Financial advice for college students

Posted on June 29, 2013 by Staff Writer

With the expenses of a college education climbing higher and higher, it is important that college students know how to manage their finances. A recent article has listed a few helpful habits for students to manage their money.

Establish a budget. The best way to get started managing your money is by reviewing your spending over a period of a couple of months to figure out where all of your money is going. This will include your living expenses, credit card bills, utilities, food, and other personal expenses. Identify how much money you have coming in each month so that you can determine if you will need to make any lifestyle changes.
Review your expenses. Take a close look at your monthly expenses so you can identify where costs can be reduced. For example, if you’re going out to eat for lunch or dinner every night, consider buying a meal plan and eating on campus, which can save you money in the long run.
Bundle your costs. You can save more money when you combine some of your expenses to one account. For example, it may be cheapest to have one company provide all of your telephone, internet, and cable. Bundling your expenses allow you to reduce expenses without getting rid of anything.
Attack your debt. Make a plan to destroy your debt quickly and efficiently. Start by paying off your smallest debts first by contributing large sums of money each month. At the same time, make minimum payments on your other debt. Keep moving on to larger and larger debt.
Develop a savings plan. Before starting a savings plan, make sure you pay off all of your credit card debt. Debt interest rates are higher than savings interest rates, so debt must be erased before you can really buckle down and save money. Once credit is under control, build a savings plan. This plan should allow you to save money for short- and long-term goals.
Money matters. When it comes to managing your money, acknowledge that you may need help. Reach out for advice from financial experts or even your parents.

Managing money can be tricky and takes some serious efforts. If you are struggling with your finances and debt, contact a Phoenix bankruptcy attorney to help you get things back in order.

Image courtesy of posterize/ freedigitalphotos

To Reaffirm or Not to Reaffirm, That is the Question!

Posted on June 27, 2013 by Staff Writer

Filing for bankruptcy is a difficult decision that few individuals make lightly. Ultimately, the goal is to emerge from bankruptcy with as little debt as possible while protecting assets that would otherwise be subject to a bankruptcy disposition. The federal bankruptcy laws usually require the help of an experienced attorney. Without an attorney, there is a likelihood that a person who files for bankruptcy will remain liable for certain debts that would be eliminated if the bankruptcy is filed correctly.

Take the concept of reaffirmation, for example, which allows choosing to remain liable for certain debts despite the bankruptcy. See 11U.S.C. § 524(c). Usually, bankruptcy eliminates just about any contract that creates a debt obligation, with some exceptions. If the debt is secured by an asset, e.g. car or home, the entity that holds the debt has the power to repossess the asset, but cannot go after the person for the deficiency. For example, if a home had an outstanding mortgage of $100,000, but the home is only worth $80,000, the bank may repossess the home, but cannot sue mortgage holder for the $20,000, unless they reaffirm, that is. By choosing to reaffirm, a person is effectively reviving an obligation that the bankruptcy eliminated. Obviously, lenders would have everyone reaffirm their debt, but experienced bankruptcy attorneys would seldom advise their clients to do so.

Another benefit of not reaffirming is that one may live in the home as long as they make the monthly mortgage payments, and the title stays with the owner. Banks dislike bankruptcies, but they dislike having to pay for maintaining a vacant home even more.

The bad news – yes, there is bad news – is that credit reports will suffer despite the mortgage payments.

The good news is that an experienced Arizona bankruptcy attorney has the ability to create a bankruptcy plan that fits each client’s needs. Contact us today for assistance with your bankruptcy.

New Program Aims to Lower Medical Care Costs

Posted on June 25, 2013 by Staff Writer

It’s no secret that healthcare will be one of America’s greatest challenges in the 21st century. Due to the rising costs of medicine and the growing percentage of an older population more at risk of expensive procedures, it’s no wonder that medical bills are one of the leading reasons for personal bankruptcy. In fact, according to a survey conducted by the Harvard Law School and Ohio University and reported by Reuters, more than 60 percent of personal bankruptcies in the U.S. every year are because of medical bills. “Unless you’re Warren Buffet,” Harvard’s Dr. David Himmelstein told Reuters, “your family is just one serious illness away from bankruptcy. For middle-class Americans, health insurance offers little protection.”

