Bankruptcy > Bankruptcy and Your Credit

Bankruptcy and Your Credit

by: T.Going

Bankruptcy and credit are directly linked to one another.
Credit is how many people run into trouble with their finances, and ironically how they remedy their financial problems at the same time.
Credit availability and the encompassing pressure to maintain a good credit ranking will often allow lenders to form prejudices.
Many times this can make be the difference between receiving, or being denied, a large loan.

When someone goes bankrupt several things take place.
By filing for bankruptcy you acknowledge that you are not able to pay your debts and must be relieved from having to pay off your unsecured debts.
Unfortunately, this relief from debt comes at a price.
Declaring you are bankrupt makes you at risk to creditors.
You are less likely to receive extended credit when you need it, and on top of that you will be charged extremely high interest rates.

Fortunately one of the best things about bankruptcy is its ability to restore your credit rating.
By opening a high interest rate credit card and making regular payments for the first few years after bankruptcy, you will demonstrate that you are willing and able to make payments in a timely fashion.
Eventually your rating will rise and you can have credit available next time you need it.
This process can be somewhat long, but for those who are willing to work towards the ultimate goal of having good credit, it can be well worth it.

About The Author

T.Going

To learn more about understanding bankruptcy please visit the San Diego Bankruptcy Lawyers Chang and Diamond, APC at http://www.thebklawyers.com.
This article may be freely reprinted as long as this resource box and all links stay intact.

The Chapter 13 Meeting of Creditors - What to Expect

The Chapter 13 Meeting of Creditors - What to Expect

by: Leon H. Rountree III

Have you recently filed Chapter 13 Bankruptcy? Do you have an upcoming Meeting of Creditors hearing? Many Chapter 13 debtors get a little nervous about the meeting since they are not exactly sure what to expect. So, I decided to take some notes on exactly what happens during the meeting for the benefit of those who have an upcoming meeting. Of course, I knew what was going to happen since I've done these hearings before for my clients, but I wanted to note the exact words this hearing officer (trustee) was using and the exact questions she was asking. Sometimes, clients have visions that creditors are going to sit there and hammer them all day with questions or something. This is just not the case, in my experience. Let's start with some basics.

What is the Meeting of Creditors?

The Meeting of Creditors is a hearing that is held 20 to 40 days after the bankruptcy...

The Chapter 13 Meeting of Creditors - What to Expect

Bankruptcy > The Chapter 13 Meeting of Creditors - What to Expect

Tougher Bankruptcy Laws Take Effect October 2005

Tougher Bankruptcy Laws Take Effect October 2005

by: James Dimmitt

In just a few short weeks, President Bush?s Bankruptcy Abuse Prevention and Consumer Protection Act will take effect. In a nutshell, the new law, which goes into effect on October 17, 2005, makes it more difficult to cancel your debts under Chapter 7 Bankruptcy protection. Instead, consumers will find themselves having to file for Chapter 13 Bankruptcy protection and paying back their creditors over a five year period.

Here?s a look into some of the major changes that will affect consumers choosing to file for bankruptcy after the new law goes into effect -

Qualifying - Chapter 7 or Chapter 13?

To be able to qualify for protection under Chapter 7 bankruptcy, consumers will have to face a means test. The means test determines if your household falls above or below the median income in the state where you reside. Those whose total is greater than the state median income...

Tougher Bankruptcy Laws Take Effect October 2005

Bankruptcy > Tougher Bankruptcy Laws Take Effect October 2005

Tougher Bankruptcy Laws Take Effect October 2005

Tougher Bankruptcy Laws Take Effect October 2005

by: James Dimmitt

Here?s a look into some of the major changes that will affect consumers choosing to file for bankruptcy after the new law goes into effect -

Qualifying - Chapter 7 or Chapter 13?

Tougher Bankruptcy Laws Take Effect October 2005

Bankruptcy > Tougher Bankruptcy Laws Take Effect October 2005

Credit After Bankruptcy Is Not Impossible

Credit After Bankruptcy Is Not Impossible

by: Jakob Jelling

If you are going to file for bankruptcy, it is true that you will not have very good credit after bankruptcy. However, this does not mean that you will never be able to get loans, and it certainly doesn't mean that you will never have a good credit history again. While it is true that there will be a short period of time during which it will be exceptionally hard to get credit, it is not true that you will have to wait for an entire ten years to get credit after bankruptcy.

For instance, if you do not have a lot of debt on your credit card, or if you have no debt on it at all, you may be able to keep your card. If you do not owe any money at all, then you do not even have to inform your credit card company about the bankruptcy - however, if they do find out that you are going through bankruptcy proceedings it is always possible that they could cancel your card anyway, just to make sure...

Credit After Bankruptcy Is Not Impossible

Bankruptcy > Credit After Bankruptcy Is Not Impossible

The Facts About Personal Bankruptcy

The Facts About Personal Bankruptcy

by: Jay Stockman

The thought of personal bankruptcy is very frightening, however over 5.4 per 1,000 people have filed for bankruptcy last year, and this rate has been growing at an average of nearly 7 percent. Researchers have determined that the primary cause of personal bankruptcy is uncontrollable levels of consumer debt oftentimes coupled with an unexpected event, such as a major medical expense not covered by insurance, the loss of a job, divorce or death of a spouse. According to economists? surveys, the classic bankruptcy filer is a blue collar, high school graduate who is the head of a household in the lower middle-income class with heavy use of credit. In order to protect both debtor, and creditor, laws were enacted to provide equal, and fair measures to satisfy the objectives of all parties. The primary purpose of the laws of bankruptcy are: (1) to give an honest debtor a fresh start in life by relieving...

The Facts About Personal Bankruptcy

Bankruptcy > The Facts About Personal Bankruptcy