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Credit Cards After Bankruptcy – What You Should Know

Bob Tremerituus — Fri, 11 Jun 2010 08:23:26 +0000

People who have felt the pain and humiliation of bankruptcy may direct some of their anger towards the credit card industry. However, they also have a need to rebuild their credit score and may be wondering about credit cards after bankruptcy.

The easy credit available through a credit card has been one of the main reasons for people getting into financial difficulty.

At first the minimum payments are manageable, but as more debt is accrued and economic times start to take their effect, even this can become too much. Minimum payments are missed and one’s credit score deteriorates.

For this reason, many people decide not to have any credit cards after bankruptcy, seeing them as evil. But is that truly sensible?

Contrary to what many may think, a credit card can be key to restoring your credit record.

Avoiding debt is not the answer. Sure, it’s sensible, vital in fact, not to get into debt that you cannot repay, but demonstrating you can repay some debt is key to restoring your financial record.

Perhaps surprisingly, it is possible to obtain credit cards after bankruptcy if you are prepared to do some legwork. It will be at a much higher interest rate though.

Before going any further, a word of warning. Stay away from unscrupulous card issuers. They will charge an exhorbitant rate of interest, but may not register your card. By law, any card should be registered with the credit authorities – if it isn’t you won’t see any benefit to your credit score, as no one will know about it!

The best thing to do is to take out a secured credit card. This is where you deposit a sum of money, say $500, and the company will give you credit up to that $500. The card is “secure” as you are using funds that you have deposited with them.

So why bother with the card at all?

The point is, using cash does not improve your credit score, nor does simply staying away from credit. This way, you are using credit which is guaranteed to be repaid (you deposited the money remember?), and your credit rating will start to improve.

If you want to improve your credit score a secured credit card will help considerably, and with minimal risk to yourself.

This is just one aspect of your credit rating. credit cards after bankruptcy are one weapon in the arsenal of credit restoration. For further free information about this and bankruptcy in general visit www.howtoclaimbankruptcy.net Get a totally unique version of this article from our article submission service

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Financial Difficulties? – Bankruptcy Is An Option

christianstoreguest — Wed, 27 Jan 2010 09:49:18 +0000

If you are like many Americans, and people in general these days, you have been experiencing financial difficulties that have been weighing you down. The great run of the past few years, where it seemed like everyone had a job, all the real estate prices were going up and up, and you could buy just about anything you want on credit are over!

The problem is, many people who put so much of their purchases on their credit cards or took out equity from their home, only to have the value of the home go down during this recession, and now they are struggling to pay the mortgage or the credit card bills. If this sounds like the situation you are in, well there may be some luck heading your way.

As most people know, the US Government has stepped in to support many Americans who are struggling with their home values and mortgages. President Obama announced the Making Home Affordable Program in 2009 to try to assist in modifications on existing homeowners. Of course, there are many different rules that the owner must live with in order to qualify for the modifications. The other issue that has come up is the bank’s unwillingness to help with the modification process. But, the reality is, if the banks do not help with modifications, they will have more and more foreclosed properties to deal with.

But for credit cards, there is no real government program to assist. And to be honest, they should not. It was the people who used their credit cards too much that are at fault, along with the banks who issued them. But, even for credit card debtors there are options. If the bank does not want to work with a person to settle the credit card debt, or if they wont assist in a payment program, there is always the ability to file chapter 13 bankruptcy.

If you file bankruptcy, and depending on the chapter you file, you will have the opportunity to erase the debt that has been holding you down. With chapter 13 bankruptcy, you are restructuring your debt (and possibly eliminating some), so that you can get out from under the debt cloud. Of course there are many consequences that come with filing bankruptcy, and you can find more http://www.realbankruptcyinfo.com here.

If you are looking to completely clean the debt slate, you would want to look at filing chapter 7 bankruptcy. This is a full liquidation, and will take into account your assets available to pay off your debts. With this chapter, it is possible that you can end up with very little, but you wont have the debts that you have incurred.

With bankruptcy, you will have a fresh start and stop the annoying collection calls. Doesn’t that sound like a good idea? Find out more at http://www.realbankruptcyinfo.com/

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How To File Bankruptcy – Bankruptcy Process

christianstoreguest — Sun, 24 Jan 2010 15:07:46 +0000

If you are thinking about filing bankruptcy or would like bankruptcy information, you must know how to file bankrupcty. so, before you can file either Chapter 7 or 13, you must be able to pass under what is called a “means test”. The means test identifies which people have the financial capacity to continue to pay a significant portion of their bills to creditors. The means test involves comparing the persons’s income to the average income of the state or county in which the debtor resides. If the debtor’s gross income is above the average, another set of calculations (based on ratios of debt to income) will identify whether he or she can file a Chapter 7 liquidation or Chapter 13 repayment case.

It does not matter where you are located, in order to file bankruptcy, there is a lot of paperwork to file. The bankruptcy process begins with the filing of a petition and many forms with the local bankruptcy court. These forms consist of itemized lists of all your assets, debts, income, expenses, as well as other very important personal background and financial information. In addition, you must file a certificate of credit counseling, tax returns (or transcripts) for the recent tax year; all tax returns that were filed with the IRS while your bankruptcy case is pending; copies of pay stubs or other proof of income received 60 days prior to filing; statement of currently monthly income and any reasonably anticipated changes in income or expenses after filing.

While in a Chapter 7 (liquidation) case, the bankruptcy court will appoint a trustee to represent the interests of your creditors. After a month or so from the date of the filing, you have to be present at a “meeting of creditors” in which the trustee will answer all questions regarding your assets, debts, and other financial information. Despite the name, banks and creditors hardly ever are at these meetings. Once finished with the meeting, the trustee liquidates the property that may be taken from you. He or she will then take the cash and split it amongst the creditors. Once liquidation is done, the court will schedule one last hearing and discharge all debts. At this point, you no longer legally owe your creditors and they are forbidden from trying to collect anything from you.

