Getting back on your Feet after Bankruptcy

Posted on July 23, 2013 by Staff Writer

As you may have learned by now, having to file for bankruptcy does not mean the end of your financial world. It is quite the opposite; you have the opportunity to have a fresh start after filing bankruptcy and having your debts discharged.

Create your Budget

Part of recovering from your bankruptcy is getting back on track. Create a budget that includes the items that need to be paid monthly. Make sure that you also cut the things that you do not need to have until you are sure that you are not taking on expenses that you cannot afford. This is the time to restructure your finances and ensure that all of you payments are timely to reflect a financially responsible comeback from bankruptcy.

Pay Cash when you can

Whenever you can, don’t use credit. You do not want to overspend and end up in the same type of situation that led to the bankruptcy. The way that you treat your finances now will heavily weigh on how you will look to potential creditors.

Stay away from Large Loans

While it is important to establish new trade lines, you want to stay away from large loans such as car loans. Until you establish that you are credit worthy, your interest rates will be higher because you will be a risk to new creditors. This higher interest rate will mean that you are paying more toward the interest of the loan than the principle. Depending on the type of loan that you are looking for, the higher interest rate can mean a significantly higher payment for you.

If you have questions about how to get your credit back on track once your debts are discharged, your Arizona bankruptcy attorney can assist you with questions as well as make good suggestions to get you back on track for the long term.

Bankruptcy Exemptions to Keep Wedding Ring

Posted on July 21, 2013 by Staff Writer

Bankruptcy exemptions will likely allow you to keep your wedding rings. Here’s how:

A bankruptcy exemption describes an asset that is exempt from the bankruptcy process. An asset identified as an exemption to bankruptcy is an asset you can keep.

These exemptions can be found listed in most bankruptcy codes as well as in Arizona Revised Statutes. The exemption for a wedding ring is quoted as follows: “All engagement and wedding rings not in excess of an aggregate fair market value of one thousand dollars.” This begs several questions.

What is fair market value? The bankruptcy code will also talk about replacement value. We all know, or at least suspect, that the normal makeup of a jewelry store is several times the value of the ring. The appraisals they provide are usually more disingenuous and just lead to higher insurance premiums instead of reflecting the actual value of the ring. Let’s look at it from a very pragmatic perspective. What would it really cost to replace the ring? Buying it a jewelry store is something love-struck patrons do. If you found one, could you replace it from a pawn shop? What would it really cost? What would the pawn shop really take? It is a used ring. You cannot usually buy used rings at the mall. Therefore, used rings at a pawn shop might be your best indication of fair market or replacement cost.

Unless your ring is declared on an insurance policy or the U.S trustee has reason to believe it is worth a large sum, it might occur to you that the receipt is not registered anywhere and how do they know you had a ring anyway. You probably had to sell it to pay your bankruptcy lawyer. You would be correct in all of these thoughts. But try not to fall into this trap. It is never a good idea to wear jewelry to a bankruptcy hearing, but the minute you do not declare an asset, you are exposing yourself to a lot of liability you just don’t need. You are signing under oath that you have declared all of your property, and perjury is such an ugly word.

If you are having trouble with the value of an asset compared to the exemption, don’t forget to subtract any money owed on the asset. In any event, you should probably talk to a qualified bankruptcy attorney. There are many ways to deal with the issue. Make sure you do it right. GET FREE HELP NOW.

Bankruptcy isn’t a Band Aid for Bad Financial Habits

Posted on July 13, 2013 by Staff Writer

Bankruptcy can be the right solution for those individuals who may need a way out of overwhelming debt, but it is not a band-aid for poor habits. One 28 year old learned that choosing to file bankruptcy is not the fix for money woes. It was made clear that changing those habits will ensure that filing bankruptcy would not be in vain. Not changing these habits will only put one back in a similar financial situation and bankruptcy may not be an option again.

Some people may think that filing bankruptcy will solve money problems when its only focus is on outstanding debt. Bankruptcy does not take care of future debt accumulation. The only thing that can prevent that is better spending habits. Taking a long hard assessment of outstanding debt will also help you determine if bankruptcy is the best option or if debt consolation is best.

Before making a decision to file bankruptcy, it is be best to consider all available options. For example, if the statute of limitation on a credit card debt has passed, this may not be a debt you are obligated to pay. However, it will remain on your credit for seven years. Statute of limitation begins from the time of the last payment or last use of the account whichever is later. Some creditors are willing to settle for 20% of the balance to satisfy the debt. If you are financially able to pay these creditors, bankruptcy may not be the best option.

However, larger accounts where the statute of limitation has not run its course, such as a reposed vehicle or medical bills bankruptcy protection may be in order. Filing a Chapter 7 bankruptcy could resolve all eligible debt if you qualify. Contact a qualified bankruptcy attorney to determine your options.

Image courtesy of freedigitalphotos.net

Why wait on your Bankruptcy?

