Credit Cards

As tempting as it may be, do not run up credit cards right before filing for bankruptcy. Many times, people purchase expensive items, like jewelry, appliances and furniture right before they know they are going to file for bankruptcy. Most of the time, they are still going to be responsible for paying back this debt.

Make sure you have a solid understanding of which debts can be eliminated by bankruptcy, and which ones cannot. Debts like student loans, child support or alimony payments, and taxes, are generally not discharged through bankruptcy. Bankruptcy can help if your wages are being garnished or if you have large unsecured debts, like, credit cards and utility bills. Contact a qualified Riverside bankruptcy attorney today.

If you are trying to rebuild credit after filing for bankruptcy, you should apply for secured credit cards. These can help you establish credit, but you have to make sure that they are one of the companies that report to the major credit bureaus, since all of them do not.

Do not assume that you must cancel all your credit cards when filing bankruptcy. In fact, many card companies will contact you to discuss keeping the account active. In these cases, you would be asked to resign an agreement. This agreement means that any debt is kept outside of the bankruptcy filings. Make sure your balance is not a large enough amount to cause you continued financial trouble post-bankruptcy.

Don’t charge up your credit cards knowing you are going to file bankruptcy, if you have already started the process or made recent purchases for luxury items. While this type of purchasing is still part of your “˜debt,’ it is likely that you’ll still be responsible for repaying the money for those items. In most cases, what you are attempting to do is obvious.

Bankruptcy filing is a topic shrouded in mystery and embarrassment for many. This is an unfortunate thing because the fact is that the process can be extremely helpful for those facing serious financial distress. Take the guidance and information in this piece to heart. It is possible to learn if bankruptcy might be the right financial solution for you.

Share on Facebook

Shop around for different credit cards. Interest rates and other terms tend to vary greatly. There are also various types of cards, such as cards that are secured which require a deposit to cover charges that are made. Make sure you know what kind of card you are signing up for, and what you’re being offered.

It is good practice to check your credit card transactions with your online account to make sure they match up correctly. You do not want to be charged for something you didn’t buy. This is also a great way to check for identity theft or if your card is being used without your knowledge.

If your credit history is bad, or you have no credit history, consider applying for a secured credit card account. These accounts have limits, and are often linked to the person’s bank account to guarantee card payments. Prompt payments on your balance look excellent on your credit record and will improve or establish credit.

Always pay your credit card bill on time. Paying credit card bills late, can result in additional charges on your next bill, such as late fees and interest charges. In addition to this, late payments can adversely affect your credit score. This can negatively affect your ability to make purchases, and receive loans in the future.

To make the best decision regarding the best credit card for you, compare what the interest rate is amongst several credit card options. If a card has a high interest rate, it means that you will pay a higher interest expense on your card’s unpaid balance, which can be a real burden on your wallet.

When it is time to make monthly payments on your credit cards, be sure that you pay more than the minimum amount that you are required to pay. If you only pay the small amount required, it will take you longer to pay your debts off and the interest will be steadily increasing.

As was discussed earlier in this article, many people complain that it is difficult for them to select a suitable credit card based on their needs and interests. If you know what information to look for and how to compare cards, picking the right one is a lot easier than it seems. Use this article’s advice and you will choose a great credit card, based on your needs.

Share on Facebook

If you are trying to rebuild credit after filing for bankruptcy, you should apply for secured credit cards. These can help you establish credit, but you have to make sure that they are one of the companies that report to the major credit bureaus, since all of them do not.

A good personal bankruptcy tip is to be well versed in all of the rules when it comes to filing for bankruptcy. The last thing you would want is to be penalized, or taxed by the IRS. They do indeed tax some of the debt that you’ve managed to get rid of.

After a bankruptcy, acquire new, manageable lines of credit and use them responsibly. Within a couple of years, you will qualify for certain loans again, including mortgages or car loans. Pay your bill on time to build a better credit score and demonstrate your financial responsibility to future lenders.

Do not feel embarrassed or guilty about filling for bankruptcy. Many people fear that they will be treated as second class citizens after they declare themselves bankrupt. However, this is not the case. The option to ‘declare yourself bankrupt’ was developed by the government to enable assistance to be given to people who find themselves overwhelmed with debt and in need of a fresh start. Last year, over 1.4 million people filed bankruptcy and the majority of them are now living a happy, debt-free life. So, there is no need for you to be afraid of bankruptcy stigma.

