Pre bankruptcy credit counseling

The benifits of credit counseling online

Our world is going through a rough financial situation. We have hit an economical trauma and each of us has been affected in some form or fashion. Unfortunately, there are many people that may have to file bankruptcy. They may feel as though they are drowning in debt, and do not have anywhere to turn for support. They hear the commercials for bankruptcy, and think that this is the answer to their situation. There are many opportunities available for pre bankruptcy credit counseling. This can help you to see the light at the end of the tunnel.

The are numerous companies available that can help individuals not file bankruptcy. There goal is to help and to ensure that you see other options that are obtainable. Debt relief companies can help to negotiate your issues for you directly with your creditors. They can help you by getting you lower monthly payments, lower interest rates, and consolidations.

Organizations can help people to make settlements with their accounts, and protect them from any negative actions from their collectors. There are also many services available, some even offered for free pre bankruptcy credit counseling. A counselor can go over your debt very thoroughly, and come up with solutions and programs that can help your current situation.

Get credit card after bankruptcy

Now if you do decide that the best thing for you to do is to file bankruptcy, then there are others things that you can do immediately after to attempt to rectify the situation. People want to file bankruptcy for the chance to start over with a clean slate. If your credit is changed due to the bankruptcy, then you would want to start over and rebuild your credit. One way to do this is by getting a credit card after you have filed bankruptcy. Getting a good credit card, with great programs can definitely start you on your way to starting over and cleaning up your credit for good!

How to get a car loan with bad credit

About chapter 7 bankruptcy exemptions

Understanding chapter 7 bankruptcy exemptions

To begin with, it is important to understand that Chapter 7 bankruptcy exemptions are essentially a list of assets which a debtor is allowed to “exempt” (keep) in his or her bankruptcy case. Assets that are not exempt may be liquidated during the Chapter 7 bankruptcy process for the benefit of the debtor’s unsecured creditors.  Chapter 7 bankruptcy exemptions vary from state to state. In some states, Chapter 7 debtors have the option of choosing either their state exemptions or federal bankruptcy exemptions. A bankruptcy attorney in your state will be able to assist you in determining which Chapter 7 bankruptcy exemptions are available to you.

Chapter 7 bankruptcy property exemptions

When contemplating filing a Chapter 7 bankruptcy, it is important that you compile a list of your personal property and assets. Personal property includes clothing, jewelry, electronics, appliances, furniture, tools, etc. With most state exemptions, individuals are allotted a general personal property exemption as well as specific exemptions for such things as jewelry, automobiles, life insurance, and their homestead if applicable. In order to calculate the equity of an asset for exemption purposes, the fair market value of the asset will need to be determined first. Secondly, any liens will need to be subtracted from this value in order to determine if the asset has any liquidable value. If the liquidable value of the asset is more than the allowed exemption, the debtor will either have to surrender the asset to the trustee or buy it back, having to pay the overage amount of the exemption.

When an individual files for Chapter 7 bankruptcy, he or she will file a schedule (a list) of all exempted property along with its market value and exempt value. This will allow the Chapter 7 Bankruptcy Trustee to see if there are any assets to liquidate. In addition, creditors may object to a debtor’s exemptions if they feel that the asset should not be allowed to be exempt. However, the burden of proof is on the creditor as to whether or not the exemption should be allowed.

I need to file bankruptcy. What type of bankruptcy should I file

What types of bankruptcy can an individual file

Everyone experiences a financial hardship at one time or another. This is what happens when you’re spouse needs to file bankruptcy? There are steps that must be taken to attain the financial protection being sought.

Types of bankruptcies for individuals

Two types of bankruptcies can be filed by individuals: Chapter 7 and Chapter 13. Chapter 7 is a liquidation of assets to pay creditors and offers relief from any other debts that can be included in the bankruptcy. A Chapter 13 bankruptcy is a reorganization of debt. The debtor creates a payment plan that lasts for a 3-5 year period. Once completed, all creditors are considered paid. It is important to note, that whichever type chosen, the bankruptcy remains on your credit report for a period of 7-10 years, though it’s impact lessens with time.

Determining which type of bankruptcy to file depends on the financial situation of the filer. For example, if the filer is unemployed and cannot afford to pay his creditors, then a Chapter 7 might be his only recourse. But, if the filer is simply behind in payments and needs special arrangements to pay his debts, then a Chapter 13 is a plausible option. Another consideration is a filer’s home. If he wishes to keep his home and can still afford the mortgage payments, a Chapter 13 plan is the only option, because in a Chapter 7, the house is almost always sold to pay creditors.

Collection of Information

The first thing a potential bankruptcy filer needs is a list of everything he owes. The easiest way to do this is to attain a copy of the filer’s credit report. Everyone is entitled to one free report each year, so contact the three main reporting agencies: Experian, TransUnion and Exqifax and request a free report from each of them. A filer can also use a credit report website such as to download a comprehensive credit report.

Once the report is in hand, make a list of all the debts that should be included in the bankruptcy. Some debts that you can include in a bankruptcy are late utility payments, late mortgage payments, car notes, medical bills and credit card accounts. Include all debt — even the accounts that are current. You should also examine any recent letters or notices you have received from creditors, as depending on how recent the debt, it might not be reported on the credit report yet.

Take this report to a bankruptcy attorney and explain your situation. Once he has examined your documents and understands your financial situation, he will be able to give you sound advice on how to proceed, including which type of bankruptcy case to file. Most attorneys that handle bankruptcy cases offer a free consultation and will set up payment arrangements for their fees. You can file a bankruptcy case without an attorney, but this would be ill-advised, since many cases can be complicated, and one mis-step can get the bankruptcy case thrown out of court.

Read, “Understanding chapter 7 bankruptcy exemptions