http://bankruptcy-info.we.bs/
http://www.loan-house.info/2009/09/choosing-right-bankruptcy-attorney.html

I’ve had bad credit for sometime not because I’m a deadbeat but because of low paying jobs and losing jobs because of illness and poor health. Is it worse to have bad credit when trying to rent a place or bankruptcy. I am tired of being hounded by this one collection agency. I am on a pension now and I know they can’t touch my social security but tired of being hounded. Is it true after 7 years everything is written off on your credit report? I want to move to another state because I am tired of where I am living. I usually just pay cash for everything else and always paid cash for any vehicles I’ve owned too.

First of all bankruptcy only shows on your credit for 10-years and the older the BK is the less affect it has on your score. And you can reestablish your credit in as little as 24-months after your discharge if you know how.

Second the 7-years you asking about refers to the reporting time line established by the Fair Credit Reporting Act (Federal law) which says that derogatory accounts show for 7-years from the date of first delinquency and nothing but nothing resets this time line.

But, even after this time line does expire there is another called the statute of limitations which is the time that your creditors have to take you to court, sue and win. This time line varies by State and type of debt and can be rest by making a payment or by admitting the debt is yours.

Even after the S.O.L. expires lenders can still try to collect.

If all your worried about is the one collection company simply send them a cease and desist letter letter which you can find all over the web and they will be forced to only contact you by mail.

Bankruptcy should be looked at as a last resort, it’s messy and takes a lot of hard work to recover from.

Good luck.

http://bankruptcy-info.we.bs/
http://www.loan-house.info/2009/09/choosing-right-bankruptcy-attorney.html

When you’re caught in the middle of a credit disaster, it may feel like you are all alone. But statistics in the United States show that the number of annual personal bankruptcy filings is growing all the time. Many Americans struggle with personal debt and many in San Antonio are considering bankruptcy. Government data shows that the average bankruptcy filer is between the ages of 25 and 54. More than half of people filing bankruptcy have an annual income of under $30,000 per year. Consulting with a San Antonio bankruptcy attorney can provide logical legal protection for your needs.

Rising medical bills are one of the most common reasons for bankruptcy. Medical expenses in the United States have been climbing at an alarming rate over the past fifty years. More than nine million American families spend as much as 20% of their income on medical expenses. Many middle-class Americans think they are safe from these staggering costs because they have medical insurance. But when serious medical problems happen, medical insurance doesn’t cover all the costs and the bills begin to mount. At a time when you are concerned about your own health or the health of a loved one, being hounded about medical bills is an unwanted stress. A San Antonio bankruptcy attorney can help you to erase that mountain of medical bills.

Many very rich and famous people have filed for bankruptcy. Anyone can have problems with their finances and that includes celebrities, athletes, business leaders and other high profile public figures. The nightly news is full of famous people who have financial problems. Just like ordinary folks thinking about bankruptcy in San Antonio, celebrities experience divorces, medical problems, and lawsuits. The current financial crisis isn’t selective and can have an impact on any of us at any time in our lives. Some celebrities find that bankruptcy is a great way to turn around their money woes and get a fresh start. Stars that you see on TV like Michael Jackson, CNN’s Larry King and musician Marion “Suge” Knight have all filed for bankruptcy.

It is more important than ever to speak with a San Antonio bankruptcy attorney. New law changes will be explained to you and your rights and options will be reviewed. Thousands of San Antonio residents considering bankruptcy have changed their lives and eliminated their debts. An attorney can help you understand your options, make good choices and get you moving in the right direction to keep your debt problems from ruining your life. Although dealing with bankruptcy is new to you, an experienced attorney will understand your situation and help you protect the security of your family. Make an appointment to consult with a San Antonio bankruptcy attorney and stop the worry and fear that credit problems have created in your life.

Luna Mohanty
http://www.articlesbase.com/bankruptcy-articles/bankruptcy-in-san-antonio-why-me-735253.html

 

When one wants to make tons of money, he should be surrounded by thousands of fools, says an old adage on the stock market. It reiterated itself when Warren Buffet announced investment of $ 5 billions in Goldman Sachs (GS) and $ 3 billions in General Electric (GE) fetching him 10% interest per annum in addition to free warrants convertible into shares for next 5 years at currently depressed prices. 

