The New Bankruptcy Laws Present New Challenges

The New Bankruptcy Laws Make it More Difficult to File Chapter 7 Bankruptcy

The most recent changes to bankruptcy laws might make it more difficult for you to file bankruptcy. If you're in a higher income bracket you'll no longer be permitted to use Chapter 7 bankruptcy.  Rather, you'll have to file under Chapter 13 bankruptcy and pay off at least a few of your creditors. If you would like to file bankruptcy, you must take part in credit counseling prior to filing.  You're similarly required to attend additional counseling in the area of budgeting and debt management.  The supplementary counseling is a requirement to receive a release of your debts. And, since the law imposes new demands on attorneys, you might have a tougher time acquiring a lawyer to take over your bankruptcy case.

Restricted Eligibility for Chapter 7 Bankruptcy

Under the past bankruptcy laws, you were allowed to choose the type of bankruptcy that looked best for you.  In most all cases that would be a Chapter 7 bankruptcy liquidation instead of a Chapter 13 bankruptcy repayment. But, if you're in a high income bracket, the new bankruptcy laws won't permit you to use Chapter 7 bankruptcy.

To check out whether you're able to file Chapter 7 bankruptcy under the new bankruptcy laws, you must first measure your "current monthly income" against the average income for a family of your size in your state. If your income is lower than or equal to the average, you'll be able to file for Chapter 7 bankruptcy. If it's greater than the median, however, you must pass a new test to file for Chapter 7 bankruptcy.  The new test is known as "the means test."

The purpose of the means test is to discover whether you have adequate available income, after deducting certain allowed expenses and mandatory debt payments, to make payments on a Chapter 13 program. To ascertain whether you pass the means test, you subtract particular allowed expenses and debt payments from your current monthly income. If the money that's remaining after these calculations is under a particular amount of money, you'll be able to file for Chapter 7.

Counseling Prerequisites

Before filing for bankruptcy under either Chapter 7 or Chapter 13, you must attend credit counseling with an agency authorized by the United States Trustee's office. The reason for this counseling requirement is that it helps you in determining whether you really want to file for bankruptcy or whether an informal repayment program will help you recover your financial stability.

Counseling is compulsory even if it's clear that a repayment plan isn't viable for you.  You're required merely to take part in the counseling.  You don't have to accept any repayment plan the agency proposes. Even so, before you'll be able to file bankruptcy, you'll have to deliver any repayment plan the agency offers along with a certificate proving that you completed the counseling.

Toward the conclusion of your bankruptcy suit, you'll have to go to a different counseling session.  This counseling session is fashioned to teach you personal financial management skills. You can't have the discharge that cancels out your debts until you submit proof to the court that you accomplished this requirement.

Lawyers Might Be Harder to Locate -- and Much More Costly

The new bankruptcy laws do add many complex requirements to bankruptcy cases. Many of these brand-new demands impose more duties on attorneys leading to bankruptcy cases being more time-consuming. Among the major new requirements on lawyers is that they must now personally guarantee the accuracy of all the information their clients give them.  That additional demand means that attorneys must spend lots of time on each bankruptcy suit.  Therefore, they'll bill more to take every bankruptcy case.   The new bankruptcy law requirements have actually pushed a few bankruptcy attorneys out of the field completely.

Some Chapter 13 Filers Will Learn to Survive on Less

When you filed Chapter 13 bankruptcy under the older bankruptcy laws,  you had to contribute all of your spendable income to your repayment plan.  The past bankruptcy laws defined disposable income as that which you had remaining after paying your real living expenses. The new bankruptcy laws have modified this computation.  While you still must hand over all of your available income, if your income is greater than the average in your state, you don't get to calculate your spendable income based on your actual expenses.  Instead, you have to figure your usable income utilizing permitted expense amounts prepared by the IRS. And these permitted expense totals must be withheld from your median income during the six months before filing bankruptcy, not from your actual wages every month.

Additional Changes

There are additional changes that can impact you negatively if you're filing or looking at filing bankruptcy.  For plain-English guidance in the new bankruptcy laws, get a copy of The New Bankruptcy: Will It Work for You?

Outstanding Debt Consolidation Companies For Debt Counseling

If you are having debt difficulties and you are unable to meet your financial obligations, then maybe it is time to start researching for a debt consolidation company in order to get specialized advise, it is through a debt counselor that you can get your finance back to order in a short span of time. However, not all that glitter is gold and some of those services, while looking outstanding, do not delivers on their promises.

A good debt consolidation company will back to you with a customized debit consolidation plan that meets your special needs, these plans are designed after reviewing your financial situation. Consequently, if a debt consolidation agency, without previous analysis start offering or suggesting a plan of action, this should be a warning sign that you should take in consideration.

