What You Must Know If Filing For Chapter 13 Bankruptcy
January 5th, 2009 Subscribe To Our Feed
There is a lot of info to discover if you are researching chapter 13 bankruptcy, and particularly if you possess a business or even if you are just planning to start up a business in the future, to benefit ones self.
Chapter 7 bankruptcy information would also apply here, but the chapter 13 bankruptcy information is going to be particularly important for you to be well informed about.
Things You Will Want To Know
When talking about chapter 13 bankruptcy filing procedure information, this refers to the rule that allows a borrower with a limited amount of debt and a stable income to pay off their bills under a court approved repayment schedule over a 30 to 60 month period. So from this chapter 13 bankruptcy information we can determine that only if you have a small amount of debt will you be able to go through under the chapter 13 bankruptcy law.
If you are in bad financial trouble on the other hand, then you should determine what your other options are because you might not be approved for this. The idea is that the person would be able to pay off all their debts under a 90 month time frame, and so if you are hundreds of thousands of dollars in debt visibly you are probably not going to be able to do that.
After looking at some of your financial records and depending on how willing you have been to pay your bills in the past the judge will make a decision. They will take all of this into consideration and use it to make a decision on whether or not they want to approve you for a repayment plan.
One more important piece of chapter 13 bankruptcy information involves what chapter 13 enables, and this is that it enables individuals with a regular income to develop a schedule to repay all or part of their debts. It offers a lot of advantages, particularly over liquidation under chapter 7. Perhaps most importantly of all, chapter 13 gives you the chance to keep your home from foreclosure. This is particularly significant if you have a family, as you have probably lived in your home for some time now and definitely want to shun foreclosure on your home.
Another major benefit of chapter 13 is that it lets you reorganize secured debts and draw them out over the life of the chapter 13 plan.
You should know that even though bankruptcy can certainly be accommodating in some cases. It is not just a one way ticket out of your monetary trouble. You may not have to deal with all the creditors and the debt as you did before, but you will have a colossal hit to your credit and you might have most if not all of your nonexempt possessions taken away, and this consists of any businesses that you may have and any credit cards that you may have. This record will also stay on your credit report for up to ten years.
Defaulted Student Loans
January 4th, 2009 Subscribe To Our Feed
The Consequences Of Defaulted Student Loans
When you finish college, or drop below a certain number of hours, the countdown starts toward the day when you must repay your loans. If you fail to make your payments when they are due, you end up with defaulted student loans. Defaulting on your student loans will have serious consequences on your future financial status if you do not deal with the situation immediately.
When You Don’t Pay, You Lose
If you have defaulted student loans, you financial future could be in serious jeopardy. By not repaying on time, you have shown your student loan lender that you are not credit worthy, and may have already been reported to one or more credit reporting agencies. If you have been reported to these agencies for defaulted student loans, you may not be able to purchase a home; buy a car; and in some cases, get a job or even rent an apartment.
It is important to have good credit these days, as virtually everyone checks your credit report these days. Defaulted student loans not only tell future landlords and employers that you may not be trustworthy, but can also end up with you having to go to court and incur heavy fines for loans which you will, eventually, have to pay back anyway.
Even if you are young, and your defaulted student loans are the only thing on your credit record, you may still find that a negative report from the owner of the loans will affect all areas of your life. Even more so if you have had more years to establish a credit rating that may have other negative marks on it.
Ways To Avoid Defaulted Student Loans
Obviously, the easiest way to avoid defaulting on your loans is to make your payments on time, every time. However, there are certain circumstances when this is absolutely not possible, and there are options available for most students so that they can avoid defaulted student loans.
Most states offer a repayment program for students that is substantially lower than that of any other type of loan, i.e. home loans, auto loans, personal loans. But the one program that many students do not know about, is the student loan deferral program. This program allows for an extension of your payment grace period in the even of financial hardships, or any situation that is out of your control.
If you think you may be in danger of defaulted student loans, it is important to contact your lender, or your state board of education, to find out what deferment options may be available. To avoid financial difficulties in the future be sure that you do not have any defaulted student loans, or they could haunt you for ever.
Your Alternatives When Looking For Bankruptcy Advice
January 4th, 2009 Subscribe To Our Feed
If you already have an extremely low credit score due to years of missed payments, collection accounts and charge-offs, then bankruptcy advice is probably looking mighty good right about now. Sure, your score will likely hover somewhere around 300, out of the possible 850, and you’ll have to wait 10 years for anyone to want to give you a loan again, but it’s better than lying in bed each morning, too depressed to face the daily barrage of creditor calls and hate-mail. Bankruptcy can buy peace of mind for some debtors, but it’s not for everyone.
Bankruptcy advice has gotten more liberal over the years due to changing laws. To avoid scores of debtors flooding onto the streets with no property and nothing left to live for, the laws have changed to allow debtors to keep certain property, despite filing for bankruptcy. The debtor may keep up to $2,500 in cash, $2,400 in auto equity and unlimited 401k funds. Additionally, by law, employers cannot fire an employee who files for bankruptcy, although potential employers can choose not to hire a new employee based on that factor. Often with a filing, debtors will need to attend credit restoration and debt management courses.
