only choice they have left. If the potential stigma of filing causes you pause, there are a couple of things to consider.

The current economic climate is such that tens of millions of people are in financial distress. With things so bad, is there really still a stigma related to filing bankruptcy? How many people have lost their homes because they couldn't refinance when values dropped like a rock? The vast majority of them ended up in bankruptcy. What about people who lost their jobs? You know where they ended up. If there is still a stigma with filing bankruptcy, it has to be a pretty small one.

Let's assume the stigma of filing bankruptcy still exists. In fact, let's assume it is a horrible stigma - the equivalent of wearing a red B on your chest like in the Scarlett Letter. So what? Ask yourself this question. Who is going to know you filed bankruptcy? Nobody is going to know other than your lawyer, a judge and a few creditors who probably go by the name HSBC credit card company and Capital One credit cards company. Your friends and family are not going to know unless you tell them!

Ah, but won't filing bankruptcy ruin your credit? Yes! If you are considering filing bankruptcy, however, your credit is probably already shot up. You should file bankruptcy if you are insolvent. As a general rule, people in good financial shape don't file bankruptcy.

You have the legal right to file bankruptcy if you so desire. Are there downsides to doing so? Of course. If you are in a heap of financial trouble, however, bankruptcy often is your last best choice. The only way to know if it makes sense for your particular situation is to sit down and talk with a bankruptcy attorney.

Gerard Simington writes for - find New York bankruptcy attorneys and lawyers near you with our free directory.

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Disadvantages of Personal Bankruptcy Filing

By Peter Gitundu

Just like there are two sides to every coin, there are advantages and disadvantages to bankruptcy, and in particular, personal insolvency. It is said to be an option to filing for insolvency, but take note that it should only be considered when all else fails. You should then weigh the pros and the cons and see whether you really need to go the personal bankruptcy way.

Personal insolvency, like all other forms of relief from financial distress, puts you under a lot of scrutiny financially. Any firm you approach for lending will want to know about your credit history. At the mention of insolvency, many may shy away and not be willing to extend any loan facilities to you. If they do, they will charge you a high interest.

You may also receive a bankruptcy restriction order if the circumstances leading to your insolvency were activities of mere carelessness like gambling and speculation. If this happens, your name remains in the records for a period of 15 years. This will again affect your credit rating and most of your business transactions will be conducted through the bank.

With personal insolvency, you risk losing your family home. Remember that personal insolvency has been defined as a situation whereby you give up a portion of your property to get a discharge from your debts. Some of the assets you will have to give up are both the movable and immovable properties and this includes your own home. If your home is sold off and the proceeds are still not enough to cater for the debts, they will still come for more of your assets till you have nothing more that can be sold off.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY. If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Considerations Surrounding Filing For Bankruptcy

By Jon Arnold

If you are considering filing for bankruptcy, you should weigh your options carefully before actually making this decision. Now, some may scoff at such a notion since time is certainly not something individuals in dire financial straits may have much of. When debts are out of control and creditors are calling in a seemingly endless fashion, it would seem bankruptcy would be the proper quick fix. Actually, it is not at all a quick fix as bankruptcy remains a very complex legal process that is certainly not for those unprepared for it.

There are those that may believe bankruptcy is a "do-it-yourself" process that can be handled in a relatively easy manner. At one point, this was the case but abuse of bankruptcy filings led to the passage of much stricter bankruptcy laws. As a result, it is a much more complex process than it had been in the past. Additionally, bankruptcy is not filed on the federal level and this means your particular state may have tougher requirements than what might exist elsewhere. In fact, nowadays you must be approved to file, and there is no guarantee that you will even be approved to file!