It was considered by many as signs of confidence from one of the most revered and legendary investors of all time, Mr. Warren Buffet. No one bothered to ask the investee companies, why was he given the yield of 10% that was normally associated with the junk grade bonds or companies.  Have this bluest of blue chip companies degenerated into junk status? Are they next on line of “Olympic 2008 Parade of Bankrupt financiers?”

No one even noticed the rapid transformation of the legendary investor into usurious Money Lender at his advanced age of 78. No one even noticed that there was no real liquidity crisis, but the lenders like Mr. Buffet have lined up on the side line to seek the Risk Related Return (RRR) from the potential borrowers. “Greater the Risk, Higher you Pay” was the simple message displayed on the foreheads of every possible lender.

Otherwise, when the FED was willing to lend at meager 1.5%, why should the GS and GE pay up 10% to Mr. Buffet?   Within hours of receiving $ 3 billions from Mr. Buffet, GE rushed to the commercial paper market to raise further money for the payment of wages and salaries, and was glad to see the FED chief Mr. Bernanke dressed up in Santa Clause, disbursing billions more at just 2% (cut to 1.5% on following day). In short, $ 3 billions of Mr. Warren Buffet appear to have “gone with the wind “within hours.

 

What Mr. Warren Buffer announced was misunderstood and misinterpreted by almost everyone on Wall Street, Main Street, Capitol Hill, Fed, and entire community of journalists, analysts, commentators and interviewers. He meant, but did not say it, that the real market rates were extremely high, regardless of billions of dollars being printed in the backyard of Federal Reserve for free distribution later, and that no one was willing to lend unless he was rewarded with the return associated with the risk. (RRR)

 

Across the Atlantic, in London, relatively free market, the LIBOR rates rose to the highest, and yet no one was emerging as lender to lend to even commercial bank.

 

Why lenders look for higher return when the risk increases? 
If the lender lends today $100 for just 3% (when the FED rates is only 1.5%), and that loan goes bad, he has to lend it 33 times (100/3) more just to recover the old loan, and that too, provided no new loans going bad. If he had lent at say 24%, and if the loan goes bad, he has to lend only 4 times more to recover his old loans, presuming again all new loans remain good. This is why the local governments have to raise the funds at 20% or more in some cases. That is, there are lenders apart from Mr. Buffett.

 

When the risk profile of large banks have increased to the extent of bankruptcy running into hundreds of billions of dollars, the money market does become very tight, and the lenders withdraw into shelters when the market rates continue to be managed low by FED. The action of the FED to pump the markets with over $900 billions a day before and cutting the rate by 0.5% does not help. The money goes to bankrupt banks that merely set off the new funds against old losses. They do not lend more.

 

Mere injection of liquidity is not enough. The FED has to make it conditional, that if $50 billions are given to say, Citi group, it should deploy funds only for granting new loans or buying the new Commercial papers issued by various corporate business with suitable sub limit so that the money is distributed widely. Supposing, the sub limit is set to $ 500,000 for small businesses to $2 billions for large businesses like General Motors, they can carry on business by paying their employees the wages and salaries.

 

Float a New Bank or use smaller Regional Banks and fund them with $ 200 billions
Bush Administration may extend new loans through new bank or existing smaller banks to small businesses, large corporate entities, and consumers, subject to real tangible security with first lien. Limit the loans up to 25% of their annual sales, so that money rolls over every 3 months at least. 

 

Why avoid large existing banks?
All large banks are saddled with billions of dollars of old bad loans. Most of them are irrecoverable as they have no security backing. They are secondary papers with second lien. The primary security has been foreclosed, seized and sold by the primary lender, with nothing left for secondary holders. By funding these bankrupt banks is like adding fuel to fire. Good money would be thrown after bad money. When the money is scarce, the efforts should be to use the new supply as efficiently as possible.

 

The banks that are almost bankrupt may be asked to transfer deposit and loan accounts (including primary mortgaged loans with first lien (not the secondary derivative papers) to new banks, so that normal business continues.

