Bankruptcy Types
Top Credit Card News!
Today, credit cards come with all kinds of horns and whistles to allure as many solvent customers as possible. The fact is we are so busy in our everyday life that we simply have no clue that some of our plastics offer generous perks. To apply for a super-great credit card is not enough to maximize your credit card benefits - you should know how to make the most of those credit perks on your plastics. Some of these credit deals have limitations and restrictions, the others should be used at certain merchants only. The big question is - how to maximize credit benefits on your card?
Click here to read more...Let us be honest, for most of us choosing a new credit card is a time-consuming process. A man of indecision is the scene one can hardly find charming. First and foremost, you should determine the type of the card you would like to obtain, then you should choose the best rate. When it comes to interest rates, the amount of the rate is not the only concern of credit cardholders. The difference between variable and fixed interest rates is really significant. Now that the prime rate is extremely low, more and more people prefer obtain variable-rate cards. Let's take a closer look at fixed and variable credit rates and find out how they work.
Click here to read more...Initially, plastics were designed for those customers who seek for more convenience when spending their money. Now that a credit card is a necessity rather than a privilege, cardholders want to see more options on their plastics. Today card companies offer credit products that meet the expectations of various consumer groups - from college students to sports fans and art-lovers. In other words, they allow getting more benefits when making eligible purchases at your favorite merchant. And what about plastics that enable people to save?
Click here to read more...For most cardholders, a solid credit history is the aim they're trying to achieve by working hard on their credit. While some people manage to acquire a good credit rating without any particular efforts, the others suffer badly from their damaged credit history.
Probably, bad credit is not so bad itself. It would be better to say that interest rates and other charges associated with credit are far from ideal. One may have excellent financial habits, but if he or she has never obtained a loan, it may be a big problem for creditors. Bad credit may be a result of financial failures and credit card misuse. No matter what's the reason of your low credit score, the shortcut to low rates is a high credit score. Learn how you can fix it!
Click here to read more...Chapter 7 vs. Chapter 13 Bankruptcy
Generally, about one and half million people file bankruptcy annually, and for many Americans this has become a fact of life. If truth be told, a growing number of people who file bankruptcy are educated, mid-range baby boomers with an extreme level of credit card debt. Still, not only this class suffers from bankruptcy. Bankruptcy can be an alternative for a person who has reached a point where they can no longer support the debts they have incurred.
What Kind Of A Fellow Is This Bankruptcy?
Bankruptcy allows individuals to discharge from debts or, in plain words, a person legally owes nothing to the creditors any more. Bankruptcy affords working out a repayment plan that will let a debtor who cannot pay the creditors, to disburse the debts dividing assets among the creditors.
Bankruptcy is also aimed at liberating some debtors from financial responsibilities that have been accrued. This is possible after their assets are allotted, even if they have not and cannot pay off pay all debts.
You have 2 options in filing for individual bankruptcy.
Chapter 7 bankruptcy (straight bankruptcy)
Chapter 7 deals with liquidation - a debtor is to prepare a request listing of assets and money obligations, submit it to a US district court and pay a fee for filing. In Chapter 7 bankruptcy many (not all totally) debts are let off as most part of the debtor’s property is sold to repay the debt. Still, some assets are protected in certain terms.
Release from debts through Chapter 7 does not include:
• fines
• alimony
• certain taxes
• child support
• some educational-loan-related debts
• debts that you fall short of disclosing to the bankruptcy court.
• debts following the loans you took presenting the creditor a false financial statement (at creditor’s request).
• debts resulting from fraud, embezzlement, driving intoxicated, robbery or other deliberate or with malicious intent acts.
For Chapter 7 you must produce full information on finances in a petition: forget a debt, and it may not be canceled. What’s disreputable, when you do not list all your assets, you could afterward be legally responsible for fraud.
Filing for bankruptcy you automatically prevent your wages from being garnished, checking or savings account unfilled, and yourself from being prosecuted or sued for failure to pay.
