Bills, creditors, debt collectors. Are you yearning for the days when all you had to worry about was the money in your piggy bank? If so, you are far from alone. Whether its illness, loss of a job, or simple overspending, it happens to the best of us. But that doesn't mean your financial situation needs to go from bad to worse.
Steps You Can Take To Regain Control When Finances Get Out Of Hand...
Developing A Budget: Start by doing a realistic assessment of how much money comes in and how much your spend. List income sources, "fixed" expenses (mortgage or rent, car, insurance) and expenses that vary (entertainment, clothing, recreation). Don't leave anything out, no matter how trivial it seems.
Obviously, the necessities are your first priority. Then you can prioritize the rest. The bottom line Is, that unless there's money to cover, you're going to have to cut back on spending.
Contacting Your Creditors: Many creditors will work with you if you let them know you are having trouble making ends meet. Tell them why it's difficult for you and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't let them give up on you ? get to them before they resort to collection agency action.
Dealing With Debt Collectors: Nobody wants to deal with the bill collector ? least of all you! But, should it happen, be sure you know the rules. The Fair Debt Collection Practices Act is the law that dictates how and when a debt collector may contact you ...
A debt collector may not call you before 8a.m. or after 9p.m ... or at work if the collector knows that your employer doesn't approve of the calls. Collectors may not harass you, make false statements, or use unfair practices when they try to collect a debt.
Debt collectors must honor a written request from you to stop further contact.
Bankruptcy: Personal bankruptcy is generally considered the debt management tool of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, making it difficult to acquire credit, buy a home, get life insurance or sometimes even get a job. Learn more about bankruptcy
On the other hand, bankruptcy is a legal procedure that offers a fresh start for people who can't satisfy their debts. Individuals who follow the bankruptcy rules receive a discharge or court order that says they do not have to repay certain debts. There are two primary types of personal bankruptcy:
Chapter 13 allows you, if you have a regular income and unlimited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. In chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather than surrender any property.
Chapter 7 known as straight bankruptcy, involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings. Some property may be sold by a court-appointed official (trustee) or turned over to creditors.
NOTE: You can receive a discharge of your debts under Chapter 7 bankruptcy only once every six years.
Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments utility shut-offs and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary.
Personal bankruptcy usually does not erase child support, alimony, fines, taxes and some student obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.
Being burdened by debt is overwhelming and puts you into a position of great vulnerability. And, clearly, yielding to bankruptcy is an extreme measure that requires a great deal of thought. In the last few years, a record number of consumers have been filing for bankruptcy.
Copyright © Credit and You | All Rights Reserved |
To find out more about bankruptcy, how the most common chapters of bankruptcy work, bankruptcy terminology, and easy steps anyone can take to repair there credit report, visit http://www.creditandyou.com/dealingwithdebt. html it's a free information website!
People often get to a place where they simply can't... Read More
What is Credit?Credit means that you are using someone else's... Read More
Are you still clearing a mountain of debt amassed last... Read More
With medical collections costing doctors millions upon millions of dollars... Read More
With the high cost of gasoline and the amount of... Read More
(Money You Don't Have to Pay Back) 1. One way... Read More
On October 17, 2005 President Bush's sweeping bankruptcy reform law... Read More
Entrepreneurs have a tough time in their formative years. They... Read More
Still living from pay to pay? Or envying those great... Read More
With mounting bills and unforeseen hardships, you may be considering... Read More
Debt management (specifically unsecured) is the first step to taking... Read More
A debt solution like bankruptcy should really only be used... Read More
The idea of moving abroad to escape debt seems to... Read More
It is always possible to negotiate with creditors ? even... Read More
Amy Wright, 34, was extatic when her realtor showed her... Read More
If you're reading this article right now I'm sure that... Read More
For most Americans, credit card debt is a dangerous and... Read More
Once you file bankruptcy a court appointed bankruptcy trustee will... Read More
Anyone considering Bankruptcy may have experienced fear after reading an... Read More
There is current concern from the Bank of England that... Read More
In April 2005, Congress made sweeping changes in U.S. bankruptcy... Read More
Honorably and ethically rid yourself of burdensome debts using the... Read More
You go to the mail box and scan - a... Read More
There are many debt relief programs out there both off... Read More
The main reason for getting out of debt today, is... Read More
1) Use your AssetsIf you have assets with some significant... Read More
Many people have been taught that you cannot get ahead... Read More
Although many consumers would argue differently saving money doesn't have... Read More
When you find yourself thinking about using a credit counseling... Read More
The financial and psychological burden of being in debt causes... Read More
Do you have stacks of unpaid bills?Are you in debt?Are... Read More
This method is simple, but requires some discipline.First, you have... Read More
Is there a way to get out of debt without... Read More
This method is simple, but requires some discipline.First, you have... Read More
Knowing how to negotiate debt settlements is the key to... Read More
Entrepreneurs have a tough time in their formative years. They... Read More
What is debt settlement?Debt Settlement is a process to settle... Read More
As consumer debt continues to spiral out of control, debt... Read More
1. Eliminate the legal obligation to pay many of your... Read More
If you have incurred substantial personal debt, consider these options:... Read More
Here is a useful guide to bankruptcy. It should be... Read More
At some time or another during our lives most of... Read More
Are you still clearing a mountain of debt amassed last... Read More
I'm sure you'll agree that budgeting, saving money, and eliminating... Read More
Many consumers that are bogged down in debt frequently turn... Read More
If you're thinking about an IVA, it is essential to... Read More
This May, the Department of Trade and Industry in the... Read More
Debt is quickly becoming an epidemic in America. However, through... Read More
Bankruptcy is one of the tougher choices we as adults... Read More
The financial and psychological burden of being in debt causes... Read More
With medical collections costing doctors millions upon millions of dollars... Read More
WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law,... Read More
Bankruptcy is a legal way to offer folks with high... Read More
On April 20, 2005, President Bush signed into law the... Read More
Debt Management plans offer credit counseling clients a different and... Read More
A Debt Checklist allows you to look at items and... Read More
People often get to a place where they simply can't... Read More
Many Christians feel uncomfortable with the notion of being in... Read More
Can you stop debt collectors ? . . .You better... Read More
Most Americans are aware of the sweeping changes in U.S.... Read More
As vice president of the American Credit Foundation, a nonprofit... Read More
Congress recently passed sweeping legislation that will significantly reform American... Read More
Personal bankruptcy is a legal way to give people with... Read More
Today's consumers benefit drastically from the usefulness of credit. Credit... Read More
Debt Settlement companies work with your creditors to help you... Read More
It is always possible to negotiate with creditors ? even... Read More
Debt Relief |