Of course, the easiest way to circumvent dealing with all these complex issues would be to hire a bankruptcy lawyer. This means you will now be responsible for paying legal fees associated with the bankruptcy filing. Obviously, this could further drain your finances if the proceedings drag on and on. But, if you have no other options, you really do not have a choice do you? Well, when it comes to filing for bankruptcy, how do you know you do not have other options available? Often, even people that are in extremely serious financial difficulty have options available to them that could help them get out of debt in a much more efficient and less stressful manner than filing for bankruptcy. That is why it is helpful to undergo a bankruptcy evaluation prior to making any decisions to file.

A bankruptcy evaluation will look at your current financial situation and compare various other factors in regards to your net worth. From this, a clear opinion can be raised as to whether or not bankruptcy is the right option. If it is, then so be it. If it is not, then there is clearly no reason to engage in the long and complicated process of bankruptcy when a much better alternative would present a much better conclusion to the problem.

What are some of these better options? There are many and some are much easier than most would assume. For example, a debt consolidation loan may be enough to create breathing room for someone to get into better financial shape. In fact, even something as simple as lowering a minimum monthly payment may be all that is necessary. And, in serious situations, exploring the options available through a debt settlement offer is a viable alternative. Ultimately, the strategy you take will be based upon you own unique, individual situation.

The moral here is that filing for bankruptcy should never be the first priority for anyone in debt. Instead, it is best to explore all available options and arrive at the best possible decision.

For more insights and additional information about Filing For Bankruptcy as well as getting a free bankruptcy evaluation from a qualified and experienced bankruptcy lawyer in your local area, please visit our web site at

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Thursday, June 4, 2009

Consequences of Bankruptcy

By Peter Gitundu

We have to be accountable for every course of action we take as we try to get out of a financial crisis. Many people file for bankruptcy when they come to a point where they have no hope financially. Wile this gives them some temporary relief from the burden of the debts, it comes with some consequences, both favorable and favorable.

Looking at the bright side, bankruptcy gives you a break from the constant harassment of your creditors. Once you file the petition, your creditors are notified and they are given an order not to try to recoup anything until the repayment process is put in place.

What is most discouraging about filing for bankruptcy is the fact that your image and credit rating will negatively be affected. Your name will be published in the gazette and anyone may just find out about your position. This affects you in the corporate world because you risk losing your job if you are in professions like law or you hold a leadership position in a company.

If you are used to living your life on credit, you will find it so hard to acquire loans from lending firms. You will be put under so much scrutiny and the mention of insolvency will raise eyebrows. If you hold a bank account in any bank, it will be closed down and you will be forced to open up another one for the sake of those transactions you carry out through the bank. Life will be tough in between the 10 years your name will be in the insolvency records, but be strong because you can work on rebuilding your credit rating, step by step.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Can I File Bankruptcy Again?

By Jay Fleischman

If you have filed bankruptcy in the past, and you've found yourself in financial trouble again, you're probably wondering if you are eligible to file for bankruptcy protection again. Filing for bankruptcy a second time is rarely a pleasant thought - but if you're struggling with debt, you need to know if this is an option for you.

In truth, there are no limits on how many bankruptcy petitions you can file; however, in order to receive a second discharge, you'll have to wait a certain amount of time between filings.
The amount of time depends on the type of bankruptcy you previously filed, and the type that you intend to file now. Here are the guidelines for bankruptcy filing eligibility:

· If you previously received a Chapter 7 discharge (which erased your debts, rather than restructuring them), you will have to wait 8 years before you can receive another Chapter 7 discharge. If your second filing will be for Chapter 13 protection (which reorganizes your debts), the waiting period is 4 years.
· If your previous bankruptcy was a Chapter 13, you'll have to wait 2 years before receiving another Chapter 13 discharge. If you're seeking a Chapter 7 discharge, 6 years must have passed since your Chapter 13 filing.

Keep in mind that the time periods are measured from filing date to filing date, not from discharge date to filing date.
Also, there are exceptions to all of these rules, so you may be able to file before the end of the waiting period in certain cases. If you are considering another bankruptcy, contact a bankruptcy attorney to find out if you qualify for an exception.

New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to to learn more about your options, ask questions, and get more information.

