Credit Score For Dummies

Filing personal bankruptcy is becoming more common, especially in this tough economy. Some of the stigma associated with bankruptcy has disappeared over time. People use it to wipe out debts, stave off foreclosure or just start over. Still, while it’s nothing to be ashamed of if you feel it’s your best option, you need to be aware of the ramifications of filing. It affects your credit report for 7-10 years and can negatively impact interest rates on credit cards and loans and even insurance premiums. Bankruptcy can negatively influence prospective employers. It Read more…

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Yes, you have read it right! It is indeed possible to rebuild credit even during the term of a bankruptcy. You need not wait for seven to ten long years before you attempt to regain your credibility as a borrower. You can even start doing it today.

Do not imitate consumers who have waited for their bad credit reports to close before they started reestablishing their credit profiles. Instead resolve to take steps that will allow you to immediately bounce back from bankruptcy and gradually recover your financial health. But how can you do this?

We have listed four simple steps that you can follow for you to successfully rebuild your credit history.

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The instant bankruptcy is filed, for either Chapter 7 or Chapter 13, a protective umbrella called the automatic stay is triggered which protects the debtor and the debtor’s property against the continuance of any action by any creditor.  For example, the automatic stay would protect and STOP a pending foreclosure. Additionally, when filing a Chapter 13 bankruptcy, that injunction extends to anyone else who is obligated to repay your debts.

However, the automatic stay is not absolute in that a creditor may restart collection proceedings by asking the court for permission.

Further, there are limits on how long the automatic stay lasts. For exa

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The goal of filing Chapter 7 bankruptcy is the possibility of having some or all of your debts discharged.  When a debt is discharged, it is essentially wiped away and you never have to repay it.  However, there are certain debts and obligations that can never be discharged in a Chapter 7 bankruptcy. 

In general, the following kinds of debt cannot be discharged:

All debts that you didn’t list on your bankruptcy petition will not be discharged;

1. Criminal fines and debts:  All court fees and court-ordered judgments related to any criminal activity cannot be discharged — neither are any judgments or debts incurred as a result of personal injury or death to others caused by your own negligence or criminal activity;
2. Student Loans:  Although there is a general policy not to discharge student loan debt, in some very rare circumstances, student loans can be discharged, particularly if a hardship condition exists;
3. Taxes:  Most tax debt cannot be discharged in bankruptcy.  However, if you meet the following requirements your tax debt may be discharged:
   1. The taxes are income taxes. Taxes othe

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Do you see no end in sight for paying off your student loan debt? Are you thinking about bankruptcy but have heard qualifying is difficult? How do you know if bankruptcy is right for you or if possible another option is better?

Who Can Discharge Student Loans in Bankruptcy Discharging student loan debt is not easy. You would have to prove undue hardship which means that you or your dependent have a condition which prevents you from working. Not being able to afford your payments is not an acceptable reason.

Alternatives Just because you don’t qualify for your student loan debt to be eliminated by the court, it doesn’t mean you’re out of options. You s

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While no one ever wants or thought they would file bankruptcy twice in their lifetime, the reality of the economic situation we are in has left many of my clients facing bankruptcy for the second or third time.

The Bankruptcy Abuse and Consumer Protection Act of 2005 changed the time in between filings.  Here is a quick guide to the time periods that apply to re-filing:

• You cannot file Chapter 7 bankruptcy until eight years from the date of the previous filing
(not the date of discharge) of the previous Chapter 7 bankruptcy.

• You cannot file a Chapter 13 bankruptcy unless you received a discharge under Chapter 7 bankruptcy 
more than four (4) years ago or under Chapter 13 bankruptcy more than two (2) years ago.

If you are currently in an active Chapter 13 bankruptcy that you cannot or no longer wish to complete, then there are provisions for converting a Chapter 7 bankruptcy to a Chapter 13 bankruptcy. This mi

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