Smart Bankruptcy Guide

Just Say NO To Filing Bankruptcy

Many people are facing the possibility of filing for bankruptcy. Sadly, many people who are in this position have been given bad or poorly explained credit advice and are wondering if there are any other alternatives to going down the bankruptcy road. There are options available to keep your good name and pay your debts.

Should I avoid Bankruptcy?

To begin with, filing for bankruptcy is a personal decision and one that can only be made by the individual in debt. Although only the individual can make this decision, there are people or companies out there that will discuss options and help debtors come to an educated decision whether to file for bankruptcy or to avoid it. A non-profit organization is the best avenue. Beware of companies charging outrageous fees for their services, as often they are only interested in making money from those in dire financial straits.

Often creditors harass those who are facing financial ruin to make their payments, this is because that is the only weapon they have. These threats can further add to a debtor’s confusion and stress. There are some simple things to keep in mind about debtors and who you should be paying first and who can wait. Make a priority list of the debts you should be concentrating on. Depending on your situation, if you want to keep your home and main vehicle, than you should concentrate on these two debts over your credit card or medical bills.

There is a good reason for choosing to pay other bills over medical and credit card debts. In order to take property from a debtor in the form of assets or possessions, these creditors must first take a debtor to court before they can take their property or possessions. Debts such as fines, alimony, child support, income taxes and student loans on the other hand don’t need to go through this process. By filing for bankruptcy it is likely these debts will still remain.

Trying to get creditors to give you a break should not be the deciding factor in choosing to go down the bankruptcy road. Even though this approach may bring temporary relief from lawsuits and arguments with creditors, bankruptcy is only a short term solution. Once bankruptcy has been filed the person will be no better off than they were before. In hindsight, by avoiding bankruptcy, a person can sort out their affairs and come out a little better off than if they had chosen to file for bankruptcy.

Debt Management, How can I avoid Bankruptcy?

One of the first methods that should be used when trying to manage debt is to contact the people that you owe money to, for instance, financial institutions and credit card departments. Explain your current situation to them and see if an arrangement can be made to reduce your payments or waive late fees until you have caught up on payments.

If this fails, don’t be afraid to use the power of a good threat. Write letters to all of the creditors that money is owed to and tell them that you are likely to have to file for bankruptcy. Often the companies will try to work something out with their debtors or take less money than go to the trouble of taking debtors to court or having the debt completely wiped out during bankruptcy.

Is A Consumer Credit Counseling Service The Answer For You?

Another way to avoid bankruptcy and work on better debt management is to find a good Consumer Credit Counseling Service. This service will usually be a non-profit organization that will work with you and your creditors to find a solution or a better payment plan that will suit your finances.

Keep in mind the CCC is good for quieting your creditors, removing late fees, and lowering interest payments. If you have an old debt that hasn’t been collected on for a while, you might want to contact an aggressive debt consolidation company. They maybe able to negotiate as much as 60% off your original debt.

By consolidating your debts into one loan you can reduce the number of creditors and fees that you will be responsible for. Be aware of the consolidation loan policies on transferring money from other sources to the loan, as this can sometimes be costly. Often it is possible to borrow against your home to pay debts in this manner, although this can be risky at times as you may face loosing your home if you can’t make the payments.

The other option that you may be able to exercise is to sell off your assets that have value and pay that amount off on your debts. This may seem like a difficult option, although, if you are filing for bankruptcy, it is likely you could loose all of your assets anyway.

Bankruptcy is a process that is best avoided. If a debtor does decide to file for bankruptcy, it should be because they are left with no other option. The debtor should also be aware of the debts that cannot be wiped out by the bankruptcy process, even then a debtor seeks the help of a Credit Counseling Service before proceeding.

