What is a Personal Bankruptcy?

A personal bankruptcy is a form that when filed will discharge obligations to creditors. Bankruptcy forms can be located online or an attorney can prepare one for you. Contrary to popular belief, personal bankruptcy does not discharge all debts. Specific types of student loans, called secured student loans, must be paid even after some one has filed bankruptcy. Also, it won't discharge taxes owed to the state or federal government. Likewise, child support payments and money owed to victims of drunk driving accidents will still be required to be paid. Chapter 7 and Chapter 13 bankruptcy filing are still subject to the above criteria. Personal Bankruptcy does however discharge 'unscheduled debts'. Unscheduled debts are things like money owed to creditors, which include credit card companies, auto loan lenders, and money owed to personal contacts that lent you money. These creditors and others who are owed must line up to try and get any property not exempt under their state's exemption laws. Those who are deemed most worthy get their pick of the debtor's bankruptcy estate first, and on it goes until nothings left but assets that are exempt from being taken under that state's laws. Usually states do a good job of keeping these creditors from taking everything because generally most creditors may not even receive a single penny. Since the stakes are so high for these creditors, they often try to band together to fight over who gets first pick of the bankruptcy estate, just so they can recover a fraction of what?s owed to them. It's a rather fruitless fight creditors have to go through but most people say they deserve it for lending an amount the debtor has no ability to repay. Often times businesswomen or businessmen file for personal bankruptcy for themselves and their company. It?s perfectly ok to file for a chapter 7 bankruptcy while your simultaneously filing for a chapter 11 bankruptcy for your business. These cases tend to be more complicated though, which can cause 'legal sparks' to fly when exemption laws collide. Filing for personal bankruptcy is usually a very relieving experience for most people. They feel like the weight on their shoulders has lifted, it's like the greatest gift you could give them. Most people avoid credit as much as possible for a few years until their credit report is clean again so they don't have to deal with the 'ballooned interest rates'. Theirs others who talk of repairing your credit score right after bankruptcy to lower those interest rates. I think that kind of talk just gets people in trouble again, because everyone knows the best way to get your credit score up is to get credit cards and loans that will just put you back into debt. Disclaimer: This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as legal advice or used to make legal decisions. Consult an attorney in your area if you?re seeking legal advice. This article has been brought to you by Legal Forms Bank .Biz - legal forms databank. Download do-it-yourself personal bankruptcy forms and other forms like power of attorney forms online. Financial directory

Balance Transfer Precautions

Credit card debt has become a common problem among consumers. Paying off your debt with high interest rates can be a great problem. Luckily there are balance transfer deals that let you transfer a high rate balance into another one with lower rates. Consequently you can save a lot on interest and pay off your debt as soon as possible. Here are some tips for you to make the savings larger. Most balance transfer plastics offer zero interest rates. Still you should take into consideration that it is just a promotional period that is usually provided by credit card companies and lasts up to 12 months. Then the APR will be higher. So if you transfer your balance into a 0% APR plastic, try hard to pay off the balance during the intro period. If you feel that you are not able to pay off your debt before the end of the intro period, then look for the offer with moderate ongoing APR. For example you can give preference to a balance transfer offer that comes with 0% intro APR and 7.5% ongoing rate. So, it can be a rather profitable card. You should always make all payments on time and don't exceed your credit limit. If you don't follow the rules, your zero APR card will be canceled and you will need to pay default fees. Today practically all credit card companies charge a balance transfer fee. So before applying for a credit card pay attention to the terms and conditions. It can be a fixed fee as $30 or a percentage depending on the amount of money you transfer. So it depends on the situation which one is the most beneficial for you. Zero percent on balance transfers doesn't mean 0% on purchases. In spite of the fact that the card can come with zero interest rate on both purchases and balance transfers, these are rather the exceptions than the rule. So pay special attention to APR on purchases. If it's too high, apply for a cash back card that lets you save on purchases and be rewarded. If you carry debt, it doesn't mean that your credit card shouldn't be profitable. So don't be in a hurry and be careful in the choice of a credit card. Balance transfer credit cards have different features so compare all the options of the plastics. There is a great variety of rewards plastics: airline card deals, those with gas and hotel rewards. So choose the one that suits you most and take advantage of it. About the Author. If you want to get the best credit card and take advantage of it, you should know the details of the whole process of applying for a plastic. Valerie C. Cottrell devotes her articles to the process and the possible problems you may face. Financial directory

Why Small Business Should Use Credit Cards?

