As soon as you decided to file for bankruptcy, your financial status is currently not good and your only option is to file one. However, as much as possible, it would be best to avoid bankruptcy because it can still affect you somehow.

Bankruptcy can be depressing and filing for it can be intimidating. For some people, filing for bankruptcy is overwhelming aside from the fact that experiencing financial crisis is already a burden. Some people believed that when they file for bankruptcy, they would be mocked or become the talk of the town.

If you are dreading that your boss might fire you when you file bankruptcy, you don’t have to be. The decision to file bankruptcy is not a crime and you did your best to avoid bankruptcy but you are left without any choice. There are no laws that an employer should fire an employee when they file for bankruptcy. However, if you and your employer have agreed on a contract that you will retain good credit standing while working for the company, then filing for bankruptcy might cause you to breach your contract. But legally speaking, without any legal contract or reason, your employer cannot fire you because you filed for bankruptcy.

In addition, if you wanted your financial problems to remain a secret to your employer, you don’t have to worry much about it. When you file for bankruptcy, your employer would not really find out unless you tell them. However, if it will already involve about wage deduction in case the ruling is based on Chapter 13 bankruptcy, then you would have to inform your employer, until the court has made the decision. Your bankruptcy will remain private unless you tell it to everyone.

On the other hand, if your concern is when you wanted to apply for a job and you have filed for bankruptcy, then you might have limited options. There are some employers who consider good financial standing before hiring an employee. Hence, if you have competition on the job that you are applying to and you filed for bankruptcy, you have less chance of getting hired. Usually, employers hire those with good credit standing and personal background.  The employers can think of many excuses to reject your application especially if you have poor credit standing based on your credit report.

If you are worrying if your employer will fire you because you filed for bankruptcy, you should not worry because it won’t happen unless you signed a contract about having good credit standing while working for the company. Bankruptcy might seem depressing and hopeless but actually, you can think of it as a way to start anew. After the court has decided and you are liberated from your debts, you can already begin rebuilding your credit. It might seem impossible and you might feel that you have limited options at first but you will eventually find your way. After that, you should have learned your lesson and avoid bankruptcy again.

Mr V lost his job and his wife had an accident soon after. Their health insurance did not cover even half the whopping bill of her treatment. The family’s savings accounts were drained and the bills piled up. Soon they were delinquent on their loans, and collection agents started hounded them. A couple of creditors sued, and the Vs ended up declaring bankruptcy.

If the above story reads similar to yours, you must be facing the effects of bankruptcy. After the harrowing time you had dealing with those collection agents, you might be thinking “never again” will you take a credit card. You want to avoid any and all loans, and just go through life peacefully and staying within your means. While the staying within your means approach is the correct one, swearing off credit is a mistake you should not be making. Whether we like it or not, credit plays a huge part in our lives today, and if you don’t use it, your credit score will not improve. A bad credit score, which is one of the effects of bankruptcy, means higher insurance premiums, higher rents for a place to stay, and a struggle to get a loan to buy a house later on.

So, taking a second chance is a must for you. Don’t worry. Stay disciplined and patient, and go through the process of credit rebuilding.

Start by cleaning up your credit reports. There might be errors harming your credit score. Get your credit reports from all three major credit reporting agencies, go through them thoroughly, and dispute each and every error.

Once the reports are clean, take up credit. It won’t be as tough to get as you might be imagining it to be; there is a whole host of companies that deal in second-chance credit for people suffering from the effects of bankruptcy. And you are not much of a credit risk either because right now you don’t have any debt burden and are barred from filing bankruptcy for a number of years. However, most of the second-chance offers you get will carry exorbitant interest rates and outlandish fees. Don’t accept these. Your credit limit will be anyhow low – you don’t want to start off owing half of it just for fees. Shop around. Talk to your local bank and credit union. Establishing a relationship is equally important as re-establishing credit.

You should be able to get a credit card with a low limit, high interest rate, and normal fees. If you can’t get that in an unsecured one, then try for a secured credit card – one that advances credit against a deposit. Try to establish three lines of credit – a mix of an installment loan and two credit cards. Ensure these accounts are reported to the credit reporting agencies. Use the credit cards each month and pay them off in full on time, and stay current on your installment loan. Try not to exceed 50 percent of your credit limit on either card as using up a higher portion of your credit limit is viewed in a bad light.

After building up a payment history for eight to twelve months, your credit score should improve. Try to refinance your loan and see if you can renegotiate the terms of your credit cards, or shop around for new ones. Stick to the process and your credit score should recover substantially in a few years time.

If you would like to improve your credit report after claiming bankruptcy, you are often wondering if it is possible to remove late payments from credit report.

In general, a poor credit score or a negative report can be a hindrance if you are applying for a loan with the interest rate that you want. It can also affect other means of credit like your credit card interest or even the possibility of getting hired from a job you applied for.