A Chapter 13 (wage earner) bankruptcy case begins by filing the same papers as under a Chapter 7. In addition, you must file a workable plan for repaying your debts with the bankruptcy court, which will approve the plan. You start sending payments directly to the chapter 13 trustee shortly after filing. The trustee then pays your creditors according to the terms of the court-approved plan. When you have repaid your creditors according to the plan, a court hearing will be held and you will be discharged. The debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect.

Chapter 13 is often preferable to chapter 7 debt relief because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a “plan” to repay creditors over time – usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7 under the means test.

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Even The Dependable Face Overwhelming Debt!

christianstoreguest — Tue, 22 Dec 2009 19:04:05 +0000

I was amazed to read the following statistics from Families USA about responsible individuals facing overpowering credit debt because of circumstances beyond their control:

“Who is Medically Bankrupt?”
60 percent: attended college
66.4 percent: owned a home
20 percent: were veterans or on active duty
80 percent: had health insurance at onset of illness
38 percent: lost income due to illness
866,000: estimated medical bankruptcies filed 2009
2.3 million: individuals in medically bankrupt families, 2009
Source: Families USA

Judgments and stereotypes about debt don’t work in this recession. People can work very hard and still experience negative circumstances from factors they had no control over (illness, unemployment, divorce, wage earner disability or death, economic downturns, foreclosures, etc. ). To add insult to injury, the credit card companies have had it all their own way with recent legislation severely curtailing the consumer’s ability to recover from bankruptcy.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was anything but what it was named. This bill was a delight for the creditors and banks. It essentially ensures that anybody but the completely destitute (and large corporations) will eventually have to pay off their debt, with any increase in your financial circumstances going right to the credit institution. If there is anything to learn here, bankruptcy is just not a valid alternative any more.

Other issues to be aware of, especially when contacting your creditors, is the matter of universal default. If a credit company has any reason to believe you might have difficulty making your payments, if only that you have another credit source that reports your having repayment problems, they can and are:
1. Raising your interest rate to as much as 39 percent.
2. Raising your minimum monthly payment from 2 to 5 percent (so a monthly bill of $500 is now over $1200).
3. Capping your credit limit to the amount that you currently owe.
So be very careful when talking to creditors that you don’t give them any reason to think you are having difficulty making payments, as they will slap you down just like that.

Just so you know that not everything is doom and gloom, there is only 1 strategy that works – primarily because it uses the banks own legal techniques to create prompt and lasting debt freedom for you. This strategy has been working beautifully over the last 6 years for thousands of individuals. What else would debt relief look like except to have your harassing phone calls answered for you, your creditors given a legally crafted response to their correspondence, having an impenetrable barrier placed between you and your creditors, getting your debts resolved for as little as 10 cents on the dollar (or even nothing), and having your credit profile restored to even better than it was before the debt occurred? credit debt relief is possible and you must consider this alternative as you pursue true credit relief.

Regardless of why you are in debt or how you got there, we can help you keep your home, pay rent, feed and clothe your family, and provide adequate medical care by helping you avoid bankruptcy with this Program.

And when you are back on your feet, there’s even greater hope with various high return passive income systems that we have culled from the unverified, unproven, and falsely advertised income systems floating around the internet!

Wishing you a peaceful, abundant, and prosperous future,
ConsumersDebtHelp.com

Debt Relief Consolidation – Bankruptcy Is Not The End

Elanora Kelly — Mon, 23 Nov 2009 08:11:05 +0000

If you are one of those folks whose bills are starting to heap up at home, I believe it is time for you to discover how to consolidate debt. You have to do this as quickly as possible so you may not be put in a worse situation. There are many sorts of techniques that you may want to be in a position to pay off all of your bills. You should learn to keep an eye out for your money well being as it is kind of hard to get up when you have dug a hole that’s too deep for you to handle.

What are the most effective techniques that you can try out to repay your debts?

So you might have been asking yourself over and over again: How do I consolidate my debts? As a start, one thing that you can do is to look for a consolidation company that can provide assistance to your problem. This company will contact your creditors and work with them so that they can think of a plan on how you can pay off everything that you owe. One common reason why some people are behind in paying their credit card bills is because of credit companies that have very strict and often unreasonable rules when it is about making payments.

The financial professionals that make up the consolidation company that you choose can help you with negotiating with these creditors. They will do their best to make them loosen their grip until they get you out of this trouble.

One good point about sliding into debt consolidation is that it gives you the advantage to transform all of your prior bills into a single regular payment that’ll be less than the amount that you were re-paying then. This makes it less complicated for you to pay your obligations. It decreases the overpowering feeling and pressure that is on you. With having to pay only once a month, you become less stressed and centered with what you want to do.

All the payments that you make will go to the company that you decide to hire. You are paying off the loan that you agreed to have with them. There are two most common kinds of loans that these companies typically offer to their customers: unsecured and secured. But before you decide which one to get, try to research and fully understand what each of the two has to offer.

Secured loans are the best choice for folks who have debts but still have a trustworthy source of revenue. They’re sometimes ready to pay in a timely fashion. Unsecured loans are good for people that have unstable incomes. It is crucial that you study all this info first before getting to a last call. Ensure that you are mindful of what they have to supply and what services you can get from them. Consolidating your debt gets less difficult when you have the right knowledge and the right consolidation company by your side.

Learn more about Debt Relief Consolidation. Stop by Elanora Kelly’s site where you can find out all about How to Consolidate Debt and what it can do for you.