Liz Roberts
http://www.articlesbase.com/non-fiction-articles/just-say-no-to-filing-bankruptcy-89751.html

Hedge Funds and M & A’s

The merger mania is continuing, with many firms in the United States and Europe being bought up by hedge funds. An enormous amount of capital has flocked to hedge funds in order to exploit the low or non-existent tax rates in offshore financial centers such as the Cayman Islands and the Bahamas. The US and other major stock markets are not going up at a level to satisfy the financial lust of the ultra-rich, so the idea is to move into hedge funds since they are what are called “market neutral”. It is a manifestation of the hyperinflation tendencies that all this money is around to run M & As. Lear Corporation announced on Dec 1st its deal to sell its interiors business to Wilbur L. Ross’s International Automotive Group North America. The Bank of New York is buying the Mellon Financial for $16.5 billion, to create the world’s largest security servicing firm

The value of the dollar has dropped by 11-percent so far this year, and of that 3.6-percent in November. It plunged to a 14-year low against the pound sterling pushing the dollar/British pound rate close to the $2 level, where it hasn’t been since 1992.

The hedge funds are demanding less regulation. There are some proposals to get rid of the Sarbanes-Oxley regulations, which are supposed to safeguard against any mega-collapse like Enron occurring. The prime funders of the Committee are none other than financial hedge fund players Wilbur L. Ross, the Starr Foundation, and Kenneth Griffin of the Citadel Investment Group. This proposal has the backing of U.S. Treasury Secretary Henry Paulson, but is seen as ridiculous by state prosecutors in general, including former N.Y.Attorney General and now N.Y. Governor-elect Elliot Spitzer.

Many hedge funds strategies attempt to hedge against losses in the markets they trade by selling other stocks in a similar category short. The more prevalent moneymaking strategy lately is to buy up manufacturing companies such as in the auto industry, when they are bankrupt. Then hedge fund management adopts strategies for quickly cashing in on the companies, or moving them overseas, along with their machine tools to Third World, low wage countries. Another strategy is to buy up various sorts of companies, whether or not they are bankrupt, and issue dividends to stockholders, while piling companies with large amounts of debt. Since the dollar is going lower, the tendency is to grab companies through mergers and acquisitions, as something tangible to either hang on to or play with.

Adamheist
http://www.articlesbase.com/finance-articles/hedge-funds-and-m-as-93149.html

What You Should Know About Credit Cards

This interesting article addresses some of the key issues regarding credit,credit card,zerocredit,how to get credit. A careful reading of this material could make a big difference in how you think about credit,credit card,zerocredit,how to get credit.

Practically everyone in the United States has credit cards. From teenagers to retirees, almost everyone has at least one credit card. Everywhere we go we see ads – in the television, radio, newspapers, billboard advertisements – on credit cards. Some credit cards are even mailed directly to our homes. But what are credit cards, why should you have one and what are some of the risks involved?

Simply stated, a credit card is a financial arrangement between you, the consumer or the card holder, and an institution such as a bank. The arrangement specifies that you borrow money from the lending institution with the promise that you will pay them back in the future. The institution agrees that it will provide the money you need and in-turn you are expected to return payment over a certain period of time. Your payment will include not just the amount of money you borrowed, but also an additional charge based on a pre-defined rate of interest.

Credit can provide various services, making it an indispensable tool for today’s consumers. These include:

Convenience. You saw this wonderful dress in a shop. Perfect for tonight’s party, you thought. But you don’t have money right now. Thanks to your card, you can buy anything you want right now. Credit cards give you that wonderful allowance not to bring that much cash and to order goods from catalogs. In addition, many of the online-based shops and stores, such as Amazon.com, mainly accept payment using credit.

Emergency Protection. For emergency situation, credit cards can be an extremely helpful tool that could be your friend that could pay for your emergency needs, like when your car conked out in the road, or your mother gets hospitalized, or any emergency situations that you need money but can’t get it from the usual means.

Putting you in the right budget. Want to keep a detailed record of your expenditures? Credit cards can do that.

Security. In today’s world, carrying large cash has become a problem. If your cash gets lost, there’s no way you can retrieve it. Compared with credit cards, money cannot be returned back when it got lost or stolen. If your card, for example, got broken or it got lost or someone stole it from you, you can always ask for a credit card termination or cancellation. You will have another card, a new one that will replace it in a few days.

Traveling. If you’re quite a traveler, whether across the town or country, or outside the US, it is relatively easier to travel with a credit card.

When used responsibly, credit cards can help improve our daily lives. With credit cards, life can be much easier. However, the joy of using credit cards can quickly change to a curse!