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Bankruptcy Laws That Are Debtor Friendly - Why It's Easier For Congress to Throw Money Up in the Air

By Alex Wathen

My perspective may be different than in Washington, but as a San Antonio bankruptcy attorney I cannot agree with how things are done on Capitol Hill. Back in 2005 the Bankruptcy Abuse Prevention and Consumer Protection Act BAPCPA passed with the blessing of 74 senators both Republican and Democrat. Now that our economy has gone south it still seems to difficult for Congress to do the right thing. They do not hesitate to spend trillions of dollars on bailouts benefiting corporate America, yet they cannot seem to enact simple reforms that benefit regular Americans such as those who need to modify their home mortgages.

The mortgage modification bill only garnered the support of 45 senators, none of whom were Republican and a number of Democrats also defected. The stimulus on the other hand even got Republican votes. The problem is that the stimulus bills have mortgaged all of our futures throwing money up in the air and hoping it will land in the right place. The mortgage modification bill would cost the tax payers very little but would not only benefit consumers but it would also fix the mortgage industry and cut their losses from empty homes. The industry cannot fix itself because their hands are tied behind their backs due to contracts with the investors who bought securities backed by the mortgages.

In this morning's weekly radio address, President Obama emphasized the need to pass the credit card disclosure bill. This bill even though it sounds good is of marginal help to consumers. While it would put the breaks on retroactively changing interest rates on existing balances and require more upfront disclosures, it will only take a small dent of out the credit card debt of most consumers. Even if Congress would fail to pass it consumers would still get these benefits in the form of a regulation rather than a statute.

The question is why did Obama not stand up for the mortgage modification bill. Why did he not help line up the votes in the Senate. How could he not use any political capital to get the nine Democrats who voted no to vote yes including recent convert Senator Specter. How about the two moderate Republican Senators from Maine? Obama did not deliver passage of S. 61 because it was not a priority to him. Ironically that the one thing that could probably have made the most difference for the economy and the most people in distress was not a priority for our President. That is sad indeed.

Alex Wathen is a San Antonio bankruptcy attorney with offices in San Antonio and Houston. He is Board Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization and serves on the Board's Bankruptcy Exam Commission. He also represents clients in a number of bankruptcy appeals. He frequently argues cases before federal courts of appeal and is a frequent speaker at seminars. You can follow him on Twitter at SABankruptcy, as well as FedCourtAppeal and FightTexTickets.

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Bankruptcy and Marriage

By Joseph Devine

When two individuals join in a marital contract, it is said that their two lives become one. Although this is true with the matters of the heart, it is unfortunately also true when it comes to finances. In some cases, a married couple may find themselves entering into complicated territory when bankruptcy is introduced into the equation.

Questions raised by marriage and bankruptcy often include issues about who is liable for which debts, what creditors can reasonably expect to collect, and what happens when bankruptcy is filed before marriage or after divorce. For many people, it is often unclear what effect bankruptcy will have on their finances when marriage is factored into the equation.

Bankruptcy Filed Before Marriage

If a person files for bankruptcy before marriage, the judgments against the individual typically stay with that person into marriage. The spouse's assets are usually unaffected, but any applications for joint credit will be affected by the past bankruptcy filing. Any actions requiring credit together will be affected by the bankruptcy, even though it occurred before the marriage.

Bankruptcy Filed During a Marriage

If a person is married but files for individual bankruptcy, the court will often look at the finances of the person who filed, but also those of the spouse. A married couple may also file for joint bankruptcy, during which the financial situation and assets of both parties is usually thoroughly reviewed.

Bankruptcy Filed After a Divorce

Divorce proceedings are typically complicated affairs, and such situations can be further complicated by bankruptcy. When a married couple divorces, joint property is often divided and is considered separate property in the future. Divorce courts will often determine if the two individuals are still personally liable for joint debts, and if not, the non-filing spouse is typically not required to pay anything.