To help you improve your credit score rating in order to prevent yourself from claiming bankruptcy in the near future, you need to remove the late payment entries from credit reports. The whole process may take some time so it is important to have a lot of patience when you do it. You need to allot some time for the process to work. Hence, if there are companies that promise to remove bad credit immediately, you know better than to trust them.

Before thinking of claiming bankruptcy, you need to work on your bad credit report immediately. First, you need to obtain a copy of your credit report from the reporting companies. Each of the reporting company will send you a free copy of your report once a year. These companies have their websites where you can order your credit report from the individual websites. As soon as you have received the reports, you should look over these reports to see what is written there. If you have late payment and you want to dispute, you need to proceed with the process of disputing the negative report.

For you to be able to process the dispute, you need to ensure that you have all the necessary documentation ready. You can send your proof with your claim. These proofs include statement payment but do not give the original copy. Also, you should block out the other details that you don’t want others to see from your statement.

The reporting agencies have websites where you can file disputes online. However, you can still use the other method which is to write a letter. If you decide to write them a letter, make sure that you include the date and send it with a request for signature.

When the claim is received by the agency, it usually has a window of thirty days to investigate and to get back to you. If the reporting company did not respond to your claim within thirty days, then they are required to remove it from your report. The reporting company must remove it because it is according to the law, even if you were actually late in your payment.

On the other hand, if the reporting company did respond to your claim within thirty days, then all you can do is to stop, or you can file a formal complaint. The process for filing a formal complaint is the same. Again, the thirty day window must be met.

When it comes to reporting late payments and improving your credit score, you should be patient enough and follow the whole process.

Foreclosure is one of the signs of a looming personal bankruptcy. Usually, when you are given the notice of foreclosure, you most likely missed paying monthly dues and you are not able to raise the money needed to pay your creditor.

As soon as you have received your notice, you don’t have to immediately panic or lose hope because there are still things that you can do to be able to stay at your house even after foreclosure.

Generally speaking, foreclosure is a process. It has different stages and each stage may take up some time. The process would depend from one state to another as well as the type of property involved.

If you are planning to file personal bankruptcy because you have received the foreclosure notice, you can still do some ways so that you can remain temporarily at your home while finding for a new place to reside. Actually, there is no need for you to vacate your home immediately after you are informed that your house is up for foreclosure. You can still stay there until the sheriff will evict you. However, if you’re wondering when that day would come, that would depend on the actions that you are going to take.

You can actually delay the process of foreclosure so that the length of time that you can stay at your home will be longer. The process can also be delayed depending on the lender that you are dealing with. Usually, lenders will file foreclosure if you didn’t pay three months’ worth of mortgage. However, there are some creditors that will file foreclosure even if you’re just two months behind your payment dues.

As soon as the bank sends you the notice for foreclosure, you are usually given three months to work things out with your creditor. Again this is not the same for everyone because this would still depend on the state where you are currently residing in. If you are able to talk to your creditor and made an agreement that is favorable for both parties, then you might actually be able to keep your home and avoid foreclosure.

The process of foreclosure can happen for as little as two months to as long as many years. During the process, you can still stay at the property since technically, you still own it. As long as the house has not been sold, you are still the owner and you can’t be evicted. While you are still staying at your home, you need to save up more money especially after filing personal bankruptcy because you will most likely be required to pay higher deposits when you decide to rent or buy a new place to stay.

Experiencing foreclosure may be one of the worst things that could happen in your life but this should serve you a lesson to be wiser in your spending habits and learn to prioritize more important things such as paying your monthly dues in order to avoid these things from happening again.

Under the United States bankruptcy law, Chapter 7 is the means to a fresh start in your financial life, and hence the most popular chapter for filing personal bankruptcy. But considering that it wipes out most of your unsecured debt, its abuse can’t be allowed or it would be unfair to lenders. To prevent abuse, the nation’s lawmakers added some criteria to the bankruptcy law to determine an individual’s eligibility for filing Chapter 7 bankruptcy.

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), passed in 2005, added the provision of a ‘Means Test’ to bankruptcy law. The test is used to determine an individual’s eligibility for filing Chapter 7 bankruptcy. People struggling with primarily non-consumer debt such as investment or business debt, or taxes, get a pass on the ‘Means Test’ and are free to go ahead and file Chapter 7. Others first need to pass the test.

Your income is the fundamental determining factor in the ‘Means Test’. To start with, your income for the past 6 months is averaged and then compared with the median income of a family the same size as yours in the state. The median income is determined from the latest inflation-adjusted figures from the Census Bureau. If your income is lower than or equal to the state’s median income, you may go ahead and file Chapter 7 bankruptcy. On the other hand, if it turns out to be higher than the median income, you move to the second part of the test.