For example, in order to get debt relief you can go for debt consolidation loans, then you need to search for the best alternative, the one with the lower interest rate will always be your first option. However, loans with longer repayment terms will have a higher interest rate than a debt consolidation loan with a shorter repayment period of time, the interest rate in the later one will be lower and certainly you will save money.

Nonetheless, going with the cheaper option means a higher monthly payment, that in the event you do not pay on time; 1.- You loose the benefits you got paying a higher interest rate and, 2.- You are where you started, searching for debt counseling once again.

How about deciding between a secured debt consolidation loan or the unsecured form.

As you can see, it is not all about going and taking the cheaper options, it is all about deciding what are the better options in your very specific financial situation. Then, specialized debt advise coming up from a trusted and reputable debt consolidation agency could be priceless.

All in all, it is advisable counting on the expertise of a debt consolidation company, just make sure you are working with the right ones, usually those that have been in the market for many years.

In conclusion, by working with the best debt consolidation provider you can find, you get just benefits, do your research and go with a trusted and reputable one. It is in your best interest.

Hector Milla runs the Bad Credit Debt Consolidation website - where you can see his best rated debt consolidation service recommendation - and the Best Debt Management Companies resources center. Find free online debt consolidation tips and bad credit debt management advise respectively. Visit for further information.

 

Debt Consolidation Cons : Some Debt Consolidation Tips to Help When Weighing the Plunge

Are you toying with going through a debt consolidation? If so there are some things here that you may like to look into before you take the plunge.

You first off should think about the consequence that it has on your credit rating account. If you get the debt consolidation from equity in your house then you likely don't have a lot to worry about as it will simply show an increase in the sum of your mortgage. This is not a big deal as long as the house is worth more than the rate of that increase.


Your plastic cards could be a totally different story though. Frequently by making a phone call to your charge card holders you can induce them to settle for a smaller sum owed but when you play that they are then able to bestow remarks to your credit account that curious creditors might deem as a colored spot, such as "account shut be lender" or in some cases "account compensated as agreed". The bill paid as agreed says to other loaners that the complete amount of the previous personal line of credit was not "paid in full" and leaves them cause to doubt your creditworthiness.

The account shut by loaner means the loaner took strides to protect themselves so you could not get more in debt with them, that says that they closed your account because you weren't attending it properly.

The most effective thing to do if you are working to do a debt consolidation of some kind is to utilize your home as collateral because you can then get the caah to pay off all the creditors. Then you can ask to have your accounts closed. This will look more pleasing on the credit rating report. If you have to, talk terms with the companies. But if it is posible, pay them off entirely.

Probably the final thing that you must be aware of is scammers. There are a great deal of them out there nowadays just preying on people who are in what appears to them "grave times". These parties will produce all varieties of promises to save you and get rid of all of your severe debt but once they get your cash nothing happens. Beware of parties that call for payment up front, and always check out the company with the BBB for the domain that they assist in.

You have got to be sure you don't yield out your SSN to anyone you can't believe. Likewise make sure you get everything in writing. Depending on where you acquire your consolidation you may execute all your business on the phone and internet or through your local bank. Just be sure to carry through and make sure the party does everything they assure.

A Simple Debt Reduction Strategy to Follow

Don't beat yourself up if you find yourself in deep debt and in dire need of debt reduction help. You aren't the only one out there. With the right directions, and the desire to pay down your debts, you can turn your finances around.

First Step Toward Debt Reduction

The first, and most important, thing you can do is stop using credit to make purchases. Put away your credit cards and line-of-credit checks, and live as if they didn't exist. Get back in the habit of using cash. This will force you to prioritize your spending and recognize which purchases are ìwantsî and which ones are ìneeds.î

Second Step Toward Debt Reduction

You can pay down your debt a lot easier once youíve stopped using your credit cards. It will be even easier yet to pay those debts off if you have enough money coming in each month to live on cash and pay more than the minimum payments due on your credit cards. If you are married and only one person is holding a job, perhaps the other person can consider applying for a job, whether full-time or part-time. You can also consider starting a home based business to supplement your income.

Third Step to Debt Reduction: Spend Within Your Limits

You should always keep your spending within your limits. In other words, donít let your spending add up to more than your income. Easy credit tempts people to overspend without realizing it, leading them into a kind of bondage, e.g., economic slavery. Free yourself from debt by earning enough money to cover your short term needs and pay off your debt in the long run.