Nowadays one of the most dynamic forces of the economy is small business owners. Only they have many ideas and are able to turn them into material results. When it comes to success and finances, entrepreneurs prefer to use business credit cards. And such cards really work in a proper use. Being a business owner, you need to be responsible for everything that concerns your company and be aware of many troubles that may take place. So, if you wonder how you can manage and solve your problems with help of credit cards, continue reading. Very often those who open a new business mix their business expenses with the personal ones. It is a mistake. As a rule, such mistakes provoke a disorder with taxes. If you don't wait for appearance of problems, make your personal expenses and the business ones separated. Business credit cards are issued to help entrepreneurs manage their companies easily and more effectively. A small plastic can be a good financial tool that gives its holders more freedom and confidence. If your business is at the first phase and you plan its growth as soon as possible, you have this chance with credit cards that were designed specially for those active and business people like you. Business credit cards allow you to build a strong business credit history. And you will be able to apply for higher credit lines and loans because your business will grow. So, if you are ready to apply for a business credit card and start the search, you should know that many credit companies offer credit cards with attractive perks. Say, those who go frequently on business trips can choose among credit cards that come with hotel rewards and bonus airmiles. It is a great opportunity to save on a hotel stay, airline ticket, and get other tempting perks. Moreover, you can spend with your plastic buying anything for your company or dinning out and get cash back. You may not take into account these credit cards seriously but they may give you a sensible advice in times of needs and help to simplify your business control. Major banks and credit companies provide specific services that will be inessential for ordinary customers but play the game of business people. Therefore it is possible for you to find solutions to problems that seem to be unsolvable. Furthermore, if you carry a business card, you may run your company without a bookkeeper. The issuer of your card will provide you with monthly, quarterly and year-end report for free. One more advantage of such specific credit cards is that most of them come with beneficial options and features. You can find low interest credit cards, no annual fee, 0% APR on balance transfer for up to 12-15 months and, of course, amazing rewards. So, you need to choose the card with the most beneficial deals to cut your business expenses. The only clause is that you need to have a good credit history to be eligible for the cards with all these alluring features. Martha Krahenbuhl is a specialist in the sphere of credit card offers and financial matters. She shares her skills in the articles concerning budget stability, last credit industry trends, credit cards with cash back, rewards and so on. Financial directory

Credit Cards and Marriage: Together or Apart?

A woman, let us name her Kate, has just gone through divorce and the law suit related to it, after which her credit score was - affected negatively. To her dismay, her attempts to obtain even a small credit limit failed. So, now she can?t hope to be - approved for a car loan or mortgage. In cases like Kate?s, people suffer twice more after divorce, since they find the personal finance crippled. Very often the - person cannot understand why his/her credit history is damaged, and they wonder how they can restore their eligibility and score. It is a long story how people, living as a family, can come to credit card debt and low credit rating. That is why every newlywed as well as those who are only thinking about living together should know some guidelines for wise family finance. Divorce is the last thing thought by a couple that is on the point of getting married. However, divorces are not too rare and one should be ready to pay all his obligations in case of break-up. Certainly, one should take care about his credit profile before and after the marriage, in order to avoid a range of troubles with money and credit in case of divorce. Life together requires responsibility and the couple should decide whether they will have joint credit card accounts or separate ones. This factor is going to put an impact on your credit eligibility in future and will determine your responsibility in case of divorce and need to pay out old debts. Having a joint instant approval credit cards with your spouse means you are both equally responsible for reducing the balance. The advantage of applying together is that you can be approved for a higher credit limit and better terms. Knowing this, the husband and wife should not commit mistakes and try to build flawless credit history: the better their credit profiles are, the more benefits their family will obtain from credit card companies, like generous cash back, low interest rate. The information about payments for the joint credit card account is reflected in credit reports of both spouses, so it can help one of them improve his or her credit is it is not quite good. Some consumers prefer keeping their credit card accounts separate after marriage, so that there will be no arguing about who pays the bills and who spends more. Besides, they avoid joint account because they do not want to mess up with the bad credit of their partner. After breakup, spouses with separate account will not have to dispose of problems with apying out debts and separating accounts. Having joint or separated accounts depends totally on your decision, so they only necessary thing is staying responsible in any case. Financial directory

Becoming Your Own Banker: Infinite Banking Concept

Infinite Banking is a process that allows you to recapture the purchase price of any purchase you make and pay yourself the interest that normally would be paid to another financial institution. Many Americans are searching for safe ways to create wealth. At the same time these individuals search for products and investments with higher rates of return, they need money for things like cars, homes, medical/dental, vacations and so forth. The process of becoming your own banker is a way to utilize your capital as a bank would, but this time you are not only the banker, but the borrower. By controlling your capital, loaning it out, paying it back diligently and honestly wealth is created almost by accident. You need to understand that even using your own money and paying cash for an item has a cost to it. You either give up the interest that you could have earned by paying cash, often referred to as opportunity cost, or you pay someone else interest to use their money, there is no other way. By becoming your own banker you pay yourself the interest, recapture the purchase price of the item, and keep complete control over your assets. Incidentally, use these banking concepts in a business structure and you gain additional tax benefits that make the concept even better. Financial directory