This can be terrifying for any family with older members who are now considering their options. According to National Public Radio, the annual average cost of a nursing home with a semi-private room is almost $80,000—not a small bill by any means. The average annual cost of having someone to work as a home health aide is just over $20,000, which is significant as well. But a new experimental nationwide program is aiming to “keep people healthy and out of the hospital,” which will hopefully help to lessen some of these cost burdens. The program “dispatches hospital-trained nurses to patients’ homes to do whatever is necessary—manage prescription drugs, take blood-sugar readings, teach healthy eating habits or even arrange delivery of a motorized wheelchair,” according to AZ Central.

The government is calling these new initiatives Accountable Care Organizations, and Banner Health, a Phoenix-based hospital system, is among 32 organizations in the country to adopt the experimental program, according to AZ Central. These are meant for people on government-issued health insurance, but “private insurers such as Cigna and Health Net are launching similar agreements with hospitals for patients who have private health insurance.” A spokesperson for Banner told AZ Central that during the first year that the program was in operation for 51,000 metro Phoenix residents, “it reduced Medicare spending by 2.5 percent per person.”

If you or someone you know is facing bankruptcy because of high medical bills, don’t go through it alone. Contact a dedicated Arizona bankruptcy attorney today.

Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net

Declaring Bankruptcy to Save Your Home—Can It Work?

Posted on June 23, 2013 by Staff Writer

Arizona is still ahead of the national average when it comes to the foreclosure rate, even several years after the brunt of the housing crisis is behind us. In 2013, according to Realty Trac statistics, the percentage of units nationwide that were in foreclosure was .11, while in Arizona the percentage of unites that were in foreclosure was .13. The good news is that both figures are finally at less than 1 percent, after several years of remaining higher. The good news continues for Arizona residents with the fact that houses in auction in the state are down nearly 64 percent from last year, and those that are bank owned are down 52 percent from the previous year, according to Realty Trace. Yet that doesn’t mean that all Arizona homeowners are out of the dark, and many may still be considering filing for bankruptcy in an effort to avoid losing their home. Is this a possibility?

According to Fox Business News, it’s not. “This will not stop the foreclosure, only delay it,” states Fox. “In some cases, only for a month or two.” That’s bad news for any family really desperate to keep its home. Filing for Chapter 7 does in fact stop the foreclosure procedure, according to Fox. But “the lender can make a request to the court to remove the house from bankruptcy protection, also known as a ‘relief from stay.’ Getting this relief means the lender can continue with the foreclosure process,” according to Fox. And lenders, as one may imagine, are “usually very efficient in requesting that relief.”

The one recourse a person has, according to Fox, is to attempt to modify the loan with your lender so your mortgage is more manageable. The trick is that for any loan modification to be approved, a person must have sufficient income—which is often the catch 22 for families approaching bankruptcy.

If you or someone you know is considering bankruptcy, the most important first step is to talk with a qualified professional to determine if it’s right for you. Don’t go through it alone. Contact a dedicated Arizona bankruptcy attorney today.

Image courtesy of smarnad / FreeDigitalPhotos.net

Getting a Mortgage after Bankruptcy

Posted on June 21, 2013 by Staff Writer

While having to file bankruptcy may be a clear setback for some, it really can be utilized to get a fresh start. Part of this fresh start is reestablishing your credit profile so that you are able to move on from your state of bankruptcy.

The first thing that you need to do is to allow yourself enough time before applying for a mortgage loan. Most lenders will require that you wait for at least a year after your bankruptcy is discharged. Even after a year, your interest rates may be high. The longer you can wait the better it will be for you.

During this waiting time, you want to start building new trade lines. Lenders determine your creditworthiness by your payment activity. The longer that you show a positive payment history, the better your chances are for being approved. Being approved for any type of credit can be challenging initially. You may be charged higher interest rates initially. You can start with small lines of credit such as secured credit cards or even an installment loan through your bank.

While you are rebuilding your credit, evaluate your financial situation. You need to figure out how much you can afford to pay monthly. It is important to stay within your means so that you do not end up in another financially binding situation such as the one that led to your initial bankruptcy filing. You will need to show your ability to pay for the new mortgage loan with your financial statements.