Step Four to Debt Reduction: Always Pay More than the Minimum Due

You always want to pay more than the minimum amount due on your credit card statements. At a minimum, try to put aside 10% to 15% of your income just for paying down debts. The more you can pay toward your debts, the better off youíll be. Strive to pay between three and five times the minimum due. One way to start this is by placing the money youíll need at the end of the month in savings each week. The money will add up quickly, and youíll be able to use it to pay off your debts. 

Paying bills on time and keeping your spending habits in check will help keep your debt reduction plan moving forward. Donít forget that payments made more than 30 days late can stay on your credit report for up to seven years. Nowís the time to stop using credit cards, increase your income, curb your spending and pay off those debts!

One of the ways that many people get themselves into a debt emergency is when they have been victims of credit fraud. The best defense to this is a good offence. Subscribe to a quality identity protection site like Creditlock and rest assured that nobody will be able to get new credit cards in your name.

Debt Consolidation Companies Can Help Pay Off Your Credit Card Debt

Today millions of Americans find themselves deep in credit card debt. In some cases it's because someone in the family lost their job and using the credit card was the only way to survive for a while. In other cases, it's due to poor money management on the part of the credit card holder spending beyond their means. Whatever the cause, once you get into credit card debt, it's hard to get out of.

One answer that a lot folks use to reduce credit card debtis to go through a credit consolidation company. Although not necessarily the best of solutions, it's likewise not the worst. For a lot of people, particularly those who seem to have too many credit cards to handle, the primary benefit that a credit consolidation organization offers is that they only have to remember to pay one bill a month. The second benefit that many companies provide is to get the interest rates lowered on your credit cards and, if you're deep into debt, to maybe even get a portion of  the interest waived.

It's worth noting that there is nothing magic about either of these actions. You could easily contact the credit card companies yourself and do your own negotiation. For those that feel uncomfortable negotiating or who are out of their debt when talking about financial issues, however, a debt consolidation company may be the right call for them. In fact, some debt consolidation agencies have built up such a good reputation in the field that they have personal contacts at various credit card companies that make it easier for them to set up new terms and payment arrangements for you without having to go through a learning curve.

Using a debt consolidation company can be a legitimate way to try to pay off your credit card debts. Unfortunately, however, for every honest debt consolidation company in the market, there are dozens of scam consolidation agencies looking to part you from your money. When hiring one to work for you, just be sure that the company you are working with is both reputable and credible.

Get Control Of Your Finances

When you are still paying for stuff you bought years ago that you no longer own, it's time to get help getting out of debt!

Do you have piles and piles of final notices stored in your mailbox? Have you been hiding from the bill collector who bugs you with endless calls regardless the time and day? Are debt collectors making your life a living hell?

If your answer is Yes, then you are in dire need of help! And you need debt relief. You really don't have to live like this. You are not the first person to ever get into financial hot water and you will most assuredly not be the last. Piling up mountains of debt is very easy to do, and an entire industry has sprung up to help us eliminate it.

You have many debt relief choices. Doing nothing is among the choices that you can make but it isn't the best one. Here are three of the choices that you can make...besides doing nothing:

1. Talk to a Credit Counselor. You can find Consumer Credit Counselors both in the brick-and-mortar world and online. You will need to provide your counselor with a list of all of your debts as well as with information about your income. A credit counselor can set you up with a workable payment plan that will make you and your creditors happy. The harassing phone calls will stop, and so will all of the notices in your mailbox.

2. Investigate a debt consolidation loan. You can find institutions that make these loans both online as well as off line.

3. Consider the possibility of a home equity loan. You can find companies that make these kinds of loans both off line and online as well.

There are many ways to get debt relief.You need to spend a few hours searching for one that makes the most sense to you to get you out of debt.

Trusted Debt Counselor For Debt Consolidation

Undoubtedly a debt consolidation loan is the smartest move for persons that find themselves in debt. The advantage of just one monthly fixed payment, plus on a strict schedule allow them to budget accordingly, while the process of debit consolidation can be done directly by borrowers, it is advisable a debt counselor involved because through his-her expertise you will be able to decide the best course of action specifically for your situation.

In few words, what a trusted and reputable debt counselor does is figure out which debts are needed to be paid off first and after analyze your entire financial situation to contact creditors and debtors in order to get your debt settled, sooner than later debt counselor will back to you with an affordable repayment plan.

Nevertheless, there are several forms this plan can come up, for example; Debt Consolidation Loan, debt settlement program, debt management plan, debt relief reduction and elimination program, credit counseling service.

Keeping things as simple as possible, a debt consolidation take all your debts into a larger loan, this is far better that other options but usually require homeowner status. Now, debt settlement involves negotiation with debtors and creditors in order to get lower monthly payments that can go up to 50% reduction that your current ones.