Here, the ‘Means Test’ evaluates whether you would be able to pay back a significant amount of your debts in a Chapter 13 repayment plan. Your disposable income is calculated by deducting a mixture of standardized and actual expenses from your gross income. If it is derived that your disposable income over the next 5 years is going to be below $6,000, you qualify for Chapter 7 bankruptcy. If that figure comes out to be between $6,000 – $10,000, but is not enough to cover twenty-five percent (25%) of your unsecured debt, you qualify for Chapter 7 bankruptcy.

But, if your disposable income is calculated to be between $6,000 – $10,000 and is enough to cover twenty-five percent (25%) of the unsecured debt, or is above $10,000, you are ineligible to file Chapter 7. In such a situation, you can file Chapter 7 only if you can prove special hardship circumstances such as a medical problem or a recent job loss. Otherwise, you can only go for Chapter 13 bankruptcy.

Another factor that impacts your eligibility to file bankruptcy is a dismissal of a previous bankruptcy filing. If you filed for bankruptcy but your filing was dismissed because you did not follow the court’s orders properly or did not present your case properly, or you withdrew your filing after one of your creditors applied for relief from the automatic stay, you are ineligible to file bankruptcy for a period of 180 days.

You are also required to get credit counseling from an approved agency within six months prior to filing bankruptcy to be eligible.

As what the title says, what happens after foreclosure depends on what you do today. People who faced foreclosure often feel depressed and hopeless but depending on their actions there is still life after bankruptcy.

After foreclosure and you are on the brink of losing your home, you can still try to work things out with your bank. This would usually involve short sale or a deed in lieu of foreclosure. In case you can’t work things out on your own, you can always consult a lawyer. Usually, the initial consultation is free so you don’t have to worry about paying exorbitant fees.

If you are wondering whether there is life after bankruptcy, the answer is yes. You just need to be properly informed. If you have lost your home after foreclosure, the first thing that worries you is where your family will stay. If you don’t have serious criminal convictions, you can still be able to rent an apartment. Usually, a bad credit or a foreclosure will only require you to pay a security deposit.  Apartment managers nowadays realized that because of the economic crisis, more people would need to rent apartments because of bankruptcy and foreclosure. However, you still need to be careful in your decisions. Just because you were given offers doesn’t mean that you have to accept them without thinking twice.

When looking for a new place to stay, you should not only consider the price but also the location. You might get a good deal on the price but if it is too far from the place where you work, you might spend more on transportation fees.

Since you have just faced a financial crisis, you should be more responsible on how you spend money. Gradually getting back your life after bankruptcy would mean being more responsible and wiser in making decisions. Do not get yourself piled up with debt again. Choose a place to stay that won’t cost you much including the transportation from your new place to your work place.

It is expected to feel sad or to grieve after you’ve lost your home due to foreclosure; however, it doesn’t mean that life would stop there. You should be able to move on quickly and be more productive. It would be best to review your recent spending habits and cut off those that are not really needed. You should learn from your mistakes and not get piled up with debt again. Make a realistic budget and be sure to stick with it.  It may be difficult at first but eventually you’ll adapt to it.

If you feel like you need some expert advice in managing your debts, you can consult a debt counselor but you should be aware that you might need to shell out more money to pay for their services. It would best to learn how to handle your budget by yourself so that you don’t need to pay for those extra charges.

Experiencing foreclosure is not the end of your life. You need to stand up and move on because these are just some of life’s trials. Your life after experiencing such trials will depend on your actions and on your decisions to start anew.

After bankruptcy you have to start your life all over again. The bankruptcy process can take a huge toll on your resolve and may have you feeling down in the dumps wondering how you will manage to go on financially. Though it will be difficult and slow building your credit score from the ground up you will get their eventually and there are credit cards that you can get easily enough.

The reason you may find it difficult to get a credit card after a bankruptcy filing is because major companies see you as a high risk client and so they may not want to do business with you. You still can get a credit card with the help of companies that issue credit cards to people who have just come out of bankruptcy.

Getting a new credit card after the bankruptcy process can help to rebuild your credit score. All you have to do is ensure that you make regular payments for any outstanding debts that you have on the credit card. This will give you the opportunity to get better credit cards later with better rates and with major companies as well.

The truth is that credit cards are that not that hard to get, in fact you may find that the day after you get through your bankruptcy proceedings you will start receiving credit card offers in your regular mailbox and even in your email inbox. If you take the time to read all the fine print and properly examine the terms of these cards you will find that the fees can be devastating and so you don’t want to use any of these credit card offers you get in the mail.

So let’s get to the information that you really want to be reading about. There are basically two types of credit cards that you can get qualified for easily. These are secured and unsecured credit cards. Both these types of credit cards have their own pros and cons which you should know about before you choose one. An unsecured credit card will give you a credit line without having to deposit monies to secure the line of credit. The secured credit card is of course the opposite of that requiring a deposit to be held as security against the money that you will be borrowing.