As you are no doubt aware, the decision to file for personal bankruptcy can be a difficult one. If you have resolved to take this step, however, you need to be familiar with the process, so that it will go as smoothly as possible for you. Remember the advice from this article and you will have a better outcome.

Share on Facebook

Read, memorize and then, understand the terms and conditions of each and every credit card you have. Know what the interest rate is, as well as, what each fee is and have the payment and bill cycles marked on your calendar. Doing this means there will be no surprises when it comes to your card.

In today’s world, much is done online. While you can handle your accounts any way that you choose, many people are managing their accounts online these days. If you choose to do this, have security as a focus, and make sure the credit card’s login site is encrypted. Your financial safety should be your first concern.

When it comes to using a credit card, be sure that you keep an eye on your balance, so that you do not exceed your limit. This is important because not only may you be charged a fee, but the company might also increase your APR. Your peak balance will also show on your credit report, and having a balance higher than your limit does not reflect well upon your report.

Want a credit card that gives you frequent flyer miles or cash back? Many people are a sucker for the frequent flyer miles, and that is a good program. Some companies offer both. If you have to make a decision, go with the cash back option. It is a much more lucrative deal, and it will benefit you much more as a whole.

Be sure that you only apply for credit cards that you know that you will need now, as well as, in the future. This is important because having too many credit cards may lead to irresponsible spending and living outside your means. Doing so may very well cause you to become buried in debt and have a hard time paying it off.

Bankruptcy

If you have gotten in over your head with credit, and have no idea how you will pay back your debt, don’t give up just yet. Many companies now have hardship programs which you can enter, that will lower your interest, set you up on a payment plan you can afford, and save you the damage of bankruptcy or litigation.

As soon as you begin to fall into financial trouble, cease using credit cards. By not doing so, individuals often find themselves in trouble. They begin charging monthly bills and then the interest accumulates, making it impossible to pay and often ending up in bankruptcy. This is credit card abuse, and this is something you should avoid at all costs. If you find yourself in this situation, be sure to contact a good bankruptcy lawyer in Orange County CA to get you back on track.

As mentioned earlier, you have an interest in credit cards and found a great place to research them. Be sure to take the advice provided here and use it in any circumstance that you run into with your credit cards. Following this advice will be certain to help you out immensely.

Share on Facebook

A lot of banks no longer issue secured credit cards, but it is common to find them being offered through credit unions. If you would like to sign up for a secured credit card, you can open an account with a credit union and take advantage of whatever cards they offer.

Be dubious of zero percent teaser rates. The grace periods where these take place can lead you into the trap of being overly confident and spending too much. Know what the go-to rate is going to be and when it kicks in. Have some idea what your likely balance will be at that date.

Learn how to manage your credit card online. Most credit card companies now have online resources where you can oversee your daily credit actions. These resources give you more power than you have ever had before over your credit, including, knowing very quickly, whether your identity has been compromised.

An important thing to remember when using credit cards is to do whatever is necessary to avoid going over your specified credit limit. By making certain that you always remain within your allowable credit, you can avoid costly fees that card issuers frequently assess and guarantee that your account always remains in good standing.

Keep track of how much money you are spending when using a credit card. Small, incidental purchases can add up quickly, and it is important to know how much you have spend on them, so you can understand how much you owe. You can keep track with a check register, spreadsheet program, or even with an online option offered by many credit card companies.

It is good practice to check your credit card transactions with your online account to make sure they match up correctly. You do not want to be charged for something you didn’t buy. This is also a great way to check for identity theft or if your card is being used without your knowledge.

Double-check the terms of a 0% APR offer before using it. It is common to transfer balances from higher-interest cards onto these new cards, in order to minimize interest. However, the 0% rate does not always apply to balance transfers. If you overlook this fact, transferring your debt will be a waste of time.

When you are making a purchase with your credit card you, make sure that you check the receipt amount. Refuse to sign it if it is incorrect. Many people sign things too quickly, and then they realize that the charges are incorrect. It causes a lot of hassle.

It may seem unnecessary to many people, but be sure to save receipts for the purchases that you make on your credit card. Take the time each month to be sure that the receipts match up to your credit card statement. It will help you manage your charges, as well as, help you catch unjust charges.

Be extremely careful when using a credit card to get cash advances. Cash advances usually carry a higher interest rate and the interest starts accruing the day you get the cash. That means you won’t have the interest-free grace period you get on your normal balances before they are due each month.