It is essential that any person who is considering filing for bankruptcy examine their financial situation carefully and consult a legal professional about any questions that may arise. For more information regarding marriage and bankruptcy, visit the website of Boston bankruptcy lawyer Joshua Spirn & Associates.

Joseph Devine

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Bankruptcy - Facing Debts Might Be Better For a Single Parent

By Ron Lovell

If you are a single parent, it is important that you understand the ramifications of filing for Bankruptcy. Looking at the long term picture is important before you jump into Chapter 7 Bankruptcy. Here is a typical scenario of a single parent that makes about $37,000 a year, is 32 years old with $32,000 in credit card debt and $7,300 in student loans with a car payment of $320 a month. This single parent is recently divorced because of a serious Internet Gambling problem which both of the parents had.

The majority of credit card debt was accumulated this last year and a half as a result of a divorce and the custody battle. The single parent has sole custody of their daughter and has a hard time making the monthly expenses plus paying the monthly minimums on the credit cards. This is a tough situation but not unsolvable.

It is important to look at other things besides getting out of debt thru Chapter 7. Look at the following:

1. Look at the children, what is their impression of a parent going going bust and their sense of financial security. How is this going to feel for the child when they know Mommy or Daddy can not take care of them. I remember how I felt when my and my brothers bicycles were repossessed because they could not make the credit payments. I still think about it to this day when I hear about someone losing something to the Repo Man.

2. A bankruptcy will stay on your credit report for 10 years. It is also possible to be turned down for jobs, places to live or insurance coverage. Remember that employers, landlords and insurers are now checking credit reports.

3. Eventually, when you finally start to re-establish your credit, it will be at a much higher rate than others with a good FICO Score. There are many hidden charges such as application fees that are higher than the norm.

4. The higher interest rates on your new loans will cost you more and not be available for your own retirement and your childrens college tuition.

5. If you take charge of your life and pay your debts off, your child will learn valuable lessons about responsibility and self-reliance. This is one of the best gifts you can give your child that a parent needs to face up to their own debts?

In conclusion, before you even consider Bankruptcy, you should contact the Consumer Credit Counseling Service in your area. This is a nonprofit group can help you negotiate with your creditors for better terms, as well as give you money management skills that you need to learn. Finally, join your local 12-step Program for Debtors Anonymous or Gamblers Anonymous. There are situations where bankruptcy is unavoidable. If yours is one of them, then contact an attorney to work it out. But remember to get all the facts before you file, and think of the consequences of what you are doing to both of you and your child's lives.

To learn more about your money and credit tips, visit our website at or

Ron Lovell is available as a professional speaker to help educate your community or group function on the effects of Financial Stability.

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Wednesday, June 3, 2009

5 Reasons Bankruptcy Might Be the Solution For You

By Jay Fleischman

If you are dealing with crushing debt, and you're tired of having creditors call you day and night, you might be wondering if bankruptcy is a good solution. Here are five reasons why bankruptcy might be the answer you've been looking for:

1) Your first priority is your family - you must place your own needs, and those of your family, over those of your creditors. It doesn't make sense to let creditors push you into paying them if it means your family has to go without.

2) In many cases, bankruptcy will actually improve your credit. That sounds counterintuitive, I know, but consider this: One third of your credit score is based on your debt-to-income ratio, so eliminating your debt gives your score a significant boost. If you have good credit, though, bankruptcy will lower your credit score - but only temporarily. If you establish at least 4 lines of credit after bankruptcy, you should be able to raise your score to the 600s or 700s within a couple of years.

3) The concept of bankruptcy is deeply rooted in history - even back to Biblical times. The Book of Numbers required debt forgiveness every seven years; likewise, cultures throught the centuries have recognized release from debt as an element of a productive society. Even the founding fathers of the United States saw debt forgiveness as important to entrepreneurship and risk-taking - they wrote uniform bankruptcy laws into the United States Constitution!