Are you starting to get notices from creditors to pay or “else”? Are you worried that you might lose your properties like your house because of credit debt? Chin up: Dealing with credit card debt is not as hard as you may think.

And, if there’s any consolation, you’re not the only one facing such situations. At some point, many people like you face financial crises with credit card debt.

Sometimes the most important aspects of a subject are not immediately obvious. Keep reading to get the complete picture.

Here are some simple tips to help you cope with your credit card debt:

Make a Budget.
If you want to have a grab of your financial situation before you lose everything, making a budget is what you should do first. Assess how much do you get from your income or other means and your expenditures. For example, if getting that posh apartment means you have to limit your meals to once a day, then it is not a great and sound budgeting decision. Your goal is ensure that you can answer for all the basic necessities: food, housing, clothes, health-related costs, among others.

Contact Your Creditors.
Remember: Running away from your creditors is not the answer. It is not a solution, and may in fact lead you to bigger problems. If you are having trouble paying off your debts, address this immediately with your creditors. State to them sincerely and fully the reason why it has become hard for you to pay these debts, and check if they could give you a revised payment arrangement that will put you at ease on your payment terms. Do not let creditors turn over your situation to someone or an agency to do the collecting for them, as this means that they have given up on you.

Address Debt Collectors.
There is a law that gives certain conditions for debt collectors as to when and how they should ask you to pay. The federal law, Fair Debt Collection Practices Act, clearly states that those collecting debts may not bug you, give false assertions, or do practices that are not fair when they are getting to collect money from you.

Get Credit Counseling.
You could also consider getting the aid of groups or institutions that will help you in your problems. If you managed to have an improved payment arrangement of your debt with a good credit counseling organization, creditors may approve of your proposition and accept your modified arrangement plan..

Bankruptcy.
Generally, personal bankruptcy is known as the last choice to fix your ballooning credit debt. A bankruptcy unfortunately stays on your financial information report for years. Getting additional credit, buying a house, sometimes even getting a job might be hard for you. Technically, however, it is a legal way of addressing your credit debt.

Enjoy the use of credit to make your life easier. . .BUT don’t let it become a nightmare! Learn to use your credit responsibly.

Hopefully the sections above have contributed to your understanding of credit,credit card,zerocredit,how to get credit. Share your new understanding about credit,credit card,zerocredit,how to get credit with others. They’ll thank you for it.

Michael Hehn
http://www.articlesbase.com/non-fiction-articles/what-you-should-know-about-credit-cards-86799.html

How to Get Loans Approved After Bankruptcy

After one has been forced to declare bankruptcy for whatever reason, it is a common belief that life in this world almost comes to an end in terms of finances or any future hope of getting credit again. But in reality, by faithfully following some simple steps and following the correct procedure, getting loans and new credit approved even after you have filed for bankruptcy can be done without too many more steps than anyone would have to go through.

It is particularly important to “get your ducks lined up” with the advice offered here, because it will put you in a much better position. Your goal should not simply be to get credit approved, but to get credit approved that is not at an exorbitant interest rate. The difference in just a couple of percentage points on a car loan can still mean hundreds of dollars, and on a mortgage loan, can mean tens of thousands of dollars that you don’t need to pay if you get your homework done first.

Your first step is to get a copy of your credit report. And be sure to get a copy of it from each of the “big three” credit bureaus, which are Equifax, Trans Union and Experian. The reason for this is because some creditors may report to all three of them, while others may only report to one or two of them. You can pretty much rest assured that if you are trying to get credit approved for any type of sizeable purchase, the credit grantor is going to check with more than one of the credit bureaus, and very likely all three of them.

The other reason for getting a copy of your credit reports is because, believe it or not, the majority of credit reports contain errors. These errors do not get fixed automatically, but it is up to the consumer to “notice” the error and insist that it be corrected. Having inaccurate information on your credit report can also cause you to have a lower overall credit score, and perhaps prevent you from getting the best loan deal possible.

Getting your credit report cleaned up as much as possible is going to take time, so if possible, be sure you allow time to get inaccurate information removed. The laws today state that credit bureaus have up to 30 days to either verify that they information they have on file is correct, or to remove it, and that 30 day clock does not start ticking until AFTER you have notified them of an error or inaccuracy.