Bankruptcy

If you have gotten in over your head with credit, and have no idea how you will pay back your debt, don’t give up just yet. Many companies now have hardship programs which you can enter, that will lower your interest, set you up on a payment plan you can afford, and save you the damage of bankruptcy or litigation. But for many, bankruptcy is the best option. Contacting a Santa Ana bankruptcy lawyer right away will help you get back on track.

Surprisingly, if you file for bankruptcy, many credit companies will offer you cards within six months of filing. The reason is simple. They know that you cannot file for bankruptcy for another 4-8 years, which makes you a pretty low risk for default. To repair your credit, you may take one of these offers, but you must pay these on time. If you do not trust yourself, avoid these offers.

Cease all credit card use immediately when it becomes apparent that you are having difficulty paying the bills. You will soon find yourself in serious financial difficulty if you do not put the credit cards away. They begin by using a credit card for necessities, and the interest begins building up. A credit card is no substitute for a regular paycheck!

As stated before in the introduction above, credit cards are a useful payment option. They can be used to alleviate financial situations, but under the wrong circumstances, they can cause financial situations, as well. With the tips from the above article, you should be able to avoid the bad situations and use your credit card wisely.

Share on Facebook

Federal and state laws list certain types of property that a person can claim as exempt. In some cases, your home state may choose to allow you to decide whether you want to abide by state or federal regulations regarding exemptions. In general, it’s a good idea to go with whatever set of regulations allows you to claim more of your property as exempt.

As a rule, you are allowed to keep the tools of your trade, clothing, and everyday household goods. Household goods include things like appliances, books, furniture, and pets. Under federal regulations, you can also claim unlimited exemptions for healthcare goods like wheelchairs, breathing machines, and at-home care equipment. If you are filing for bankruptcy jointly with your spouse, many exemptions can be doubled.

Property isn’t the only area where exemptions can be claimed. You can claim exemptions for things like alimony, wrongful death trusts, unemployment, veteran’s benefits, public assistance, and social security. Disability insurance, immature life insurance policies, and life insurance proceeds can also be exempt.

Be aware that creditors can attempt to contest your exemptions. When you meet with your bankruptcy trustee about a month after filing, your creditors may attend, too. At this point, they can try to argue against the property you’ve claimed as exempt, to make it eligible for sale.

Regulations for bankruptcy exemptions and the filer’s ability to choose federal regulations over state regulations varies from state to state. Before you file for bankruptcy, discuss your options with a good bankruptcy attorney, so you can begin to decide which pieces of your personal property you wish to claim as exempt.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

Share on Facebook

To start with, chapter 13 bankruptcy is bankruptcy in which the debtor is not required to sell off their personal property to cover their debts. Instead, the debt is restructured and a multi-year plan is formulated that ensures that the creditors get regular payments.

Unfortunately for them, people generally file for bankruptcy when they can’t afford the regular payments they would be making under the original terms of their debt agreement. This means that creditors will, as a rule, be getting much smaller payments under chapter 13 than they would under the terms of their original agreement.

Some debts are secured, while others are unsecured. Secured debts are debts where the creditor can repossess something- for example, if you take out a loan for a car, a creditor can repossess your car if you fail to pay. Unsecured debts are granted based on a person’s credit history, like credit cards. Secured debts have more protection than unsecured debts.

A debtor can always be forced to surrender their car or home, even during bankruptcy, ensuring that their creditor gets something out of the deal. Unsecured debt doesn’t come with that kind of guarantee. A creditor seeking redress for unsecured debt can walk away with just a fraction of what they were owed.

Lastly, bankruptcy forces creditors to stop adding up things like interest and late fees. While they would normally be able to keep piling on fees, then sue you for what they’re owed, filing for chapter 13 forced them to stop that. They also cannot harass you, intimidate you, or attempt to take you to court.

So, what does all of this mean for debtors? Unfortunately, creditors have more money and sway than debtors do, so they’re generally the ones who influence bankruptcy legislation. Recent changes to bankruptcy law now make it harder for debtors to file.

If you are considering filing for either chapter 13 or chapter 7 bankruptcy, you’ll need the help of a good bankruptcy attorney. They’ll be able to help you determine which type of bankruptcy you’re eligible for, how much of your debt can be reconciled, and what kind of protection you’re entitled to.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

Share on Facebook

These debts include criminal fines (like court fees or penalties), and back taxes. You may also not attempt to discharge any debts incurred as a result of criminal activity. For example, if you were charged with negligent homicide, you cannot attempt to use chapter 7 bankruptcy to discharge any debts related to the victim’s death, even if they are not court fees or fines.