4) The chances you will regret a bankruptcy filing are next to zero. Bankruptcy lawyers almost never hear a client say that they wish they hadn't filed - in fact, most people will tell you that it's the best thing they've ever done. Being free from overwhelming debt and nagging creditors is well worth going through the filing process.

5) You will avoid garnishments, leins, and tax levies. It's a terrible feeling to discover that your wages have been garnished, or that your bank funds have been frozen. Bankruptcy gives you the assurance that this will never happen.

If you're in over your head, and you're ready for relief from the financial stress you've been carrying around, head over to to learn more about how bankruptcy can give you a fresh start - and help you enjoy your life again!

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Reasons For Filing Bankruptcy Cases

By Peter Gitundu

People in all parts of the world are being faced with bankruptcy every year. There are many reasons why people go bankrupt. One of the major reason being mortgages and loss of an income generating activity. Divorce, though not normally considered as a major cause of insolvency can cause real damage financially.

There are signs that help individuals to know that they are in a dangerous position that requires them to file for insolvency. In case one has had severe financial setback in recent years and they cannot budget themselves out of debt, then it is clear that they should consider insolvency as an option to help them out financial distress.

Bankruptcy does not cover all types of debts such as alimony. This is the money that is paid to a former spouse after a separation or a divorce. Other secured debts include payments towards child support which mainly happens after parents have divorced or in case of a child being born out of wedlock. The financial distress plan cannot cover payment of luxurious commodities bought within ninety days after filing the petition in court. Fraud is a serious case which can easily lead to imprisonment as such debt acquired out of fraud cannot be covered in the petition.

Insolvency is filed under chapter 7 in the U.S or under the wage earner which is chapter 13. The law chapter provides that all debts apart from the secured ones such as mortgage payments towards a spouse after separation or payment toward child support will be declared after filing a petition. Insolvency also allows one to make a repayment plan under the wage earner law.

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Reasons For Bankruptcy, Read More Of His Articles Here REASONS FOR BANKRUPTCYYou Can Also Add Your Views About Reasons For Bankruptcy On His Blog Here REASONS FOR BANKRUPTCY

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Some Bankruptcy Filing Options

By Peter Gitundu

Sometimes, there is usually a choice on what one can keep after the conclusion of a bankruptcy case. This is commonly referred to as the exemption scheme in which an individual chooses the items or assets they choose to retain. This is only applicable under the liquidation chapter and the debtor can choose the exemption scheme only when they have submitted a list of all the available assets together with an approximate value. Once this is done, through guidance, the debtor can choose what to keep or not.

Bankruptcy does not provide for the clearing of secured debts such as mortgages, alimony, child care or outstanding tax on a property. Under this law, reaffirmation is allowed. The debtor must reaffirm the asset in question only after he, under oath is questioned about his financial affairs in the presence of creditors and other involved parties.

Insolvency allows an individual, partnership or cooperation to file a petition under chapter 13. This is through making a payment plan towards the creditors within three to five years. Many of the people who file a petition under this law usually have those debts that chapter seven cannot wipe away. These could be mortgages on homes they would love to keep due to sentimental reason. They could also be child support and alimony or large amounts paid towards student loans.

In the case of bankruptcy, the debtor will require a stable amount of money after monthly expenses such as food, transport and other expenses have been deducted. Once the petition is filed together with a repayment plan, a trustee goes through it for flexibility and sends it to creditors to have it approved. If approved one can keep the assets.

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Bankruptcy Filing, Read More Of His Articles Here Bankruptcy Filing. You Can Also Add Your Views About Bankruptcy Filing On His Blog Here Bankruptcy Filing

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How Bankruptcies Affect Individuals

By Brian Krassenstein

A sad consequence of the current worldwide economic downturn is that more and more people are turning to bankruptcy as a way out of their financial difficulties. And if it wasn't for the social stigma of other people knowing about it, it`s likely that the figures for bankruptcies would be far higher than they already are. So, what does bankruptcy involve, and what are just some of the implications for individuals?