 

Old banks with billions of dollars of bad loans without security may be merged with each other so that cross obligations are set off against each other. If after this adjustment, they are still unviable, let them die the natural death or hold the talks with debtors to accept only 20% of the outstanding debts repayable in next 5 years. Thus, the liability of the large banks will be reduced to 20% and liquidated @ 4% over next 5 years.

 

Higher Rates are biggest enemy to leveraged derivatives and swaps
We are in the midst of highly leveraged economy. It has to be deleveraged. These derivatives thrived in low interest rates environments where the cost of swap was very low. If the rates rise to reasonable level, even up to 9%, all leveraged transactions will be forced to reverse immediately. At the same time, the Bush Administration may fund the banks Mortgaged loans to consumers at special rate of say 3%, so that their interest cost does not rise. This kind of differential interest scheme may bring immediate stability in the market place.

 

Higher Rates also help Insurers
Ask AIG – why and where did it lose in billions of dollars, when there were not much claims due to natural calamities, fire, flooding, or death of individuals. They did not lose in their core business.The insurance companies receive free premium income from the insured. They found difficult to invest in higher yield long term treasury or local government bonds or well rated corporate bonds.

Mr. Greenspan has effectively killed the market of long term treasury bonds (10 to 30 years) by artificially lowering interest rates or even cancelling 30 years bonds altogether for 4 years (2003 onwards) so that interest servicing cost for the treasury remain artificially low on its massive public debt.

 

When the insurance company found no alternative long term high yielding safe treasury investment they started looking for exotic derivatives that used to give them higher yields, without realizing what they were getting into. The companies like AIG finally started buying highly risk derivatives like CDO, (Collateralized Debt Obligations) CDS (Credit Default Swaps) and CLN (Credit Linked Notes) without realizing the financial risk and legal evaluation of the securities to backed. If the insurance companies had option to invest into say, 6% 10 year bonds or 8% in 30 year bonds, they would not have invested into derivative papers with fake back up securities. 

Money should have some cost 

The Money has been printed so much that  the toy homes can be built by the American children with real US dollars. If Paulson and Bernanke prints $1 trillions now, they will have to print  100 Billion $10 Currency Notes with the logo of ex-Presidents. If they are spread on the 8 lane high way in United States,  it will cover 22,600 Miles 

The economists like Greenspan and treasury secretaries like Rupert Rubin or Henry Paulson (from Goldman Sachs) made the money worthless the moment they were issued or created. Their money did not have material cost 1% to 2% for most of the times. Their theory was that low interest will boost the stock market that will increase GDP, which will increase the value of their stocks held in Goldman Sachs. This was a myth.

 

Low Rates do not increase GDP or lead to healthy growth
Example,
Look at Japan.. It has been following near Zero interest rate policy since 1994. 14 years have passed and its Nikkei has slumped from 38000 to 9000+ yesterday (lost 75%) with no perceptible growth in real terms. Retiring Japanese with 10 millions yen find difficult to take care of himself in his retiring days because he does not earn anything on his life time savings. If he spends, he feels that his savings will be empty in a few years. If he was getting even 6% interest, he would have got interest income of 600,000 yen which he could spend without seeing his savings depleted.

Reasonable high Long term rates do encourage savings and increase GDP in real terms
Example,
In country like India, the growth is robust because long term interest rates for Provident fund etc are over 10%. This encourages savings from where the people spend without seeing their savings depleted. The PF amount is invested into long term high yielding Government bonds that assures steady decent income.

Look at what happened in USA 
And look at what these Greenspan and company did for United States. Often he was applauded for his brilliant management of economy. His philosophy was that Consumers contribute to GDP, so to make them spend more and more, lower the interest rates. That made the consumers to contract more and more debts – credit card, car loans, educational loan, home loans, top up loans on home mortgages and host of other loan products that fatten the banks with usurious interest rates.

