March, 2009

...now browsing by month

 

What Is A Chapter 13 Bankruptcy?

Tuesday, March 31st, 2009

Chapter 13 bankruptcy forms

A Chapter 13 bankruptcy is the specific type of legal proceeding that is granted under Federal statues to provide a repayment program for debts that are owed. Under Chapter 13 bankruptcy, a three-year or a five-year repayment plan is created for specific creditors according to the rules governing bankruptcy and through agreement by all parties involved. The arrangements are all overseen by a trustee who is appointed by the Federal bankruptcy court.

When someone files a Chapter 13, it means that they are not able to repay their debt obligations as they originally agreed to do when the debt was taken on. Chapter 13 bankruptcy law allows for these debts to be reorganized for the purpose of repayment. This is different than a Chapter 7 bankruptcy, in which the debts are discharged immediately instead of being set up with a repayment schedule.

In most cases, a Chapter 13 type of bankruptcy has a repayment plan in which the debtor makes monthly, bimonthly or weekly payments to the trustee. The trustee then provides bankruptcy help by taking care of properly dispersing the payments to the creditors. In most instances, the amount of the debt has been restructured and is less than the full amount that is owed to all the creditors.

The trustee in a Chapter 13 bankruptcy is responsible for learning about the financial situation of the person who is filing for bankruptcy, to determine how much they are able to make in payments to the bankruptcy court on a regular basis. The trustee also takes into account the income level of the person, or family, and the obligations which are exempt from the bankruptcy proceedings.

Because a Chapter 13 requires that regularly scheduled payments be made to the court, it is generally recommended only for debtors who have a regular and stable income. For those who are seasonal workers or freelancers, filing Chapter 13 bankruptcy is not the best solution for their financial troubles, in most instances.

When a debtor has agreed to the terms and payment plan of a Chapter 13, it is crucial that they always make their payment to the bankruptcy court on time. If they fail to make their payments as agreed, the entire bankruptcy court record and case can be thrown out. Should this happen, the creditors once again have the right to come after the debtor for the full amount of the debt and the protections under the bankruptcy relief process would not be available to them until they are eligible to file bankruptcy again.

If it occurs that a debtor, who is under a repayment plan through a Chapter 13, is not able to keep up with the payment schedule, then there is the possibility to find bankruptcy relief from the reorganization provisions agreed upon. In the case of a situation that arises, in which the debtor is unable to make the payments to the court as agreed, such as in the case of losing a job or other source of income or if they have an extended illness, they might be able to file a bankruptcy claim form known as a “hardship discharge.”

The first thing that must be looked at before seeking a “hardship discharge” of a Chapter 13 bankruptcy plan, is to evaluate the bankruptcy to see if it can be modified to a Chapter 7. If it can be modified from Chapter 13 to Chapter 7, then the “hardship discharge” would not be allowed. The case and complete situation should be reviewed by an experienced bankruptcy lawyer in order to know what options are available to the debtor. In all cases, because of the additional stress and expense of returning to the court, to once again fill out the Chapter 13 bankruptcy forms and get approval, every attempt should be made to make all payments as agreed to under the repayment plan.

Posted in Bankruptcy | No Responses »
Tags: , , , , , , ,

How can we stimulate the Economy?

Monday, March 30th, 2009

With the credit crunch tightening its grip on the UK’s economy,  is it possible to try and stimulate the economy? The issue that we have at the time of writing this is that people are not purchasing larger items, such as cars, televisions, houses! Smaller goods seem to be shifting ok but the larger financial obligation of more expensive goods is proving to be too much of a burden for Joe Public.

Germany have an excellent idea at the moment of offering minimum prices for traded in cars and this is subsequently giving people good opportunities to buy new cars from showrooms. If you took a quick glance at your nearest car showroom or dealership you will see that it is quite a barren place and therfore the implementation of our German neigbours policy may be a good idea to stimulate the economy.

Although things have tightened up somewhat, there are a group within society that still have an important role to play in terms of stimulting the economy – teenagers. They still have disposable income as a consequence of part and/or full time employment and play a massive role in purchasing goods such as Ipods, Mobile Phones and other high value, smaller electrical items. Teenagers often get bad press, but within the UK economy we need to cut them some slack and embrace thier buying power and the postive, knock-on affect this can have on keeping the tills ringing in the shops up and down the highstreet.

We simply need to try and ride the storm out and try and compound what earnings and savings we already have by adopting a rigid fiscal attitude pertaining to our spending habits. Think about the purchases you make now, rather than shipping everything onto a credit card. This financial storm will end, but as yet, nobody knows when.

Posted in My Finance Rant | No Responses »
Tags: , , , , , , , ,

Help Small Business – Give them Some Cash

Monday, March 30th, 2009

With the global credit crunch now firmly entrenched in the worlds financial market, many money lenders are now tightening their purse strings and refusing to help out small companies that are heavily reliant upon credit to function. Some people may ask, why do small companies need access to cash? Well the simple answer is that they need the money for a number of key financial issues, including:

  • Paying staffs wages
  • Paying suppliers
  • Utility bills for the running of the company

This is just a very small snapshopt of what small companies need the cash for and failure to meet any one of these, and indeed any other financial requirement can culminate in the collapse of the small business. With this comes a knock on effect to both the staff who are subsequently out of employment, and also the suppliers, who ultimately end up out of pocket.