If a bankruptcy order has been made, it is advertised as an official notice in The London Gazette, and possibly-not always though-in a local newspaper. Rarely, it`s even advertised in one of the national newspapers. Bankruptcy allows a debtor to be freed from overwhelming debts so that a fresh start can be made, subject to some restrictions. Also, it ensures a person`s assets are shared out fairly among his creditors. Individuals, as well as businesses can go bankrupt. A debtor can apply for bankruptcy himself, which is voluntary bankruptcy, or involuntarily when the creditor applies to make the debtor bankrupt (subject to a minimum debt of £750). There are fees involved with going bankrupt, such as a fee to the County Court of £150, plus £345 for the Official Receiver`s work. In certain circumstances the £150 can be waived.

Although assets can be sold off to pay creditors, certain items such as equipment needed for work, and household items such as furniture and bedding are left alone. Bankruptcy normally lasts for one year. After this time, a person is 'discharged.' Restrictions as far as employment is concerned covers such jobs as a company director, charted accountant, lawyer, Justice of the peace, member of parliament, and a few more besides. None of these positions are allowed for those who are bankrupt. In addition a bankrupt can`t trade in any business under any other name unless he informs all persons concerned of the bankruptcy.

A bankrupt can`t obtain credit of £500 or more from any person without first disclosing the fact that he is bankrupt. The Official Receiver can look at a person`s income and decide if payments should be made to his creditors. He takes in to account allowable expenses as well as income. An 'income payments agreement' may then be made up by the Official Receiver so that fixed monthly installments from a bankrupt`s income is paid to creditors for three years. Although the bankruptcy order itself is for 12 months, sometimes it will last for a shorter period, other times a longer period lasting several more years if the debtor doesn't cooperate with the Official Receiver.

Check out the links for more information related to GPT Programs and Personal Finance forum.

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FAQs - Bankruptcy - 3 Common Questions You Probably Have About Bankruptcy

By Jason Rodriguez

Declaring personal bankruptcy is no laughing matter. It's a serious step that you will have to study carefully before making your decision, since filing Chapter 7 or Chapter 13 will affect your family's finances for a long time to come. That's why this article will cover some frequently asked questions about bankruptcy.

How much does it cost to declare bankruptcy?

Well, at the time of this writing, the cost for Chapter 7 bankruptcy filing is $274, while Chapter 13 would cost you $189. Keep in mind this is only the court filing fee and does not include your legal fees.

Has the new bankruptcy law made it more difficult to declare bankruptcy?

The new bankruptcy law passed in 2005 by Congress and signed by President George W. Bush has made the process more complex. However, contrary to popular misconception, bankruptcy is still available for many Americans who need help. There are some changes such as mandatory credit counseling and having to go through something called a means test in order to determine your financial needs based on income and expenses. This was supposed to keep people from abusing the bankruptcy process when they didn't really need it.

Do you really need a lawyer to declare bankruptcy?

Following up on the previous question regarding the new bankruptcy law, you have to understand the process has become more difficult. You really need a good bankruptcy lawyer who has kept up with all the changes and can give you the best possible advice for your particular scenario. Going it alone is really not a good option, and you should make sure that your attorney is paying attention to your needs and answering your particular questions. Generic advice is not good enough.

There are many more questions that you probably have regarding bankruptcy, and you would do well to continue to research the process before visiting a lawyer. This will help you become more informed so you can make better questions during your visit, and you may even save some money by not wasting time asking the most common questions. Keep in mind that a lawyer charges by the hour, and saving money is a good idea if your situation is bad enough to consider bankruptcy.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about FAQ bankruptcy visit us at

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2 Benefits of Personal Bankruptcy

By R.C. Bai

As we get more familiar with the term bankruptcy these days you also should know the benefits. With all the options available for people with debt problems bankruptcy is the only one that provides legal protection. Read on to find out what the major benefits are.

There are many cases today where a persons debt load is so big that bankruptcy is really the logical option. Of course the biggest drawback is the destruction of your credit score. Getting past that there are two major benefits that this options affords individuals.