 

Look at the signs at large stores selling Car to furniture. No interest for 6 months, no payment for 12 months….etc. This is what happens when the money is free and does not have cost. The people just become spendthrifts and go bankrupt. If they find difficult to pay – file for bankruptcy – that’s all. It is more like “Payable when able”

 

Money, Treasury and Gold 
If money does not have cost, they are more like Toilet paper. They can be printed overnight in Bernanke Press. Treasury bonds are also papers – can be printed at the sweet will of President Bush or Paulson or Bernanke.  Papers like Dollar and Treasury bonds can be printed and re-printed like books are reprinted with popular demand. Gold can not be produced artificially – it has to be dug from the ground

 

Why Interest rate will go to 24% to even 30% 
If you can not control inflation, control inflation numbers, were the theory, belief and practice of Greenspan. He invented new theory of inflation – Core Inflation and Non –Core inflation which was excluding violent food and energy prices.

• Goddamn idiot. Food and energy constitute over 40% of household budget. Every family has at least 2 or 3 children, one of two college going young adults, 2 to 4 cars depending on the number of adult members in the family. How could you exclude the cost of Energy and Food from inflation and adjust your interest rate policy.
• When I left stock broking field, the CRB index was 191 – it rose to over 430 recently, that is gain of 240 pts in less than 7 years. This index covers over 17 elements of daily use – from Orange juice to Oil to dairy products and  commodities of daily use. In other words, the inflation rose by 31% per year (240 divide by 7). The United States was having “negative interest rates” by at least 25% for over 7 years in a row. 
• Those rates are now catching up and there is nothing the government can do. The creative management of inflationary numbers (called manipulations in layman’s terms) can not last for ever. You have to pay for it. The pay time has finally come in October 2008.
• The interest rates in United States have to rise to 24% minimum to weed out all excesses in the system that was built under the lousy regime of Alan Greenspan. May be high interest rates may remain for only 6 months, but that will force everyone to start respecting their own dollar.. The lesson that United States will learn is that “Money is not Free” and do not take it for a free ride.

How to defrost the present liquidity freeze? 
Stop cutting Interest rates – in fact raise interest rates up to 6% in 6 months in increments of 1% per move. Higher rates will bring out money lenders into the market that will force down the interest rates later with more participation. Currently, their participation in almost NIL

Adopt “differential interest rate policy”

• Fund the banks of their mortgage finance portfolio with cheaper funds @ 2.5% for the time being. (MFR = Mortgage Finance Rates)
• Fund the banks of their Credit card portfolio with cheaper funds @ 2.5 % over the 30 year MFR
• Other bank borrowings to businesses be permitted @ 3.0 % over 30 Year Mortgage Finance Rate (that is, if MFR is 2.5%, then other commercial borrowings to be 5.5%).
• Please note that charging of even 9.5 % interest rate (based on maximum MFR of 6.5%) from FED to banks on commercial borrowing is not excessive. This is the ruling Prime Rae in most of the Asian financial centers and emerging economies.
• Bank to customer interest rates may be restricted to 2% over the Fed funds rate for respective category.
• Example, if MFR funding is at 2.5%, then the customer lending rate may be 4.5% (2% over 2.5
• The idea of allowing only 2% above Fed funds rate is to ensure that the bank does pass on the benefit of the rate cuts in future to every section of the society. Currently, they may pay more but much less than the market rates.

Merge 3 or 4 large banks that have inter-swap positions outstanding.
This will cancel out cross obligations of each other.

• Then Consolidate the fund based external debt (not deposits).
• Call the creditors of bad loans to work out discounted solution, agreeing to pay not over 20% of debt outstanding (or more if there is real security,
• Extend Federal guarantee to such amount and charge the respective banks guarantee commission @ 2% per annum.
• Take some equity for such help or warrants convertible into shares at any time for next 10 years.
• The creditors will have no choice but to accept the compromise, otherwise they will lose everything.
  EXAMPLE: If the total bad debt outstanding is $ 50 billions, reach a compromise for $ 10 billions. Extend the Federal Guarantee to $10 Billions and charge the bank guarantee commission @ 2% of guaranteed amount ($200 Millions per year).
• After all these adjustments,. Ask the bank to come out with secondary public issue
• of which the State may take up 10% of public offer. This will infuse the confidence to investing public. 