This would also be a great time to create a new budget. Cut back on the things that are not completely necessary. If you look at everything that you spend, you will find something that you can do without. Having a good credit profile is important. If you have questions regarding filing bankruptcy or reestablishing your credit after bankruptcy, contact your Arizona bankruptcy attorney today.

Image courtesy of patpitchaya/freedigitalphotos.net

Good Credit after Bankruptcy Is Possible

Posted on June 19, 2013 by Staff Writer

Arizona residents and others may hesitate to file bankruptcy for various reasons. One such reason may be the fear that having a good credit score again seems impossible after bankruptcy. That is simply not true. You can improve your credit score even after you have filed bankruptcy.

Life happens, and bills can get out of control. To restore order, many people turn to bankruptcy. Bankruptcy is a personal choice and one that can provide a person with a fresh start. It will affect your credit but credit is forgiving. Certain actions can help you regain your good score over time.

Keep certain accounts open, such as car and mortgage accounts. Most often, these types of lenders will send you a reaffirmation letter asking for your confirmation to continue your payments. If you can afford to it is beneficial to your credit to do so. By continuing your payments, you are rebuilding your credit, as these lenders will continue to report monthly to the credit bureaus.

Secured credit is still credit and it is a good way to rebuild credit. With as little as $250, you can be well on track to regaining a good credit score. Check with your bank to see if they offer a secured card. The initial deposit is held as collateral. This deposit is usually released after you have proven you can maintain a good payment history.

Build credit by association when you become an authorized user on someone else’s account who has good credit. Some friends and family may not be willing to do this. This will not reflect poorly on his or her score, but it can work to improve your score.

Are you considering bankruptcy? Contact an Arizona bankruptcy attorney to help with any questions that you may have. He or she can help protect your assets and discuss how to get your credit back on track. It is a free consultation.

Image courtesy Steve Miles of freedigitalphotos.net

We Have Been Where You Are

Posted on June 17, 2013 by Staff Writer

Your dignity matters. Your dignity has likely been under assault lately. The burden of debt issues can weigh heavily on your soul. It can feel like neglecting an obligation to a creditor or to society, simply because of a temporary situation of not being able to meet the demands of the creditor. This can cause depression, loss of self-esteem, and feelings of hopelessness. But don’t give up. We know how your feel. We have all been there and we can help you.

Feeling like you are not able to meet your financial obligations can seem like it consumes your life. Instead of thinking of work or family, you are thinking of the number of days to the paycheck that will not be enough anyway. There are many ways to deal with your financial obligations with suffering and struggling. Get Help Now by meeting with one of our experienced bankruptcy attorneys for free. There is no obligation whether bankruptcy is right for you or not. We will discuss any issues involving your mortgage on your home, keeping your home through the bankruptcy law, any money owed on your car, discharging any delinquency on your car loan and keeping your car if you file for bankruptcy, your ability to discharge taxes and student loans, and how to pay for your bankruptcy.

You can talk directly to a lawyer for free, one on one or over the phone. There is no pressure. You have enough to worry about right now. We do this to help you, because we have been where you are, and we know how to help. You don’t have to face this on your own. Let our Arizona bankruptcy law firm help you. Whether bankruptcy is right for you or not, we will be able to direct you, to a better tomorrow, and relief from your creditors today.

Get Help Now

Chapter 13 bankruptcy

Posted on June 15, 2013 by Staff Writer

If you are considering filing for personal bankruptcy, there are two different options that you have; Chapter 7 bankruptcy and Chapter 13 bankruptcy. Although they will both help you get out of your debt, each of them is unique and one is often better than the other for each individual. It is important to learn about both of them before choosing to file for either.

Chapter 13 bankruptcy is based on a payment plan in which the bankrupt person pays all or most of his or her debts back within three to five years of filing. If you file under Chapter 13, you must propose your own payment plan, which will then be approved by the court, which will hold off the debt collectors as long as you are making your payments. In this case, it is important to be realistic in making a payment plan; it should be a realistic plan that allows you to make appropriate payments on a regular schedule.