Those two benefits are

  1. Protection - unlike other debt relief programs bankruptcy puts you under the protective umbrella of the courts. Lenders, collectors, liens and any other judgments are stopped. You will always have some collectors who ignore the law, but now that you know you rights those collectors risk lawsuits if they continue that practice.
  2. Automatic Stay - this is a similar type of protection that bankruptcy provides. Both chapter 7 and 13 have this provision and as soon as you file your papers this automatic stay kicks in. If you get calls from collectors all you need to do is refer them to your lawyer. Again, if they continue to harass you after you informed them about your bankruptcy consult with your lawyer about what to do. They are now breaking the law.

Your petition for bankruptcy still has to be approved by a judge and depending on what chapter you file will determine how your debt will be handled. Chapter 13 will be on your credit file for 8 years and chapter 7 will be 10.

There are several factors you should consider before you make your final choice. Also, if bankruptcy ends up to be your choice find out how to prepare for it before you file the papers.

To get more information about bankruptcy and other options go to the Debt Hub. This is an important decision. Get informed, get more answers and most of all get on with life. You have choices, it's time to use them.

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Personal Bankruptcy - A Very Stressful Thought

By Jon Arnold

In the majority of cases, merely considering personal bankruptcy is enough to panic somebody so much that they be tempted to panic and be reluctant to look at their financial troubles. Unfortunately, statistics indicate that around five people out of every thousand have seen themselves filing for personal bankruptcy and even more distressing, this number is rising. Additionally, studies from research companies show that the fundamental reason that people are filing for personal bankruptcy is due to extreme spending which accounts for excessive debt. If these same people then get the financial weight of unplanned and unforeseen situations this can throw their budgets into complete turmoil.

There are numerous reasons why an individual might elect to file for bankruptcy. Losing a job or paying for divorce proceedings are all too common as is the death of a spouse. All have the potential to indicate disaster for your money and budget. The typical person that selects to file for bankruptcy is normally one who successfully graduated from high school, is a blue collar worker, and is also the head of the household, even though they are in all probability in the class of lower middle income. At the same time this person is also going to have stretched their finances too far and probably relied heavily on credit in the past.

Laws presently are in place that work to protect both the creditor and debtor and these laws are in place to make sure that those individuals who are honest suffer as little as possible because of their financial mismanagement. The same laws also provide protection to the creditor and helps them to recover any funds they are owed.

If you are seriously considering filing for personal bankruptcy there are two choices available to you. The first is that you can opt to file for Chapter 7 bankruptcy. The second option is Chapter 13 bankruptcy and both differ quite substantially. Chapter 7 bankruptcy requires each of your assets (that are not exempted) to be sold off and the proceeds of these assets will be dispersed amongst your creditors to fulfill the debt owing to them.

Chapter 13 bankruptcy is a more or less gentler option in that it does not expect any elimination of your assets. It does however require you to reorganize your debts in such a way that you are able to pay off the debts over a timeframe of between three and five years.

One of the aspects that many individuals do not think of, however, is that the choice of which chapter to file is not their choice. This is a determination of the courts, who will make that decision after a careful inspection of your particular financial data. It is because of this that a bankruptcy lawyer is highly recommended so your data can be shown in the right light.

However, fear exists amongst many financial analysts who view personal bankruptcy as a real menace to the wellness of the economic system and there is good grounds for this. The count of individuals who file for personal bankruptcy is rising which in turn causes a disturbing trend. In turn this has prompted some dramatic measures being taken.

Only recently, in March 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was introduced and this forces individuals who file for personal bankruptcy to undergo a number of tests on the condition of their income and to cling to tighter regulations before they are permitted to declare this type of bankruptcy.

For more insights and additional information about a Personal Bankruptcy as well as getting a free bankruptcy evaluation from a qualified and experienced bankruptcy lawyer in your area, please visit our web site at

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