Extend the Tax Cuts as under:

• Corporate tax be cut by 5% now, followed by another 3% in second year, 2% in third. Total 10%
• The present corporate taxes of 35% is too high for anyone to invest in USA It will come down to 25% in 3 years. (In my proposal it is brought down to 18% in progressive manner)
• This will increase the real earnings of the company and boost its stock price, enable raising of new capital and also boost the stock market. There will be real strength in the economy, not paper trading or manipulations that both Paulson and Bernanke are indulging in.
• Personal Tax Cut may be extended by reducing the initial tax slabs substantially.
  The initial tax slab be drastically reduced so as to benefit the low wage and middle income wage earners.
• While Interest rate may have some negative effect on the market (in fact it will have none, because slightly more interest rate is more desirable than wholesale collapse of financial system),
• The lowering of Corporate Tax and Personal Tax will have significant positive effect on the entire range of capital markets throughout the United States.

My Letter to the President Bush was ignored and they blew up over $ 3.5 trillions in 15 days

In my book, I have designed full range of tables of Income Tax for the corporate sector and also Individuals. The plan is so comprehensive that it will be liked by Individuals and corporate alike. Not only that, I have given most valuable suggestions to increase the revenue from other sources, so what is lost in taxation, is more than compensated from the other revenue stream.

I only regret that the no one in the White House paid any attention to my 4 page letter which contained the summary of 18 chapters of blue print for the recovery of United States of Americal. I had also warned that if the immediate actions were not taken, worse consequences would follow. That was my letter recceived by White House on 25 Aug 2008 and the situation started worsening 15 days later. And you know what happened from second week of September. I had also sent a copy of that letter to the Consul General of Hong Kong for his information and also for proper identifcation purpose.I would release the letter shortly on this blog site within a few days.

By not paying any attention to such important letter, at a time when the solution was eluding the nation, the Bush Administration blew up over $ 2.5 trillions in loss of market capitalization and also over $1 trillions in so called “bail out” plans.

Kalidas, Hong Kong
Article ref: 0811-006 (Originally published on blog on October 10,2008)
Blog: http://www.anilselarka.com/

Anil Selarka
http://www.articlesbase.com/credit-articles/defrosting-liquidity-freeze-dealing-with-credit-crunch-689773.html

With the economy suffering and an increasing amount of people out of work, it’s no surprise that more people are falling behind on their payments. Incessant collection calls can be both embarrassing and upsetting. Learn your rights and your options for relief.

With the economy suffering and an increasing amount of people out of work, it’s no surprise that more people are falling behind on their payments. Incessant collection calls can be both embarrassing and upsetting. While creditors certainly have the the right to collect, you are offered some protection under the Fair Debt Collection Practices Act. In Texas, you are further protected under the Texas Debt Collection Act. A creditor may contact you, or may sell the debt at a reduced rate to a debt collector—regardless of what party is attempting to collect, there are certain inappropriate behaviors and it’s important to know your rights.

Collectors MUST: Creditors must identify who they are and why they are calling. If you request the name and address of the original creditor they must give it you within thirty days. They must provide proof of the debt, if requested, also within thirty days. They must also notify you of your right to dispute the debt. If you choose to do so, you must request it in writing, and during that thirty day investigation period they must not attempt to contact you.

Collectors MUST NOT: Collectors are expected to behave in a reasonable manner and are prohibited from “abusive and deceptive” conduct. Collectors are not allowed to call you outside the hours of 8am to 9pm, and must not repeatedly call in an attempt to harass you. They must not use profanity or abusive language, or threaten unrealistic legal action or arrest. They also cannot misrepresent themselves as a member of law enforcement or an attorney. If you do have known representation in the matter, collectors must not contact you. Once you have notified a collector that you prefer not to be contacted at work, they must not attempt to reach you there, nor can they discuss the nature of the debt with outside parties, other than your lawyer or spouse.