Debts incurred due to fraud or false information will not be considered dischargeable.  Fraudulent debts are those that you rang up knowingly before filing for bankruptcy. For example, if you obtained a new credit card, charged it to the limit purchasing items subject to bankruptcy exemption, and then filed for bankruptcy less than ninety days later, that debt will not be discharged.  Similarly, if you lied on a credit card application in order to obtain the card, any debt incurred on it won’t be eligible for chapter 7.

Any debts that weren’t listed on your original bankruptcy filing also will not be discharged.  When you file for bankruptcy, it is your responsibility to list all of your dischargeable debt. Any that you neglect to mention will not be considered at that time.

Alimony or child support is also not dischargeable, however divorce settlements may be if it is mutually agreed upon by your former spouse.

Lastly, you also cannot use chapter 7 to discharge debts that you racked up paying for non-dischargeable debts. If you took out a loan or cash advance in order to pay for a fine relating to a criminal charge, for example, you are not eligible to claim that loan in your bankruptcy filing.

If your debts fall under these criteria, don’t worry. Even if chapter 7 isn’t an option for you, you might still be eligible to file for chapter 13 bankruptcy, instead, since it operates a little bit differently. Contact a good bankruptcy attorney in order to go over your complete list of debts, so you can determine whether or not you are a candidate for chapter 7 or chapter 13 bankruptcy.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

Share on Facebook

Chapter 7 bankruptcy is the type of bankruptcy most people end up filing for. With chapter 7, many of a person’s assets are liquidated in order to repay their financial obligations. This will eliminate some types of debt, but things like mortgages and car payments will remain. It’s good for getting rid of things like credit card debt, or other bills that don’t require an initial deposit of collateral (referred to as unsecured debt).

In many states, filing for chapter 7 bankruptcy can only be done by individuals that pass a “means test,” which compares their income to a statewide average to determine whether they have enough debt to warrant filing for chapter 7 bankruptcy. This type of bankruptcy remains on a person’s credit history for ten years, and there is a six to eight year waiting period before they will be able to file for bankruptcy again.

Chapter 13 bankruptcy differs from chapter 7 in that it does not eliminate debt. Instead, debts are consolidated, and a repayment agreement is reached between the debtor and their creditors. This repayment agreement usually spans three to five years, and impacts the debtor’s credit history as long as the repayment agreement is in effect. Chapter 13 bankruptcy is good for individuals with a high income, and it does not require debtors to liquidate their assets.

Filing for bankruptcy is more complicated than it sounds, and the decision of how to go about doing so isn’t an easy one. A good bankruptcy lawyer can help advise you on whether or not bankruptcy is a legitimate option for your financial situation, and assist you in determining whether chapter 7 or chapter 13 is more appropriate.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

Share on Facebook

Though declaring bankruptcy is extremely useful for people who have wound up in over their heads when it comes to overdue bills and loan balances, it isn’t always suitable for every situation, and the decision of whether or not to declare bankruptcy isn’t an easy one. In general, it’s a good idea for a person to file for bankruptcy when they have assets that creditors  can attempt to seize. This includes things like real estate, a car that’s worth over a certain value, or a job where employees’ wages can be garnished.

It is not usually necessary for someone to file for bankruptcy when they don’t meet these criteria, since the worst most creditors will be able to do is keep calling and sending letters. People very rarely end up in jail just for owing money, and creditors can’t attempt to seize your household goods, furniture, or other owned items that don’t count as assets.

Filing for bankruptcy prevents creditors from continuing to harass you, and restructures your debts so you can pay them off. Certain kinds of debts may be eliminated entirely. This will negatively impact your credit score, usually for five or ten years before the bankruptcy filing is removed from your credit history. Fortunately, most people who need to file for bankruptcy have credit scores that can’t really get much worse, and being able to reduce or eliminate their debts can actually end up making their credit better than it was before the declaration of bankruptcy.

Though bankruptcy has a long-term, negative overall impact on your credit score, it can still be a good decision for you if you have things creditors can take from you. Bankruptcy will keep them from hounding you, and give you some legal protection while you repay your remaining debts.  By declaring bankruptcy, you’ll enable yourself to get a fresh start financially, and go on to build a stronger credit history for yourself.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

Share on Facebook