Bankruptcy Rebound
Posted on November 6, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
Life after Bankruptcy
In 2005, before the new laws took effect, my wife and I declared Bankruptcy Chapter 7. We made this decision because it would allow us to eliminate over $150,000 dollars in credit card debt and to start rebuilding our credit. We didn’t own our own home at the time, but if we had I’m sure that it would have been in Foreclosure. We hired the least expensive Attorney we could find and went to court. After the assessment, they determined we had about $9,000 in assets and would have to pay that off within 12 months. It came to about $750 a month, which was a lot less than what we were supposed to be paying on our credit cards. We hadn’t made a payment on or used our credit cards for about 2 years. It was tough making the Bankruptcy payments, but if we missed just one then we’d be back to owing the full amount and more. As you can imagine we got it done.
After our Bankruptcy was discharged we started looking for a company to repair our credit. We set up an appointment with Sam Sky and he reviewed our credit profiles. He pointed out many problems that could be addressed and said in about 9-12 months our credit scores should be increased significantly.
All we had to do was sign some paper work and they would take care of the rest. I have to admit that I was leery to begin with, being new to the process, but followed their credit restoration system as advised (which was basically sending them what we received in the mail). I waited about 4 months and couldn’t stand it any longer, so I went to the office and asked if we could check my credit score. To my amazement, my Equifax credit score went from a 503 to a 749! I couldn’t believe it.
Four months prior the bank had repossessed our mini-van, which we had excluded from the Bankruptcy in hopes that we could keep it. The next day, after finding out what my credit score Read more
Outwit, Outplay and Outlast Personal Bankruptcy
Posted on November 5, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
This year has proven to be an overwhelming financial hardship for most American families. The state of the nation and the economy have most Americans in a panic with the housing/mortgage crisis, job downsizing, and the ever soaring gas prices. As the trouble mounts, Americans are making some drastic decisions as to their financial future.
Declaring bankruptcy, for some, is the ultimate solution. Alan Greenspan of the U.S. Federal Reserve states: “the dramatic increase in bankruptcy can be attributed to the changes in the stigma associated with the issue of going bankrupt.” No matter what the case, there are many alternatives to personal bankruptcy. I would like discuss three possible solutions. First, we will look at changing your way of thinking about finances. Second, we will look at downsizing and last we will look at consolidating your debt.
The first alternative to bankruptcy is to change your attitude about financial matters. Taking a long hard look at your personal spending habits is critical. This is important because even if you file for bankruptcy and clear all of your debt with one stroke, there is NO guarantee that you will be debt free forever without changing your thought process regarding your finances. Finding a balance in your everyday spending is the first step to a more financially responsible lifestyle.
Next, if you own a home and do not have a family, one alternative could be advertising for a roommate. If your lifestyle does not permit having a roommate, then downsizing to a smaller home is the best solution. Selling your home does not imply that you have bad financial judgment. It could possibly help you pay off your debt by having less overhead costs. Bankruptcy involves morality and your conscience. When you take on the responsibility of a mortgage, you are saying, in essence, that you are accepting the fina Read more
Going Bankrupt - An Epidemic of Financial Failure in America
Posted on November 4, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment
Americans are going bankrupt at an extraordinary rate. According to the American Bankruptcy Institute, Baby Boomers are filing bankruptcy more than any other group. The ABI gathered data from courts and public records to track bankruptcy filings. The study revealed the percentage of U.S. citizens over the age of 45 who filed for bankruptcy protection increased nearly 30-percent over the past eight years.
The percentage of people going bankrupt rose by nearly 70-percent in 2007. Experts predict an unprecedented record of nearly 1.5 million bankruptcy filings by the end of 2008. Predictions for 2009 are even gloomier, with an anticipated 4.5 million Americans filing for bankruptcy protection.
Economists relate the sharp increase in bankruptcy filings to the mortgage crisis. A large percentage of homeowners with subprime and adjustable-rate mortgages can no longer meet their mortgage obligations.
The decline in home values and instability within the credit industry has all but eliminated the potential for homeowners to use the equity in their home to consolidate debts. Homeowners unable to afford their mortgage payments or obtain home equity loans are being forced into bankruptcy in an effort to save their home from foreclosure.
Additionally, the failure of Fannie Mae and Freddie Mac set off a landslide of consumer panic. Numerous businesses are closing their doors, unemployment rates are skyrocketing, consumer spending has reached an all-time low and bankruptcy filings are going through the roof.
Homeowners who can no longer afford monthly mortgage payments and unable to refinance or obtain a second mortgage are forced into going bankrupt. Part of the problem stems from new bankruptcy laws enacted in 2005, which made filing for bankruptcy protection considerably more difficult and costly.
The Bankruptcy Abuse Prevent Read more
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