Payday Loans 101

A payday loan provides immediate funds for those with unexpected financial need. The purpose of this type of loan is the immediate access to cash but should be paid back on your next payday. There are higher costs associated with borrowing a payday loan so it is recommended to only borrow what you need and what you can afford to pay back. A few things to consider before taking out a payday loan are the following: * Before taking a payday loan, consider other, cheaper options, such as overdraft protection on a bank account, an advance on a credit card or a personal line of credit with a financial institution. * There are a lot of costs involved in payday loans, including high interest rates. Some of these costs can be hard to understand. Ask what additional costs may be charged if you don't pay the loan off on time. The new Ontario Act requires that all charges you're required to pay are included in the total cost of borrowing. * Don't borrow more than you need. If you must borrow, only borrow an amount you're 100 per cent sure you can repay on the due date. Don't agree to have your employer sign over all of your wages to the payday lender if you're unable to repay what you owe. In many provinces, this is illegal. * Get a copy of the loan agreement and take it home, read and understand it before signing. Don't feel pressured into signing before you read and understand the loan agreement. Under the new Ontario Act, you now have a cooling-off period during which you can change your mind. Don't use your personal property, such as a car, as a guarantee for a loan. Financial directory

How to Repair Credit Rating with Credit Cards

Consumers with bad credit history often find it difficult to repair their credit. But still there is a way out. Credit cards can help you. Of course, you can't count on the credit card offers you got before. You will have to pay higher interest charges and your credit will likely be limited. But everyone knows that credit cards are necessary in our life. And nowadays credit card companies and bank are ready to give you one more chance. Take this chance and prove that you are a valuable client. Follow these tips and you are sure to improve your credit. - To start with, continue paying off your home or car loan. - Apply for an unsecured credit card. There are many banks and credit card companies that specialize in credit card offers for bad credit, so you can easily find a suitable offer for you. Apply to immediate credit card care service if you need in credit help. Having gotten a new credit card, you should do your best to prove your creditor that you are responsible customer and can manage your debt. - Use the card only to make small purchases and make all the payments on time. - Many of the banks can give you a small loan if you get a certain amount of balance in your account that will be charged in case you fail to pay off. - Try to make more than a minimum payment, thus you will save on interest charges and pay off your debt quicker. If you can't obtain an unsecured credit card, apply for a secured card. Some banks provide customers with secured credit cards, and you will easily get one, if you make a secured deposit. - No matter, whether you have a secured credit card or unsecured one, make sure that your creditor reports all your credit achievements to credit bureaus. Otherwise, all your pains to improve your credit history will be in vain. - If you notice that your creditor doesn't report your payment activity to credit reports, do it yourself. You can supply your information to one of the major credit bureaus. Include your creditor's phone number and your account, so the information could be verified. - Don't rush to apply for new credit cards. New credit records are important, but you needn't obtain lots of credit cards. Consider your needs and financial aims. Using too many credit cards can make it difficult for you to keep track of your spendings. Loss of control will lead only to deeper debts. - Don't believe credit repair agencies that promise you to rebuild your credit in a short period of time. Mind, no one can erase bankruptcy or financial mistakes from your credit report. Credit repair is a long process that demands discipline about payments and good management of your credit cards. Mind, creditors give you the second chance. Don't miss it! Use your credit card wisely and prove your creditors that you are a responsible cardholder. Then you have all chances to improve your credit history and get good credit cards in the future. Jennie J. Mix writes articles on credit card applications. She especially interested in ways to check credit score online. Financial directory

How Debt Consolidation Solved Your Problem

Simply put Debt consolidation is the easier and sure the first way to understand your debt difficulty. With debt consolidation you are no yearner making mercantilism to the galore creditors you owe separately. You gift be stipendiary only one bingle monthly commerce that instrument firing all your debts. This lonesome defrayment is prefabricated to the loaner. The advantages of debt consolidation are many and they include, lower payments, credit score improvement, no calls from the creditors. You can also use debt consolidation for not only personal debt, but also business debt and even credit card debts. You can get debt consolidation in two main ways by putting up some form of collateral, which is secured debt consolidation, and by not putting up collateral, which is unsecured Debt consolidation. Normally you would apply for a debt consolidation loan through your financial institution, but nowadays you can do so through online mode. Online mode makes it much easier to apply for a loan. Depending upon what you can do you should try to negotiate a good deal for yourself. The lenders will go to your creditors in order to get them to reduce your monthly payments. So please discuss you situation with an expert, preferably a credit expert. The credit expert will look at your present situation and suggest to you certain measure they think is necessary for you to employ and that fits the problem and your financial situation. You are advised to consider their proposals carefully and if you agree with them go ahead and proceed. Although debt consolidation is great solution to your current situation it is only as good as the person using it. So you have to be responsible enough to do certain things, namely, looking at how you spend your money and find ways you can cut your spending, and either totally do without credit cards or limit their use. Do not take on any more debt until the ones you have are paid off, because that will only compound your problem. Debt consolidation can potentially solve all of your debt problem with a simple and hassle free process, but you must make those payments on time every month. Financial directory