Archive for the ‘Personal Finance’ Category

Bankruptcy can be a very painful process. However, these laws are placed for consumer protection. Here are some of the things that you need to expect when going bankrupt.

Bankruptcy should be a last resort.

A bankruptcy remains in your credit history for ten years. According to the United States Bankruptcy code, counseling should be done prior to approval of any bankruptcy case. This is done to provide consumers with alternatives to filing a bankruptcy case.

Understand the two types of bankruptcy.

The most common type is Chapter 7 which is a form of liquidation bankruptcy. On the other hand, Chapter 13 is more of a repayment plan for consumers. Today, it is pretty difficult to get a Chapter 7 bankruptcy because of the means test.

Know your options when filing a bankruptcy.

A lot of people choose to file bankruptcy without legal help. However, it is highly recommended that you seek the help of a lawyer. People who choose to work with big firms often find themselves working with a paralegal instead. Find a firm that offers direct contact with a lawyer.

Meet with your lawyer and go over the case.

A good lawyer should be able to assist you with all your questions. Based on your financial affairs, your lawyer will determine which type of bankruptcy is best for you. Your lawyer will also assist you with answering the BAPCPA’s means test.

Know how much it cost.

Fees usually vary from one professional to another. Some lawyers charge for a flat fee while others will based it on the total amount of debt you have. It is best to go with the latter. There are also lawyers who will let you pay in installments and will file your case with a deposit. On average, the legal fee is $1,700 but this can vary depending on your geographic location. There will also be court filing fees.

Refer creditors to your lawyer’s office once he or she has been retained.

Say goodbye to those fairly annoying calls. As soon as your attorney has filed the case, no creditors should be calling you about your debt. This rule stays enforced and creditors can be liable if they don’t follow it. Any willful violation of the automatic stay may result in damages against the creditor, including lawyer fees and punitive damages.

Wait for a creditor meeting.

As soon as your lawyer files the case, you will be notified about the date of your 341 meeting or creditor meeting. This is a very important part of the process. Before the meeting, review all files with your lawyer. This meeting will allow the trustee to ensure that you have been truthful about the case.

For Chapter 7 bankruptcy, the trustee will determine whether there are assets that can be liquidated and if it can be used to pay creditors.

If they determine that your assets are exempt, a no distribution report will be filed in the court. If you still have non-exempt assets, they will be sold and paid to your creditors. For a Chapter 7 case, you may never have to pay all your creditors back. For Chapter 13, consumers are required to go into a three to five year plan that will pay creditors with as much as your income can.

Creditors are given 60 days or less to challenge the discharge of debts.

When there are no lawsuits, you will receive a debt discharge for Chapter 7. A discharge means that you don’t have to repay discharged debt and that creditor should never collect money from you anymore. Whether or not your debt will be discharged, it will all depend on the Bankruptcy Code provisions.

Payday loans are short term cash bonds on a borrower’s personal check that is held for future electronic access or deposit to the borrower’s bank account. A person usually writes a personal check for the total amount borrowed plus a finance charge and then receives the cash. Lenders usually hold the checks until payday when loans and other finance charges are paid in a single lump sum. To repay a loan, borrowers may redeem the check by paying that fast payday loan with cash, let the check be deposited in the bank or paying the finance charge to roll the loan for the next pay period.

The Payday Loan Terms

Fast payday loans range from $100 to $1000, based on state regulations for maximum amount. Average term for payday loans is about two weeks. These loans usually cost 400 percent annual interest. Finance charge runs from $15-$30 for every $100 borrowed cash. And for two week cash loans, finance charges may result in interest rates from 390-780 percent APR.

How to quality for a payday loan?

The process of acquiring a fast payday loan is pretty simple compared to other types of loans. In order for you to qualify a payday loan, you must present a valid ID with a photo and a proof of income like pay stubs and paychecks. Most lenders do not conduct credit checks for payday loans. Credit usually takes some time and payday loans are made to be fast and efficient. Since this kind of loan puts the lender at risk, interest rates tend to be higher.

If you want to avail of a fast online loan, then payday loans are a good way to go.

A credit report tracks a person’s history of paying his or her debt obligations. High credit card balances, inaccurate information and late payments can drag down your credit scores. There are over 30 million people in the United States who are struggling with credit score issues. For you to improve your credit rating, it is vital that you know where you currently stand. Here are easy ways on how you can repair your credit score quickly. Learn more about breaking free from debt secret as you read along.

  1. Pay off credit card balances. Paying your installment loans can help your credit score but it may not be as dramatic as clearing off credit card balances. Lenders want to see a big gap between the credit you are using and your credit limits. Getting your balances up to 30% below can really help you improve your present credit rating.

    Fix your Credit Rating Fast!

  2. Use your credit cards lightly. Racking up huge balances will hurt your credit standing, regardless of whether you pay all your bills each month. You can increase your credit score by limiting charges to around 30% or less than your card’s limit.
  3. Check your limits. Scores can be artificially depressed if the lender is showing a lower limit than what you have. Many credit card issuers will update this information per request. You can go on a wild spending spree to raise your limit, but a more efficient solution would be to pay balances before statement period ends. Check your previous statement and see which day of the month it usually is. And then, go to the issuer’s site about one week in advance to pay off the amount you owe. It will not raise your reported limit but will widen the gap between the limit and closing balance- this could boost your credit rating.
  4. Dust off old cards. The older your credit history gets the better. But if you stop utilizing these cards, the issuer may stop updating these accounts. Experts recommend that you use your old cards once in awhile to keep it updated.
  5. Get some goodwill. If you have been a good customer, the lender might agree to erase a late payment from your history. You may have to send a request in writing to improve your chances of a ‘goodwill adjustment’.
  6. Dispute your old negatives. If you had issues with your telephone company with an unfair bill a few years back, you can protest for unjust charges or disputing the account with the credit bureau.
  7. Blitz significant credit errors. Credit scores are based on the information in your credit reports so make sure you have the right information.