When you’re seeking advice about bankruptcy, be sure to double-check what can and can’t be discharged. For instance, you’ll still have to pay off Uncle Sam if you owe taxes for the past three years. However, if you have personal income taxes over 3 years old, then you can discharge them through bankruptcy. Fiduciary taxes cannot be discharged, nor can most student loans and liens. If you owe child support or alimony, you will still have to pay up. If you don’t list debts on your bankruptcy petition, then they will not be covered. If you have debts from drunk driving or other “willful and malicious” harm, you’ll still have to pay your dues. However, there are many things that can be removed when you file for bankruptcy, such as all unsecured credit card debt, wage garnishments, utility termination, fraudulent credit claims and foreclosure.
After you receive bankruptcy advice, there are a few things to consider before you file. First, be sure you can’t negotiate with your creditors, reduce your balances with a settlement letter or arrange a monthly payment plan. Generally speaking, if you can only afford minimum monthly payments on your bills and cannot pay off all your balances in five years, then you should file for bankruptcy and then focus on credit restoration services.
Credit Card Counseling
January 4th, 2009 Subscribe To Our Feed
There is an appropriate and beneficial time to use a credit card. Sometimes we have an emergency or need to make a purchase right away and simply do not have the cash available. That is the time to use a credit card. At times when we receive the statement we are still not quite ready or able to pay for the purchase. This is even worse for people who find it very difficult to control their credit card spending. For them, they truly dread receiving that statement at the end of the month.
Get Help
If you have a credit card that has a growing balance due to the high interest charges don’t feel that all is lost. There is something you can do. You can call the credit card company’s customer service department and try to negotiate a lower rate. They will be able to inform you quickly if you qualify for such a reduction. If you are able to reduce your interest you can begin to chip away at the balance because you will not be spending so much money each month on the compounding interest.
Utilize the Internet
Other help is available and can be found on line, such as non profit credit counseling. There are thousands of financial experts out there who can help you with your credit card debt and they can easily be located on line. Sometimes it can be arranged for you to have a live chat with credit counselors that can help you get back on track and better manage your finances. There are also web sites that sell reading material with instructions on how to get out from under debt.
Counselors That Can Help
Non Profit Credit counseling is also available on the internet or face to face. Credit counselors can evaluate your situation and explain to you where you have gotten off track. Also some are willing to negotiate with your creditors in your behalf to reduce your interest and give you a more manageable payment. Seeking help from credit counselors will help you drastically improve your credit scores.
Credit Counseling for Free
You will find that most credit card counselors offer their services free of charge. Simply pull all your debts together and prepare the information for them to review. They will give you options and help you choose the plan that will help you in time to get back on your feet financially.
Use an Advanta Credit Card for Your Business Needs
January 3rd, 2009 Subscribe To Our Feed
Credit cards are the part of everyday life, especially when you own your own business. On a frequent basis there comes a time in each day when a credit card comes in handy. This occasion might be something simple like ordering lunch for your employees, or going to the local office supply store to get pencils, but you have the requirement to place a charge on your company credit card.
You definitely do not want to use your own personal card for the needs of your business, because doing so would will really make your accountant and the IRS very angry. Therefore, you should ensure you have at least one dedicated business credit card. Fortunately there are some great financial institutions that issue business credit card cash back.
A great source of business credit cards is Advanta. Their specialty is in credit cards for use with your business. Since they only specialize in small business credit cards, they are very good at what they do.
If you choose the Advanta card for your small business, you have the backing of a company that offers a top-quality product with excellent benefits that are designed only for a small business. As one of the biggest issuers of credit cards for the entrepreneur, Advanta has over 50 years experience working with business owners.
It is very important that you are comfortable with the financial institution that provides the credit card that is used by you, the entrepreneur. Advanta is one of the few businesses that gives you the feeling of security when it comes to your business finances.
As a small business owner, you need to make sure that you use a credit card that does as much for your company as can be possible. Advanta is a great choice when it comes to small business credit cards. Go ahead and see if they are the right credit card for your company.
Business CitiBank Credit Cards
January 2nd, 2009 Subscribe To Our Feed
If you are an entrepreneur, you are going to require the use of a small business credit card. It is not a very good choice to use your personal credit cards for business expenses, since you are required to separate your business expenses from your personal expenses.
There are several to choose from, but one of the leading issuers of small business credit cards is CitiBank with their CitiBusiness card. When you use a CitiBusiness credit card, you have a credit card that is tailored to the business owner.
With the ability to get additional cards for employees, and determine the amount of credit for each card, CitiBusiness puts you in complete control of your finances. They provide online account management that gives you the ability to view card charges, view statements, add additional cards for employees, and otherwise manage your CitiBusiness account.
If you have a need for business credit card cash back, CitiBank should have just what you need for your business. Often times they run deals for low introductory rates of interest for purchases or balance transfers for a given length of time. With these deals, you can really get in control of your finances without having to pay interest.
CitiBusiness does offer business credit cards that come with rewards program. With such a program, you earn a set number of points for every $1 you put on the credit card. The choice of how to redeem points is up to you. You have many options so that you can have several ways to redeem points.
Just about every business could use a credit card, so it is in your best interest to make use of a credit card that is exclusive to businesses. The CitiBusiness credit cards make an excellent choice as far as business credit cards are concerned. They have some incredible benefits for the small business owner, so you really ought to look into their cards for your business.
