| |
| |
|
|
|
| |
|
| ||
Personal Bankruptcy - If Its Unavoidable, File Now
The Bankruptcy Abuse and Consumer Protection Act, signed into law by President Bush last April, promises changes to Federal bankruptcy law that have been long sought by the lending industry. The bill promises sweeping changes to Federal law, and will make it much harder for the average consumer in financial trouble to have their debts wiped out by filing for bankruptcy. Recent trends suggest that those considering a bankruptcy filing should do so now, as the line to do so is already getting rather long. The bill will make it harder for the average consumer to file under Chapter 7 of the Federal code, which allows the courts to wipe away consumer debt and give the debtor a fresh start. Filings after the October 15 deadline will be subject to a means test and those that pass a rather generous income gauge will have to file under the more strenuous Chapter 13, which requires a repayment plan and the assistance of an attorney. Indications are that with the deadline looming, bankruptcy filings are not only higher than they were last year, but they are also higher than anticipated. Nationwide, filings are 20-25% higher than last year, and some bankruptcy attorneys say that their business has nearly doubled. Complicating matters is another law, passed in 2003, that requires credit card companies to establish a payment schedule that allows consumers to repay their debts in a "reasonable" amount of time. Since the beginning of this year, the major credit card companies have doubled their minimum payments from 2% of the balance to 4% of the balance. For the average household with $10,000 in credit card debt, this doubles the minimum monthly payment from $200 to $400, an increase that many consumers cannot afford. The dramatic increase in bankruptcy filings has overwhelmed bankruptcy attorneys, who will face the additional burden of being liable for false information filed by their clients once the new law takes effect. This additional pending liability, combined with the additional workload, has prompted many attorneys to raise their fees by an average of nearly 20% over the same time last year. What does this mean for those with problem debt? The deadline for filing under existing law remains October 14, 2005. After that, bankruptcy filings will be more complicated and expensive. The courts and law offices are already becoming clogged with bankruptcy cases. Anyone who may be considering filing for bankruptcy to overcome his or her problem debt should do so now. Waiting even another day could be too late. ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity lending.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Can You Escape the Trap of Ever Growing Debt? It's difficult not to be concerned when facing numbers like these:43% of U.S. Is My Credit Card Debt A Problem? For most Americans, credit card debt is a dangerous and growing problem. The average American family has more than $8000. Creating A Realistic Budget Budgeting -- ooh, what a scary word! If you want to frighten someone whose finances are out of control, suggest that they tally up their expenses on a piece of paper. We all understand the value of such an exercise, but when it comes to the practicality of putting a budget together, we get cold feet. Save Money When Going Out It seems as though whenever we go out for the night, it costs much more than we originally intended to spend. Having a 'night on the town' shouldn't cost you a whole weeks salary. Credit Repair? Its All Up to You Log onto to a search engine such as google.com and type in the term credit repair. Tips For Saving Money Still living from pay to pay? Or envying those great wealth accumulators and wondering how they did it? Every month you make a resolution of saving some dollars from your paycheck, but only end up breaking it. Looking for some magic formula for saving money?Well, there’s no magic formula—only some simple rules to be followed with determination and persistence. How to Negotiate Debt Settlements Knowing how to negotiate debt settlements is the key to securing your financial future. Debt negotiation is the process where in you will contact your creditors and will appeal to them with an offer to pay off the amount you owe in easier installments that decrease the principal quicker. Credit Counseling - Signs That You May Need Help Credit counseling is a viable option for those who are feeling the stress of being overwhelmed by debt. Credit counseling primarily offers assistance with working out a credit and debt repayment plan for an individual to gain control of their finances by creating a structured budget for an individual to follow. Debt Recovery Can be Easy OK, so you are up to your head in debt. You are stressed out, it is now affecting the way you function and absorbing most of your daily thoughts. Bankruptcy - Is It The Right Choice For You? Bankruptcy is one of the tougher choices we as adults face in today's society where it is the norm to be in debt, albeit some more so than others. Credit card offers materialize whether you are looking for credit or not. How Do You Spell Debt Relief? Of all the problems possible in a marriage, finances cause the most marital discord. Many singles consider finances to be their most worrisome issue. The Bankruptcy Code Acknowledges the Validity of the Homestead Exemption Many times the subject of bankruptcy seems baffling in its complexity. Actually the basic principals of bankruptcy are fairly simple even though the federal statuses on bankruptcy are extensive. Bankruptcy - The Easy Option? Incredibly, since the changes in the bankruptcy law in April 2004, debtors are more likely to petition for their own bankruptcy rather than their creditors! You would think that most people who have been threatened with the prospect of being made Bankrupt would be riddled with fear of the possibility. It is more widely referred to as the "Big B" rather than the dreaded word itself. Bankruptcy, Is It A Way Out Negotiations with creditors have failed. Repossession is imminent and foreclosure proceedings have begun. Debt Consolidation and Personal Finances: Learn the Truth! An inability to manage credit, growing debt and bankruptcy are all major problems today. On an average day, over 8,000 people file bankruptcy in the United States alone. Ten Ways to Get Out of Debt 1) Use your AssetsIf you have assets with some significant equity, such as a home or a car you may be able to use these to get control of your debt. For example, you could get a loan on your home sufficient to pay off your debts. Credit Repair - Understanding The Basics What is Credit?Credit means that you are using someone else's money to pay for things. It also means that you are making a promise to repay the money to the person or company that loaned you the money. Think for a Change I'm not sure where it originated, but I've heard it repeated time and time again: Insanity is doing the same thing over and over and expecting different results. As much sense as that statement makes, we often find ourselves addressing the same issue with solutions that are little more than rearranged expressions of previously failed solutions. What is Bankruptcy? Personal bankruptcy is a legal way to give people with overwhelming debt a fresh financial start. However, it is important to realize that certain forms of debt, such as student loans, are not forgiven through the bankruptcy process. Debt Settlement : What You Need To Know Debt Settlement companies work with your creditors to help you reduce your unsecured debts though arbitration and negations. The important thing to realize about Debt Settlement is that it is a different type of program than Consumer Credit Counseling or Debt Reduction.
|
| home | site map |
| Copyright ©2009 - All Rights Reserved. Hosted by Del Information Services. |
