Bankruptcy Interest Increases As Deadline Approaches
Congress recently passed sweeping legislation that will significantly reform American bankruptcy law. Designed to eliminate the "convenience bankruptcy" of compulsive gamblers and the financially irresponsible, this legislation will make it more difficult for those seeking bankruptcy protection from the courts to have their debts relieved.
Under current law, people who have debts that they cannot repay may file under Chapter 7 of the Federal bankruptcy code, which allows nearly all debts to be wiped away. The new legislation, which takes effect in October, 2005, will require most people filing for bankruptcy to file under Chapter 13 instead. Chapter 13 requires that a repayment plan be established, usually over a period of five years. Chapter 7 filings will still be an option, but the new legislation includes a "means test" that examines the filer's income to determine whether Chapter 7 or Chapter 13 is appropriate.
With the new law set to take effect, the number of people inquiring about Chapter 7 bankruptcy filing has increased dramatically. Attorneys who specialize in bankruptcy law have reported that their phones are ringing constantly, as people who are in financial trouble are wondering if they should file for bankruptcy immediately. While this is good for business, many attorneys are a bit concerned about the sudden rush to file for bankruptcy.
While filing for bankruptcy may be the only option for some people, it is not something to undertake in haste. Bankruptcy stays on your credit report for a minimum of ten years, and can your ability to obtain auto loans, mortgages or even jobs in the future, even if you have established financial stability. Bankruptcy should not be entered into lightly, and should be considered only as a last resort. Many creditors will work with those who owe them money, and it may be possible to establish a repayment plan without filing for bankruptcy.
If you feel that your financial situation is serious enough that bankruptcy is a possible option for you, you may wish to speak to a credit counselor or bankruptcy attorney now. There are still five months remaining before the new legislation takes effect; this should provide most people with ample time to examine their options carefully. What you should not do is rush into filing a bankruptcy petition that may turn out not to be necessary. A rush to beat a five-month deadline may haunt you for ten years or more, and that is the last thing you want.
ęCopyright 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.net, a site devoted to information regarding home equity loans.
Benefits And Drawbacks Of Bankruptcy
Outlined below are some of the benefits and drawbacks of bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice.There is more to bankruptcy than as a way of finally putting an end to harassing debt collectors and creditors. One big side effect of bankruptcy being that your life is likely to be subjected to intense scrutiny.These are some of the benefits of bankruptcy:Relieves the stress caused by dealing with numerous creditors.Once a bankruptcy order is made, a third party takes over the administration, decision making and payment process of the debts.Creditors forced to recognise that they must accept less money than is owed.Debtors typically pay less with a bankruptcy order...(related: Debt Relief)
Is There Any Way To Get Out Of Debt?
In this era where we are bombarded daily with commercials on television, radio, billboards, through email, not to forget the flyers slipped under the car's wiper blades while shopping at the mall, it's no surprise that so many of us find ourselves endlessly in debt to the services and products offered by others. How can we refuse, when we're baited with the juicy orange carrot of '0% APR' up to a certain amount or for a specified time, or 'no money d...(related: Debt Relief)
Debt Negotiation And Debt Settlement
Debt negotiation and settlement can give you a drastic reduction in the amount of debt you owe and allow you to repay your debts in a much shorter time. Resolving your debts is important t...(related: Debt Relief)
What Is Bankruptcy?
Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice.Bankruptcy is seen as the last resort. Bankruptcy is perceived to be the only way to escape the ever-constant demands for payment by bill collectors and credit companies alike.Bankruptcy is not something that should be rushed in to. Certainly there are times when it can be very useful, but there are other times when declaring bankruptcy would be a big mistake.The purpose of bankruptcy is to...(related: Debt Relief)
Corporate Debt Management ? Perspective On The Why
Entrepreneurs have a tough time in their formative years. They try too many things to get a foothold on this competitive business climate, and that too they try them too soon. When they enter into new fields that have great promise and bet on new products they run the risk of costly failures. New product launches are costly and sometimes may take time to click. Risk is one factor which keeps the Businesses spinning new concepts and makes money out of it. It is this risk that keeps the uninitiated away. If you can't risk and make some bets in business then it is no field for you. But sometimes folks go a little far on investing more and more in a failure with hopes that one day they may click. It is the greate...(related: Debt Relief)
The Road To Debt Relief
Living with debt is not something someone hopes for, but it happens and it usually becomes far more severe than it should before something is done to eliminate it. Once many individuals realize they have a problem with debt, they are too embarrassed to ask for help so they let themselves dive further into debt. Being embarrassment and ashamed are regular emotions many encounter when they realize they are in debt however you are not alone so you shouldn't feel embarrassed.Everyday people get into debt, but everyday people are looking for ways to debt relief, whether it is through self-help, credit counseling, dept management programs, or...(related: Debt Relief)
Bankruptcy: What The New Law Means To You
On April 20 of this year, President Bush signed a bankruptcy reform law. When this law goes into effect in October of this year, it will be much more difficult for Americans to use Chapter 7 bankruptcy to get a fresh start on their financial lives.Under current law, you can choose to file either a Chapter 7 or Chapter 13 Bankruptcy. In a Chapter 7 proceeding, you are allowed to keep your exempt property, such as much of the equity in your home. Most of your other debts, such as money owed on credit cards, are discharged.In comparison, a Chapter 13 Bankruptcy is a reorganization bankruptcy. In this type of proceeding you agree to pay off your debts over a period of three to five years.The result of the n...(related: Debt Relief)
How To Reduce Your Debt In 5 Easy Steps
If you have incurred substantial personal debt, consider these options: budgeting, debt consolidation, credit counselling from a reputable organization and working with your creditors. You will need to choose a debt reduction method that will work best for you? The method you use will depend on your level of debt, how much spare money you have, your level of discipline, and how quickly you want to get out of debt.1. REALISTIC BUDGETINGThe first step towards taking control of your financial situation is to do a realistic assessment of your income and expenditure. Work out how much you earn (your total income) and write this figure down. Then total your expenses. Thi...(related: Debt Relief)
Fast Track Out Of Debt
You go to the mail box and scan - a couple fliers (nah), your magazine subscription (yes!) and bills (groan). Every month the bills show up and as you sigh and take out your check book you wonder if you will ever be free.Each month yo...(related: Debt Relief)