The secured credit card is called a prepaid card. It is easier to get approval for this type of card since the company issuing the card will be at less risk for lending you money as they will have the amount that was used as security in the event you default on the loan. If you have money that you can use for security this is definitely going to be the best option for you to get a credit card.

With these easy to get credit cards you can improve your credit score by making your payments on time and you get the credit you need to take care of your family following the bankruptcy process. This can ease the financial stresses that are common following bankruptcy filings.

Paying only a percentage of the money that you owe instead of the entire amount is referred to as debt settlement and is often done by people to avoid bankruptcy. There are so many companies today offering this service but not all enjoy good reputation.

A debt settlement can indeed negatively affect your credit score but the intensity varies according to situations. For example; if you have been up to date with your payments so far and would like to settle your debt, then it can grossly affect your credit score. But when you have crossed the 90-day threshold for making payments, then the option of debt settlement will not affect your credit score very badly. Ironic isn’t it? Well, this is because a creditor usually gives the option of settling a debt to a person only when they think that collecting part of the money is better than receiving none at all. But if you have always been punctual with your credit card payments, the creditor has no reason to worry and believes that they can collect the entire amount; debt settlement is not offered as a choice in this situation even if you are looking for a way to avoid bankruptcy.

You will have to pay an initial amount as enrollment fee with every debt settlement company. Then, a fixed monthly sum is decided which will also have to be paid to the company. This money is not paid off to your creditors; instead they hold it for a period of three to six months depending on the amount and the circumstances. After this period, a representative from the company will meet your creditor and try to negotiate a settlement on your behalf. The important thing to keep in mind here is that in spite of paying money to the debt settlement company, you will continue to receive calls and emails from your creditor since they are not receiving any amount from your side.

Once you stop payments to the credit card company, this information is passed on to the credit bureau and you can soon find your credit score plummeting. If the creditor agrees to debt settlement and you settle your account, this information is also reported to the credit bureau. Now, your account status will read ‘paid’ but not ‘paid-as-agree’ as it does in normal circumstances. This negative listing will always remain so which can be viewed by all potential creditors every time they look at your credit history.

Even if you want to avoid bankruptcy and opt for debt settlement, then make sure that you go through a reputed company. Research well and find out if the organization is accredited by TASC (The Association of Settlement Companies); the debt arbitrators must also be certified and licensed. Discuss all the details like initial fees, monthly payment etc. before hand and make sure that you sign a service agreement with the company. Working with a licensed organization ensures that your money is safe and your debt settlement in good hands even if you have to take a hit at your credit score.

Car Loans after Bankruptcy – 3 Tips on Financing Your Car with Bad Credit

If you have had to file for Chapter 13 bankruptcy for some reason then you’ll find out that it impacts your life in many ways. For starters, it will feature on your credit report for the next 7 years, making it very difficult for you to get cheap credit. You’ll realize this is a huge problem if you have to buy a new car especially if you are forced to rely on dealer credit. Thankfully, there are things you could do in order to get the car of your choice. In fact, you will also find out how to rebuild credit slowly so that you get back on your feet again.

There are quite a few lenders who offer loans to people who have very bad credit, even if it is caused due to filing for bankruptcy. Interestingly, these loans can sometimes be cheaper than the credit offered by vehicle dealers. The added advantage they offer is that you are not restricted to any model of car the dealer wants to promote. The first thing you should do is search for these lenders. You can use the internet to locate a large number of companies that offer bad credit car loans. In fact, you can get these loan offers within less than a minute.

The next thing to do is make a detailed comparison of the various loans available to you. Compare the interest rates offered to you as well as the terms and conditions that apply to you when you take these loans. You’ll definitely prefer to pay the lowest interest rate possible. In addition, the company you take the loan from should have the least possible charges and fees. Remember that lenders usually charge you extra if you pay the loan back earlier. Be careful of dealing with unscrupulous loan companies who charge you extremely high rates on interest and whose intention might be to repossess your vehicle in case you cannot keep up with the repayment schedule.

You then need to focus on how to rebuild credit. The way to do is by being very meticulous when it comes to paying back the money on a monthly basis. You need to prove that you are dependable when it comes to money and the only way to do this is by never missing out on a single month’s payment. You should work out exactly how much money you can pay every month and get your car loan payment plan devised accordingly.

The other thing you should do is take charge of your own credit history. It is possible to view your credit report free of cost, once a year, on certain websites. Make sure that you review it on an annual basis so that you are absolutely certain that it does not contain any errors. If you are very careful not only will you figure out how to rebuild credit but you will also be able to get a new vehicle at a fairly low rate of interest even if you have filed for bankruptcy.

$14.95 debtor education course for bankruptcy