After the bankruptcy procedure, you will not have to pay dischargeable debt that in Chapter 7 includes:
• most unsecured loans
• some court decisions against you
• back rent you are due to a landowner
• unpaid bills for legal or medical services
• documentarily proved loans from friends or family
• unpaid bills for public utilities (phone, gas, electricity)
• bills for credit cards, gasoline cards, department store cards, charge cards
You are responsible for debt not included in the debtors’ discharge. It may be a loan that was issued, funded, secured or assured by an entity of the Government or a nonprofit company.
Chapter 13 bankruptcy (wage earner plan)
In a Chapter 13 bankruptcy, one with steady earnings who owes a debt, produces a plan for liquidating debts to a bankruptcy court, taking future earnings or other property into account over an amount of time. In such case, the debtor usually maintains all or major part of the property.
Throughout the period the repayment plan is valid (up to 5 years) the debtor makes regular payments to a trustee assigned according to Chapter 13. The trustee divides the money among the creditors.
In some situation, the bankruptcy court may confirm a plan granting the debtor the right to maintain all assets although the repayments will be less than the full debt amount. Some debts non-discharged under Chapter 7 may be discharged in Chapter 13 if the debtor manages to fulfil the plan.
You will come through the same preparatory procedures as for Chapter 7 bankruptcy.
As for unsecured debts, including debt on credit card, you will have to propose a repayment plan to the court. The court will admit or decline your plan.
As for secured debts, you agree to pay off, at least the amount your creditor claimed and will agree to, otherwise, you agree to give the collateral.
What is better? Benefits and shortcomings of Chapter 7 and 13 bankruptcy
Your decision depends on your personal financial circumstances. Each type of bankruptcy has its benefits and shortcomings. Having serious problems with money, you will surely choose Chapter 7 procedure, if it’s possible to attain it.
| Type of bankruptcy | Benefits | Shortcomings |
| Chapter 7 |
• quicker to finish • helps to start over • the total of unsecured debt you can cancel is limitless if all property and debts were stated and there is undoubtedly no fraud in your listing |
• you must surrender your nonexempt property to the court and permit it to be sold • after you file, some of your debts may remain (a car loan or debts incurred to deceive the creditor) |
| Chapter 13 |
• you maintain all your property, whether it is exempt or nonexempt • you are allowed to break up your debts by class - creditors of different classes require different payment percentages • you have a longer repayment period |
• your total debt has to be under $1,077,000 (secured debt - less than $807,750, unsecured debt - less than $269,250) • you pay off your debts from your income • if debts remain after your bankruptcy, you have to pay them off which could have seriously damage your expected income |
How frequently you can file for bankruptcy
A person may have good net assets but nevertheless get into financial troubles. Bankruptcy occurs when a person goes beyond available assets and is incapable to pay off outstanding debts. In this situation, bankruptcy may be a good option.
Conforming to the law, you can file for Chapter 7 bankruptcy one time in 6 years. The majority of Chapter 13 plans allow 3 to 5-year payments.
Although theoretically you can file for Chapter 13 bankruptcy as frequently as required, you will unlikely file more often than your payment term. To enhance your net assets, avoid bankruptcy - increase your savings and the value of vested interests as well as other possessions, and reduce spending and the sums you owe.
After bankruptcy people may have difficulties in taking credit, however, not always. Some debtors feel it easier to get credit having erased the debts or even because creditors consider they cannot file another bankruptcy for some period.
Obtaining credit may be easier for those who file for Chapter 13 and pay off a part of their debts. People who submit for Chapter 7, make no effort to pay off.
The bankruptcy law forbids your employer to discharge you because you have filed bankruptcy and you will be able to re-build your credit through secured credit cards. The fact that you filed for bankruptcy stays on your credit report for 7 to 10 years after the fact.
I filed for bankruptcy last year. Now Iwould like to apply for one credit card only, just to keep track with my credit report. Do you think is possible to get one? Even if I get a small amount of credit I'll be satisfy. Please, reply ASAP.
Sincerely,
JC
i filed chapter 13 about 4 years ago have paid everything back that was inclued in the bankruptcy .but that did not pay my loan company off do i still have to pay them and is iit a good time for me to apply for a used car loan .because i got a used car short after that and like it go back
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