These are the primary do’s and don’t designated for your protection. However, even if a collector abides by these rules, if the debt is legitimate, then you still owe it! If you are simply unable to pay, you do have options. The first is to attempt to negotiate with the collector, for example, offer to pay a reduced amount or participate in an extended payment plan. Unfortunately, this is rarely successful, and the best option for many may be to file for bankruptcy. Once you are under the protection of the court, creditors are notified and must discontinue all attempts to collect immediately.

Texas is very bankruptcy-friendly, offering greater protection than most states. In Texas, over 100,000 people declared bankruptcy last year to get the fresh start they needed. Contrary to what many believe, your credit is not permanently damaged and you will still be able to have credit. There are two types of bankruptcy, and a knowledgeable bankruptcy lawyer can educate you as to your options in Texas.

At the Malaise Law Firm, our <a href=”http://www.malaiselawfirm.com/bankruptcy”>Texas bankruptcy attorneys</a> have over forty years experience helping people file bankruptcy. We serve clients in San Antonio, Houston, Corpus Christi, Harlingen, Brownsville and McAllen. If you are being harassed by creditors, we encourage you to call for a consultation. Bankruptcy can offer relief from your credit problems, but may or may not be right for you and your situation. We are committed to helping our clients do what is in their best interest.

Helen Walker
http://www.articlesbase.com/law-articles/debt-collection-your-rights-your-options-683449.html

Bankruptcy Basics provides basic information to debtors, creditors, court personnel, the media, and the general public on different aspects of the federal bankruptcy laws. It also provides individuals who may be considering bankruptcy with a basic explanation of the different chapters under which a bankruptcy case may be filed and to answer some of the most commonly asked questions about the bankruptcy process. Bankruptcy is a process where debts are legally eliminated from ones life. The court is the only one that can grant or deny a petition for Bankruptcy. It does this by reassuring creditors their debts will be repaid and also the individual that they will not lose everything they have. It also takes the pressure received off the debtor knowing that the debt won’t ruin or take over their life.

Bankruptcy is a legal process through which people and businesses can seek to obtain a fresh financial start when they are having financial difficulties and are unable to pay their debts as agreed. When a business files bankruptcy it can be for one of two reasons. One, they actually mean to liquidate and close their doors or two, they are buying themselves more time with their creditors to be able to pay off existing debts. When a person files for bankruptcy, a court eliminates either or part of the existing debts under types of chapter in which they came.

The process is also designed to provide a measure of protection to creditors. Secured creditors are often in a better position than unsecured creditors because they hold lien on the property of the debtor that supports the right to payment.

Whole your bankruptcy case is pending, most creditors cannot try to collect their debts from you directly. They also may not attempt to collect any and all discharged debts excused by the court. However, not all debts are discharged.

There are several causes of bankruptcy. Approximately 90 percent are the result of unemployment, medical bills, or divorce. Every individual situation is different, though a common feature of many bankruptcies are a large amount of debt or credit cards with high interest rates. Filing for bankruptcy is a very personal, serious decision. Most people file when they see no other way out of debt. Once the decision has been made, the company or individual may declare bankruptcy by petitioning the court. This is a request for protection and relief under the bankruptcy code. The person filing for bankruptcy must provide information about his and her assets, liabilities, income, and expenditures. They also must verify that they have undergone credit counseling within the allotted time.

Bankruptcy stops most garnishments, although it depends on why you’re being garnished. What you will be allowed to keep will depend largely on your state laws. Some states allow you to keep all of the equity in your home, while others exempt a certain amount.

There are several Advantages to Filing Bankruptcy:

• A fresh start to your financial life
• Collection efforts are stopped upon filing
• Stops wage garnishments
• Can keep all or at least some of the equity in your home

There are also some Disadvantages to Filing Bankruptcy:

• Stays on credit record for years to come
• Makes getting credit harder if not impossible
• May lower opinion of ones self worth

If you decide to file, you definitely need an experienced bankruptcy attorney. Steer clear of petition preparers, typing services or paralegals. And if you are even considering filing on your own, remember the old adage that a man who acts as his own attorney has a fool for both an attorney and a client.

James123
http://www.articlesbase.com/franchise-articles/bankruptcy-fundamentals-understanding-what-is-it–697710.html