Not everyone who files for bankruptcy is a deadbeat. Sometimes simple bad luck or poor choices is the overriding factor in piling on more debt than you can handle. A lost job; a severe illness; and yes, overspending can all lead you on the long road of too much debt that can ultimately leave you struggling to survive and a need to file bankruptcy in order to make a fresh start.

Think you may be headed toward bankruptcy? Look for these warning signs to get control over your finances before it’s too late:

Warning Sign #1: Too Much Credit Card Debt.
Credit cards debt is the biggest financial disease striking American households today. With the average credit card debt now toppling $10,000 or more, it’s no wonder that today’s consumer is feeling the pinch. No one should ever charge more than 40% of their current credit limit on any charge card, and if you’re only able to make the minimum payment on your current income, it’s time to put those credit cards away!

Warning Sign #2: Overusing Home Equity Lines of Credit.
It can be awfully tempting to use your home equity line of credit to finance that new furniture or a better car. Avoid the temptation. Remember, your house is at stake! Any type of credit that uses your home as collateral is dangerous. Use it only in severe emergencies or to cover unexpected maintenance costs and the occasional remodeling project. Something many people forget: those payments are linked to the current interest rate. If rates go up, so do your payments! Be sure that you can handle any increases that may come your way.

Warning Sign #3: Living Paycheck to Paycheck.
While it may not be possible to stop living form paycheck to paycheck, keep in mind that any bump in your financial road could send you crashing. The average American household has less than $1,000 in savings, leaving them open to financial ruin in the event of a sudden layoff, illness, or other major catastrophe. Do your best to live under your means in order to save for those unexpected emergencies that can devastate your finances.

Warning Sign #4: Foreclosures & Repossessions.
Let’s face it, if the bank is ready to foreclose on your house, and the repo man is about to which your car away, you’re already in serious financial trouble, and bankruptcy may be just around the corner. Now’s the time to get some help from a credit service to gain better control of your financial life and avoid more serious consequences.

Warning Sign #5: Co-Signing on a Loan.
It’s sad but true; bankruptcy often follows good intent. Be extremely careful when trying to help out someone else by co-signing on any type of loan. Be sure that you can handle those payments if your friend or relative fails to pay. It isn’t uncommon for co-signers for other’s mortgages and car loans to lose their own home when they are unable to repay a defaulted loan. Bankruptcy is nasty business. Be sure if it happens it’s because of your own mistakes and not someone else’s.

Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.

While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.

They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.

This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:

Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.

After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.

You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.

Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.

Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.

But it is not that easy so here are some factors to consider before committing yourself to a new house payment.

The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don’t have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.

The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.

So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.

Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don’t max yourself out on credit, living right up to the edge of your income.

If your income suddenly drops, you’ll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.

Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.

Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.

Although it may be difficult to find a bank to give you a mortgage it’s certainly not impossible. Banks want to make money and you may find one that’s willing to take the risk.

When you possess a small company’s as well as have by no means owned the business before then it will be reasonable if you wanted some bankruptcy assistance. There is not anything to be ashamed of; you might not know which part of bankruptcy to file for so that we can help you.

One of the initial questions that are to be answered is whether the business is a partnership or else a sole proprietorship? If you possess a corporation there are also limited liabilities for the companies as well as partnerships that are very legal entities that are divide from their partners. In such cases you can file the Chapter 7 or else Chapter 11.

If you have the partners as well as you choose the Chapter 7 then you must know that in the Chapter 7 case the trustee that is appointed by court that can sue general partners if partnership’s assets are not sufficient to pay for entire debt. The partners can also be sued by the well funded trustee prosecute on the behalf of the business creditors. If you contain a proprietorship then they are very much just the extension of owner plus a Chapter 7, Chapter 11 or else a Chapter 13 may also apply.

Chapter 7 is equivalent to the liquidation as well as Chapters 11 and 13 are concerning the reorganization. How can you make the purpose on which way to file? You need to look at the facts as well as see which of the avenue suits business better. For instance, you chose Chapter 7 then one time when your assets are left can you still run your business, most probably not. So if you think you have to give up the business after filing Chapter 7, you would be wrong.

If you opt to file Chapter 7 plus you have the business that doesn’t need much of the start up capital then there is no such reason why you cannot resume that business however you can’t resume that particular business unless your bankruptcy is discharge. The Chapter 7 is suitable when you feel that business has no such future at all. When it has the fair amount of the assets or else qualities which can’t be done once more and finally if you feel that the liability is way much that are trying to rebuild that would be the waste of time, then this Chapter 7 is for you.

If you want the business back on all its feet as well as give it the chance to overcome the bankruptcy at that time reorganization of the Chapters 11 and 13 will be suitable. During filing of the Chapter 11 the court appointed the trustee that will sit down as well as figure out the reorganization plan plus if it is possible they will take t recommendation to the judge this is the way to go on but if trustee cannot make the connection for the reorganization then they can make the recommendation Chapter 7 be implemented.

Understand bankruptcy before you need it and you may be able to avoid it. You may also be more confident about getting through it if you need to.