In order to file for Chapter 13 bankruptcy, you must pass two tests: The best-interest test, which ensures that debt collectors will be paid at least as much as they would from a Chapter 7 bankruptcy, and the best-efforts test, which requires you to pay all additional income that you receive to the trustee for at least the first three years of your payment plan.

Other types of bankruptcy also exist, such as Chapter 11, which is mostly for large businesses; Chapter 12, which is similar to Chapter 13 and, of course, Chapter 7, which is the other common personal bankruptcy type along with Chapter 13. Chapter 7, however, dismisses your debts in exchange for seizing your assets rather than requiring payment.

If you are considering filing for bankruptcy and do not know which way to go or how to go about it, contact a bankruptcy attorney for assistance. Arizona attorneys can help you file for the right kind of bankruptcy for you today.

It’s Not the End of the World

Posted on June 13, 2013 by Staff Writer

So you cannot pay all of your creditors right now and you are probably behind on some bills and a mortgage. It is not the end of the world. In fact, it’s not even that big of a deal in the grand scheme of things. Struggling with debt has a way of magnifying itself. Not only are you feeling bad because you cannot pay your creditors right now, but the tactics the creditors use to try to collect the debt helps the issue to snowball into something it is not. However, unless you address this issue quickly, it is easy to convince yourself to do things that may affect your health or your family. Let’s not let it go that far. Let’s put this in perspective.

You cannot got to jail for not paying your creditors. You cannot be forced to sell an organ or a child to satisfy your creditors. In fact, your creditors have surprisingly few rights and most will take a lot of time to accomplish. This will give you enough time to plan a way out of the mess. The absolute best way to do this, is to talk to one of our bankruptcy lawyers for free. Whether bankruptcy is right for you or not, you will be able to talk directly to a bankruptcy attorney who has many years’ experience dealing with your exact issues. Whether it is a foreclosure or delinquency on a mortgage, repossession or harassment about a car loan, taxes, student loans, business debt discharge, judgments, or just too much credit card debt, our bankruptcy lawyers have seen it all.

You will talk directly to a lawyer. There will be no paralegal or salesman to offer advice they hope it is the law. If you are told you have to meet with anyone besides the attorney directly, you are with the wrong law firm.

We answer the phone seven days a week and we are always available to help with your debt questions. You can schedule a meeting with a lawyer in person or over the phone. Either way, you will speak directly to the attorney and get real legal advice.

Don’t let this thing get out of hand. Meet with an experienced Arizona bankruptcy attorney for free.

GET FREE HELP

Most Common Causes of Bankruptcy

Posted on June 9, 2013 by Staff Writer

Bankruptcy provides a great tool for people who are unable to dig out of financial holes. Rather than lose everything you have, bankruptcy can allow you to reclaim your life. But not all bankruptcies are brought about by crazy spending sprees. Do not let the stigma associated with bankruptcy influence your decision if your finances have gotten out of control.

According to multiple studies of the causes of bankruptcy, there are a handful of common causes of bankruptcy, one of which is excessive spending. The least common cause of bankruptcy is unexpected disasters or calamities. If a catastrophe changes your situation either by taking away your car, your job or other things you need to live, then bankruptcy can help you regain your footing on solid ground. This cause of bankruptcy only influences about seven percent of all filings.

Another cause of bankruptcy is divorce, which is how half of marriages end. From a financial standpoint, divorce can make it difficult to live the life you had before. You need to maintain two households with the income from your married life. It is also necessary to pay for legal fees, alimony, and child support if you become single again. Divorce contributes to eight percent of bankruptcy filings.

Job loss has been a very prevalent cause of bankruptcy in recent years. Almost eight percent of Americans are currently unemployed as of May 2013. These people usually pay for insurance out of pocket which can be a drain on already depleted household income. 22 percent of bankruptcies are influenced by unemployment.

By far the most usual cause of bankruptcy over the years is medical expenses. The bad news is that medical costs will continue to rise as new medicines and procedures are developed to keep us healthy. In 2013, Reuters figured that medical costs would increase by almost eight percent from 2012. When medical costs are already too expensive for most households, bankruptcies will be more prevalent. If you feel that any of these reasons is putting a strain on your finances, then consider reaching out to a skilled bankruptcy attorney from Phoenix today.

image courtesy of moggara12 / freedigitalphotos.net