The other options are variations of the one listed right above, for instance credit counseling services usually imply credit cards debt consolidation, negotiation of lower interest rates or transferring balances from high interest credit cards to a lower interest rate and no APR balance transfer credit card.

As you can see, there is no one but several options if you want to get your finance back to order, then by working with a trusted debt counselor for managing your debt consolidation program, you will get no just better results, you will become debt free in less time.

Hector Milla runs the Bad Credit Debt Consolidation website - where you can see his best rated debt consolidation service recommendation - and the Online Debt Management Tips resources center. Find free online debt consolidation tips and bad credit debt management advise respectively. Visit for further information.

Personal Debt Consolidation Loan Benefits

So you reached the breaking point on your credit obligations an a personal debt consolidation arise as the only alternative? Well, truth said, at time there are uncountable people facing the same situation, those worried about getting damaged their credit report or just needing a lower an unique monthly payment, it is precisely by a debt consolidation program that you can get the peace of mind you are searching for.

There are many advantages by applying for a personal debt consolidation loan.

Firstly, as you probably know credit card interest rates are higher than other financial options, interest can go as high as 36% on late payments, plus if you have several credit cards, payments you made every month under this item could take an important part of your monthly income, again with a personal debt consolidation loan you take all your credit card balances into a larger loan with a fixed interest rate and with a lower monthly payment.

Secondly, just a few words in order to point out the stress produced by creditor calls and letters, it is embarrassing, it is stressing and so on, the way around this situation is being proactive about it. Call your creditors, explain your situation and get some time while your debt consolidation or debt settlement program is in progress.

Thirdly, debt consolidation loans avoid you filling for bankruptcy, this is very drastic and in the most of the cases is simply no recommendable, you get your credit damaged for the next 7-10 years, this represent your commercial death, and even after these 7-10 years you will have to pay 2-3 times other people pay on interest.

All in all, a bad credit debt consolidation loan it is advisable, there are more benefits than downsides. However, specialized advise from a reputable debt consolidation company is priceless.

Hector Milla runs the Bad Credit Debt Consolidation website - where you can see his best rated debt consolidation service recommendation - and the Online Debt Management Tips resources center. Find free online debt consolidation tips and bad credit debt management advise respectively. Visit for further information.

Credit Card Debt Consolidation Services

Economic problems are all around and finance managing is becoming every day more difficult, are you one of the uncountable people struggling every month in order to pay your bills? If your credit card debts are so high that you pay more on interest than paying the original debt, then you should be considering a credit card debt consolidation program or debt settlement, there are certainly advantages by doing so and this article is intended to points out precisely the benefits of credit card debit consolidation services.

Firstly, by checking your credit card balance you can see that credit card interests can go as high as 36 per cent, this depends on the state were credit card provider did business but the average is as mentioned, so if you have not checked thoroughly the interest rate you are really paying it is time for doing your due diligence. If you have more than one credit card, see which one you are paying the highest interest rate and the credit card with the lower interest rate.

Now, the first move you should try is transfer the balance from the highest interest rate one to the cheaper interest credit card, if you are not able to do this, then go for the next strategy.

Secondly, there is no problem when you pay on time all your debts, problems arise when you do late payments, then interest rates are increased up to 30%, gone are times when you could call your creditors and get a late payment approved. Consequently, it is by doing your payments on the due date that you get your debt reduced, but people that cannot simply make payments on time need start thinking about a credit card debt consolidation or debt settlement as the only viable option, by reducing your monthly payments to one, unique and lower amount one, you get the benefit of a improved credit score, and then access to cheaper financial options, plus cash in your pocket instead of money paid on interest rates.

All in all, even paying a small fee to a credit card debt consolidation company could be lower that the current interests you pay because of your credit cards, then it is by comparing different credit card debt consolidation services that you can get a good deal, usually by using these services you can be debt free in a span of time 12-36 months.

Hector Milla runs the Credit Card Debt Consolidation website, where you can find his best rated credit card debt consolidation company recommendation, and the Bad Credit Debt Management resources center.

Find credit card debt consolidation tips and debt management advise for people with bad credit respectively. Visit for further information.

Improving Your Credit Score Through Unsecured Bad Credit Debt Consolidation

If you let your monthly dept payments stack up, and even several small amounts add up after a while, you’re going to find that you don’t have any money left over. It doesn't matter if your debt situation is the result of irresponsible spending, medical expenses or being in between jobs; there is still hope that you can get out of debt. One opportunity for relief comes in the form of unsecured bad credit debt consolidation.