Cost/Benefit analysis is thought of as a Business Procedure, but you are in the business of remaining solvent if possible. Your Family and Yourself could have no more critical business to attend to.

LET’S START AT HOME

What is your Day? What do you spend your time doing?
As the grip of debt grows tighter, time is what you have to spend; some days it may be all you have to spend. Roll with it. Panic doesn’t solve anything.

The basics of course are:

* Water

* Food

* Shelter.

We take water for granted, but that’s a different subject. Once your children (family) are fed and sheltered, in a sense everything after that is extra.

Believe it or not one of the next priorities is ‘entertainment’, not TV, Dancing, Big Screen type entertainment. I mean, what do you do with your time?

MONEY vs TIME

Most of our society is trained that entertainment means, ‘Where should we spend our Money’. The kind of entertainment I mean is ‘How should we spend our TIME?’ Those of you with small children realize that sometimes it doesn’t matter how much you spend, sometimes it just ain’t ‘entertaining’ to the audience.

Sit down with everyone in your Family that ‘spends’ money and discuss the daily expenditures. Write them down. I know we’ve all heard that before, ‘Write down where ever penny goes’. It really will open your eyes to corners you can cut. Prioritize these possible reductions.

Analyze your day, making decisions as to ‘necessity’, ‘entertainment value’ and ‘cost per hour of entertainment’. Things like ‘Should we give up the daily and weekend paper? That $12 a month could be spent better.’ But when considered as the hours you spend reading the paper, Sunday Comics, Editorials etc, is $12 a month expensive? You’ve done something you enjoy for Hours a week.

Is it worth Buying DVD’s? Again, I don’t know about you, but I don’t buy a DVD or CD unless it’s something I know I’ll watch or listen to many times. I consider a Classic Movie, especially with ‘Special Features’ to be a very enjoyable use of time, every time I watch it.

Is it worth paying for Cable TV or Satellite? A good internet connection is something I consider a basic necessity. I use DSL and get my phone bill from the same company. Depending on the area in which you live, the combination may be Cable + Internet, or Dish + whatever, you will make that determination as part of the Plan you are going to formulate before you finish this document. My Cable system uses a tier system and it is quite a financial jump to go to a higher tier to get 1 or 2 channels. On the other hand they also offer Hi-Speed Internet.

For the sake of educating our children I put quite a bit of ‘weight’ on access to a good internet connection. We can’t go to the Library 5 times a day. Admittedly there are many concerns with the internet as well as TV, but in my estimation more selective value can be garnered from the internet than is available on TV.

As far as the rest of the offerings from TV and the ‘Entertainment Media’ which lately includes the shows I remember that were known as ‘News’. Years ago they were labeled a ‘wasteland’, now wasted land maybe. If you look at our ‘Post Modern’ cycle of ‘Marketing that which they all need’, (Because we told them so), you may notice that ALL TV Programs are selling something, even without the 55 minutes per hour of commercials, the ‘show’ is selling something. Watch closely, if you dare to watch. The subtle persuasive techniques can have you spending in a flash, almost whether you want to or not.

SOME CHOICES

If your decision may include bankruptcy, more education is in order. Because people are usually not aware of the differences between chapter 13 and chapter 7, they are unsure of which bankruptcy chapter to file.

Bankruptcy and bad credit can make you think your ability to get a car loan will be an impossible task. But it does not have to be. Also, any new loans including a car loan will help you to build and reestablish your credit and credit history.

Most finance companies will not deal with you if you are in the middle of bankruptcy, but they will when it is finalized as you can then legally take on debt and reestablish yourself. Bad credit should not mean no credit. You can still get a good car loan and even a reasonable or good rate and payment. Here are some excellent tips and pointers to help you get the best car loan and terms possible regardless of your credit history.

First, get a copy of your credit report.

This is a crucial step as your credit report may and probably will contain some erroneous and derogatory information. It is a known fact that over 90 percent of credit reports contain some sort of error or incorrect information. This can range from wrong contact or loan info to derogatory debt info that should be removed as it is older than 7 years.

The rule is that most derogatory credit and debt reporting can only stay on your credit report for 7 years (a bankruptcy is 10 years). Many collection companies and other creditors abuse this law by relisting bad credit with different loan numbers and such. This is actually illegal and a violation of the Fair Debt Reporting Act. If you find any fraudulent reporting like this hire an attorney and sue the violating company.

Basically, anything that does not belong on your credit file can be investigated by inquiring with the credit bureaus (Trans Union, Equifax and Experian). When an inquiry is opened, they must contact the original creditor and receive proof that the debt is valid. If they do not receive proof within 30 days the disputed information must be removed. The credit bureau in question will then send you a free, corrected credit file. Note, this dispute process is not to be abused for knowingly valid debts.

By correcting the data in your credit report you can only improve your credit rating. You are also entitled to add a small entry to explain any valid derogatory entry. For instance if it was caused by a unexpected illness, automotive accident by an un-insured motorist or something that was not your fault. Creditors may take this info into account and give you a better rate or terms or extend credit where they normally would not.