For a sizeable purchase like a mortgage or a car, consider using a loan broker. Loan brokers deal with hundreds of different lending institutions, and they should be very familiar with which ones are strict and which are more lenient. Your goal is to have the broker understand your situation of having declared bankruptcy, and find the right lender who can accept that situation under the right circumstances and still not charge sky-high interest rates.

One of the most important things you can demonstrate is a good financial track record after your bankruptcy. That means paying all your bills on time with more than the minimum payment due, even your electric bill and your phone bill. A demonstrated track record of being “financially squeaky clean” in your post-bankruptcy days will go a long way towards a lender being willing to give you a second chance.

Jon Arnold
http://www.articlesbase.com/finance-articles/how-to-get-loans-approved-after-bankruptcy-88897.html

what happens to my c corp if i file personal bankruptcy? The company is successful, but cannot survive withou?

My shares hold no value because the company couldn’t survive without me.
We are filing due to a failing S corporation we are also involved in.

Not clear why a successful company couldn’t issue you sufficient dividends to overcome your insolvency, or offer to liquidate your shares in exchange for cash.

Just because you’re in personal bankruptcy should not have any effect upon a C corp in which you’re a shareholder; the two are completely separate legal entities: you and the company you invested in.

What happens in chapter 11 of the book We All Fall Down By Eric Walters?

I need information about what happens in chapter 11 for the book We all fall down. If you could give me chapter 12 and 13 and 14 and 15 or just a few of those chapters that would be great. Awarding 5 stars !!!

We all fall down.

Im filing chapter 7 bankruptcy what do i do about the payday loans i owe?

I’m stuck in a horrible cycle of paying one loan off and then going back the next day to get the money to pay the next one. I am going to file chapter 7 bankruptcy. It takes about 3-4 months to complete. What should I do with the loans that I owe now? Please help!! Thank you
I plan to include them in my bank, but what do I do with them while I am filing? Any idea’s?

Thanks again
Has anyone been thru this before?

Include them in your chapter 7 and have your lawyer send out the letters to the creditors…

Talk to your bankruptcy lawyer… he will explain the whole process and yes, definitely include those pay day loans into your bankruptcy.
They are "unsecured" loans and can be discharged just like credit card debt.

I want to refinance my two year fixed mortgage. I’m in a Chapter 13 bankruptcy. Any good companies for this?

I have been with the same mortgage company for almost four years. I started with an adjustable mortgage. After two years the rates and payments shot up. I modified with them to a two year fixed. This expires in August. Last November, I filed a chapter 13 bankruptcy, which includes the mortgage. My attorney says to either work on another modification with the company I have, or to seek out a refinance somewhere else. Has anyone out there been in similar situations? What did you do? Any recommendations on a good company to go with?

I would love to help you! However…your approval will boil down to what your home is worth & the size of loan amt. you need to pay off your mortgage & your BK. So if those all check out to be 85% loan to value & you have a fico of 580 & higher…your loan is a slam dunk!

What happens to common stock now that CIT has filed for chapter 11 bankruptcy protection?

They are not going out of business. They filed for protection from their creditors, basically asking the court to allow them to stop paying their bills, while they reorganize and look for additional financing.

The stock will continue to trade on the exchange exactly as it always did. The stock may become worthless or may simply drop further in price depending on what they negotiate with the court and their creditors. They have assets to sell and depending on how much they can sell them for they might be able to remain in business but the company will be worth less and the stock will reflect that. They may also issue more stock giving their creditors a larger ownership share of the company which leaves less for the common stockholders and the stock will reflect that.

Company in Chapter 11, what are my obligations to the non compete agreement?

I quit my job when my company filed for chapter 11 bankruptcy. I have a "non compete" agreement in my contract but in light of the recent change what is my obligation? I am bound to this agreement for 5 years, that seems like longer than the norm. Can I contest this or am I stuck with what I signed for?

If they go chapter 7, I would think you are off the hook, because who would complain. chapter 11 is reorganization and the company will still continue to operate, and you are bound by the non compete..