Unless you’ve got a good credit score, you are probably paying a higher interest rate on your loans and credit cards. Keeping that in mind, there probably won’t be much difference between the interest rate on your unsecured bad credit debt consolidation package and your current debt. What will be different are the terms of your loan, like payback timeframes for instance. Consolidating your debt payments may actually cause you to pay more in the end than you would if you just continued making individual payments.

The advantage to using a unsecured bad credit debt consolidation loan is that your monthly payments will be lower. It should be easier to make the lower monthly payments, which should actually increase your credit score over time. Bad credit debt consolidations help credit companies too.  Even if you are paying a lower monthly total, you will be making more regular payments, which is what they like to see.

Not All Institutions Offer Consolidation Loans

Not all financial institutions offer unsecured bad credit debt consolidation loans. You’re going to need to get your loan from a more progressive lending company. There are many fees associated with this kind of loan, like an origination fee, which is added on the monthly amortization amount and is not paid immediately.

The interest rate you pay will cover the total amount of your loan, including the fees they charge you. So, while you may find that your monthly payments are lower, it will add up to a larger amount paid in the end.

If you would rather not increase the length of your loan, or pay additional interest, you can always try to negotiate lower payment terms with your creditors yourself. You’ll be able to save money and avoid getting a unsecured bad credit debt consolidation if you are able to successfully negotiate with your creditors on your own.

Most people get into debt because of overspending. Finding yourself in over your head is so easy nowadays with credit cards being so easy to get (not to talk of mortgages, car repayments, and also student loans). When you get into debt it’s hard to find a way out. Scott Stephen debt manual called The Ultimate Debt Guide is one way out. There are hundreds of other products out there that don't deliver on their promises. The Ultimate Debt Guide really opened your eyes to what is needed to do to become debt free fast.

State Tax Debt Relief: What the Media Has to Say

With the economy being as dismal as it has been lately, it is no wonder that the topic of state tax debt relief is one of such great importance. If you are a resident of the United States, you should be aware of the debt forgiveness tax relief law and others like it. For one by being more educated and being aware of state tax debt relief for the state that you live in, you will be able to save yourself as much money as possible.

We all dread having to go and get our taxes done every spring, but you don’t have to worry any more, not when you know what is going on in terms of your state tax debt relief laws. You may be eligible for one or more of these laws, and that would mean that you are going to save money on your taxes and probably get more back on your tax return as well.

Contact the IRS

If you ever need help with anything having to do with state tax debt relief or a similar topic, one of the best things that you can do is contact the IRS. Okay so the name may make you shrivel, but you should know that they have a great customer sales team that you can contact and who will be more than willing to help you out and answer any questions that you may have.

Learning about the different tax laws in your state is very important, and be aware that there are new laws coming out all the time. You don’t have to be completely into politics to watch out for these and keep yourself abreast of this sort of news, but remember that it will be more than worth it for you in the end of it all, when you are getting a larger chunk of change back on your tax return.

As you can see, the topic of state tax debt relief really does not have to be difficult, but there are many details involved with this topic that you want to be aware of.

Tips

Besides staying up to date on the different tax laws in your state, there are a few other tips that will be helpful as well. For one, you should be saving for retirement, and starting as early as possible is very important. You should be saving as early as twenty, so that you can retire comfortably.

Go here for more about Pay Off Debt Tips and Bad Credit Repair

The Right Answer for Debt Management

Legal Debt Settlement

First of all, know for a fact that there is no one-size-fits-all answer for debt management. There is, however, a specific debt management answer for each individual and each family.

Successful debt management is built upon two factors that we all have in common; income and out-go. The bottom line on a paycheck is income and so is any interest payments made to you or any other form of income that you receive.

The deductions from paychecks aren't going to be included when an individual or family makes a debt management plan. The out-go includes every penny that is spent, including the latte that is bought en route to the job and the cold drink that is added to the purchase when the car is refueled.

These expenses are not debt but since they do count as expenses they need to be included in your debt management plan.

When your expenses are minused from your income, what is left is called your disposable income. If the answer is zero or less than zero, you cannot afford to take on any additional debt.  You need to learn how to negotiate debts down with your creditors so you can increase your disposable income.

If there is a positive number, then this is where you get to make your own decisions about how that money will be spent.  But you should work on negotiating down credit card debt so you can reduce what you owe and get out of debt faster. Cutting overall expenditures will increase this number, and adding to overall expenditures will decrease this number.

If you find that you do have disposable income, then you and your family will need to make decisions based upon your lifestyle and your interests. Maybe a family vacation is what would make all of you happy, or maybe buying a house dog would do the trick. You might not be able to afford both and you will need to choose the things that will make you and your family happy.