Make friends with the special finance manager at your local car dealership that handles bad credit.

This can only help as many times a loan is made or determined on the finance managers personal opinions. They can put in a good word for you or a personal favor or recommendation. Especially if they are at a large dealership and they do a lot of loans. They may be able to throw it in with a package of loans and get you approved or get you a better rate. Do not discount this, I have personally seen this happen.

The special finance manager will also determine how much money you can put down and what payments you can afford. If you are friends with them you will most likely get a much better deal, car and payments.

Look online before you sign the dotted line.

There are numerous online finance companies and websites that may give you better terms and or rate, but you will never know if you do not check. Just look up the keywords bad credit car loan on Google or Yahoo and you will find plenty of them. Find a few and see what kinds of offers or terms you will get. Do not be surprised if you are approved, but for a newer car. Many finance companies will not do loans on cars older than 5 or 7 years or with prices below $5,000.

Buy here pay here.

If you wish to buy a car older than the range most companies will finance, under $5,000, or your credit will not let you buy at a normal dealership (very rare), then there is one last resort the BHPH (Buy Here Pay Here dealer). These car dealers finance the car themselves and will usually expect weekly payments. Do not expect your car loan with them to be reported on your credit report so it will probably not help your credit. If you miss a payment, they will tow off or repo your car.

Then you will have to pay extra repo fees and all payments to get you up to date to get the vehicle back. BHPH is kind of like legalized loan sharking, but for some it is an acceptable or only alternative to riding the bus or walking. Expect high interest rates (whatever the state maximum is) and weekly payments of between $50 and $100 with a sizeable down payment (usually around $2,000 or so depending on the year and price of the car being loaned).

Now, once you have a car loan, do not mess up and miss or make late payments. Your goal is to correct the mistakes of your past and build good credit. If you keep making on time payments and continue to build your credit, with 1 to 2 years you will improve your credit and may even be able to do things like purchase a house or condo and qualify for better rates and terms.

After the crisis of bad credit and filing for bankruptcy, perhaps you may feel intimidated of starting up new transactions. For instance, you may feel disheartened about purchasing a new home because of your bad credit history. However, even if you have a record of bankruptcy in your credit report, there is still a chance to make a new start.

Today, there are mortgage companies who are willing to grant home loan approvals for those who filed for bankruptcy in the past. Tough competition among lending companies in the market drives these lenders to give special home loan packages for those who have been through bankruptcy. As long you have been discharged from your debts, you can go right ahead and submit that home loan application.

Will Lenders Accept Your Application?

Lenders are not merely taking chances. After all, your home property will be used as a security for your loan so there’s really not much risk involved. If you’re done filing Chapter 11 or Chapter 7 of bankruptcy, you can call a lending company and ask about your chances of getting an approval.

While other lenders require 2 years of interval after your bankruptcy has been discharged, other lenders also grant home loan approvals after just one day of discharge. If you have been submitting your payments religiously and all your payments are reported to the major credit bureaus, you should have no problem getting a loan approval.

What About the Down Payment?

You might also be required to give at least 3 to 5% of down payment in order to get an approval. If you do not have the money to use as down payment perhaps you can borrow from a friend or a relative. However, if the money you will put down is borrowed, you should disclose this to your lender before closing. It is important to declare to your lender where the money is coming from since not doing so can be counted as defrauding your lender.

Another option can be programs such as Neighborhood Gold or the Nehemiah. These down payment assistance programs help you get the loan even if you don’t have enough cash to put down. Use the internet to search about “down payment assistance” programs.

Starting New

Once your home loan is granted, don’t forget that you’ll be paying monthly payments for your mortgage. This is your chance to rebuild your credit history. If your reason for filing bankruptcy in the past were circumstances beyond your control such as illness, loss of job, death in the family, calamities and other unfortunate events, then you may not accountable for bad credit.

However, if the reason behind your bankruptcy is due to unpaid debts because of irresponsible management of your finances, then you might have already learned your lesson. Keeping up with your monthly payments is the best way to avoid being caught in bad debt. Live according to your means and do not waste time in making adjustments with your lifestyle if you see the need to change. This is your chance to own a home and to regain your reputation.

Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.

While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.

They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.

This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:

Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.

After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.

You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.

Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.

Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.

But it is not that easy so here are some factors to consider before committing yourself to a new house payment.

The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don’t have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.

The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.

So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.

Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don’t max yourself out on credit, living right up to the edge of your income.

If your income suddenly drops, you’ll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.

Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.

Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.

Although it may be difficult to find a bank to give you a mortgage it’s certainly not impossible. Banks want to make money and you may find one that’s willing to take the risk.

Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.

While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.

They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.

This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:

Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.

After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.

You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.

Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.

Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.

But it is not that easy so here are some factors to consider before committing yourself to a new house payment.

The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don’t have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.

The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.

So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.

Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don’t max yourself out on credit, living right up to the edge of your income.

If your income suddenly drops, you’ll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.

Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.

Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.

Although it may be difficult to find a bank to give you a mortgage it’s certainly not impossible. Banks want to make money and you may find one that’s willing to take the risk.