So what is the solution to this? Well, if I had the answer I would be in a high position within the Goverment and not blogging on finance blogs! But I would suggest that to aid small business’ the Government needs to instruct the banks and building societys to release funds to the businesses to enable them to function and pay their debts. As discussed, this would have a knock of effect to many people within the business ‘chain’ and, ultimately have a positive affect all round.

Ads the UK Governemnt actually part owns many of the banks now, they shoud, in my humble opinion, enforce the release of capital. For too long banks, and their higher end employees have got away with making poor decisions. They have also made huge bonuses and this has impinged upon the UK economy and led to massive unemployment. Recently, Sir Fred ‘the Shred’ had his house pelted with stones and this kind of action should certainly be avoided. His case has become a cause celbre and the subsequent witch hunt will have little impact. He has received his pension and it will not be repaid. 

We need to give thought to how to prevent a further deepening of the credit crunch and try and help small business’ get through this difficult time, through directing banks to release funds to small business to help them survive!

Posted in My Finance Rant | No Responses »
Tags: , , , , ,

Credit Card Debt Management Can Prevent a Financial Crisis

Saturday, March 28th, 2009

For how many years have you used credit cards? Are you facing any problems with the use of charge cards? Have you ever identified the mounting problems you are facing at the? If not, keep it in mind that the arbitrary use of credit cards without doubt leads to the emergence and continuation of a great financial crisis, and in a majority of incidents the entire situation gets out of hand, even before you start to realize it.

If you have ever faced, or are facing any similar type of situation it is imperative for you to keep your finances in check, and at the same time be aware of the saga of credit card debt management. If you become attentive, and go through the entire issue you will find that there are several credit card debt management programs that are free or cost little, and facilitate you to regain control of both your finances and personal life.

Therefore, talk to the manager of a credit card debt management program, he or she is the best person to help you get out of this situation. They can show you the existence of several such programs or how you can easily simplify your payments. Once you are out of this credit card mess, you will get a great option of selecting any form of payment with a low interest rate, and that will enable you to save money. It will also reduce your debt by almost half and the interest rate will be lowered to a great extent.

How does this credit card debt management appeal to you?  Many experts say that the removal of any economic crisis is possible by an effective credit card debt management and the ultimate goal is making one debt-free within a couple of years.     

Acknowledge and Act

How do you manage after you have caught up? For this you need great planning and the will to stick to the plan. The efficacy of credit card debt management lies in the fact that, before purchasing any product on credit, you or any concerned consumer should be conscious of the way you plan to repay it. With your desire for expensive products, keep in mind that you will be led to a long-term debt. Reckless buying always adds to a crisis. If you fail to manage properly, take the help of the non-profit credit and free card debt management programs. They are the best way to help you get rid of your existing financial situation.

For more information please visit my Debt Management Plan and Advice Website.

Posted in Credit | No Responses »
Tags: , ,

When Should I Apply For A Credit Card?

Saturday, March 28th, 2009

bank credit cards

Before you go and decide to apply for a credit card to buy those new shoes, you may want to take a moment to carefully consider your purchase. Being away from home at college is a liberating time. You are surrounded by new people and have a new set of responsibilities placed onto your shoulders. Applications for MasterCard, Discover and Visa credit cards are all around you. The mantra of “buy now, pay later” echoes through the halls.

Instant approval credit cards may be a godsend when you find yourself in desperate need of school supplies or in need of the basic essentials. However, far too often the ability to easily apply and get one can lead to massive financial problems. Student credit card debt is out of control. Students are inundated with bank credit cards, MasterCard or Visa credit card offers and many do not consider the ramifications of how easy it is to abuse their use.

No one doubts that college is expensive. Tuition, room, board and associated fees can wipe out savings very quickly. You, as a student, may have such an immense class schedule that makes working part time impossible. This is especially difficult if you are involved in school activities, such as sports or academic organizations. Most parents cannot afford to pay for all the extra expenses a student incurs, not to mention if there are off campus expenses and luxuries wanted.

It is important to remember that when you apply for a credit card and have received it, you have agreed to the lender’s terms. Only use the line of credit as an emergency source of funds should you find yourself in need. You do not want to find yourself with maxed out cards and no way to meet the monthly minimum payments. Pay attention to the fine print and the interest rates.

Apply for a credit card and use it when you absolutely must. Do not continuously apply for those college student credit cards just because you can save 10% off your purchase. Eventually, you will have to pay back the balance and you may not have the funds available should a real emergency happen. Try to remember that going out with your friends for a night on the town does not qualify as an emergency!

Posted in Credit | No Responses »
Tags: , , , , , , ,

« Older Entries