Posted on July 5, 2013 by Staff Writer

Our bankruptcy law firm understands reluctance to talk about filing bankruptcy. But like a lot of things, by the time you consider it it’s too late and it’s inevitable. Let’s look at the logical extension of your current state of affairs. After that, we will look at the benefits of discharging your debt by getting help with bankruptcy early. After that we will ask you to make the smart move with your debt and GET FREE HELP NOW by scheduling a free, no obligation consultation with a real bankruptcy lawyer, not a paralegal or salesperson.

If you are considering bankruptcy, you have probably come to the point where you can no longer cover your expenses and service your debt. You are likely living paycheck to paycheck or using any source of funds just to cover your expense and really not paying down on any debt. This is the death spiral of finances. At this rate, how long do you think it will take you to pay off your debt, let alone save any money to take care of your family or even yourself now or in old age? We only get to make these decisions once. Waiting too long to address the issue will only provide regret with no ability to do it over right. Regret will not buy a car when yours wears out like they are built to do. Regret will not allow you to provide for your family or retire. Regret will not allow you to enjoy or live life. There is no need to stay out in front of the bus as it hits you. GET FREE HELP NOW.

When you file bankruptcy, you are not forced to sell all of your things. Bankruptcy is a federal debt relief program. You will be able to keep all of the things you need as long as you still have them when you file. However, if you hold out until the last minute and sell everything before you get help, there is nothing left to keep. You won’t have the assets you need to start over. Don’t do this t yourself. GET FREE HELP NOW.

We can help you. One of our experienced bankruptcy attorneys can guide you to financial freedom. Before you get payday loans (which can be dealt with in bankruptcy) , cash in your 401(k) or IRA, transfer assets to friends or relatives, or simply give up, you can meet with a quality bankruptcy lawyer for free. You can even schedule a free phone consultation to see if bankruptcy is right for you. You cn deal with this and we can help. GET FREE HELP NOW.

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

How soon can I buy a car after I file for bankruptcy?

Posted on February 5, 2013 by Staff Writer

Technically speaking, you are free to purchase a vehicle as soon as your bankruptcy has been filed. However, if you want to finance your next vehicle purchase you will need to wait until after the bankruptcy has been filed. A bank will not finance a vehicle purchase before the bankruptcy has been discharged. So if you need to purchase a car after the bankruptcy has been filed but before it is discharged you will need to pay cash for it.

Believe it or not, once you file for bankruptcy you will get inundated with offers from car dealerships to sell and finance you a new car. Bankruptcy records are public and so car dealerships buy lists of everyone who has filed for bankruptcy and send them mailers. These car dealerships aren’t willing to extend you credit because they want to help you to improve your credit score or because they’re trying to help you get back on your feet. They do it in large part because you are not able to file bankruptcy again for 8 more years. This means that if for some reason you are not able to make your car payments, they will repossess your car. The bank will be able to sue you for their losses and garnish you wages. The difference now is that there is nowhere to run and nowhere to hide; you will not be able to seek shelter in bankruptcy. You will be garnished until you pay them in full.

Be sure that you can afford the new vehicle you are buying and that you are not starting the debt cycle all over again. These post-bankruptcy car loans come with very high interest rates and in turn inflated car payments. Filing for bankruptcy gives you the opportunity for a fresh start and a second chance; don’t squander the opportunity to live debt free because someone is willing to sell you a shiny new car.

So if you need to purchase a car after filing for bankruptcy you best bet is to purchase something for cash.

Is Bankruptcy right for me?

Posted on February 1, 2013 by Staff Writer

The decision to file bankruptcy is a very personal one and should be made only after careful consideration. Your first step should be to know all your available options. So take advantage of the opportunity to meet with one of our bankruptcy attorneys for a free consultation to find out how bankruptcy would affect your situation. They will be able to explain the bankruptcy process to you and how it will affect you.

What can bankruptcy do that other forms of debt settlement cannot? One thing unique to Bankruptcy is the “Automatic Stay”. The Automatic Stay of Bankruptcy goes into effect as soon as the bankruptcy is filed. The Automatic Stay prevents creditors from taking further collection efforts against someone who has filed for bankruptcy. This means that if you are currently being garnished the garnishment will immediately stop. Additionally, bankruptcy will prevent foreclosure of your home, stop repossession of a vehicle, stop creditor lawsuits, and creditor harassment.

Are you struggling or missing minimum payments on your credit cards? Then contact each of your creditors and find out what the current balance is. Many debt collectors will only settle for lump-sum cash payments. Or if your creditors will accept new repayment plans will you be able to actually keep up with those payments? Do you have the cash to pay off your creditors? If you cannot make minimum payments on your credit cards you may want to consider filing for bankruptcy to get a fresh start.

Why it is a bad idea to make minimum payments on credit cards

Posted on December 4, 2012 by Staff Writer

Paying the minimum balance on a credit card will leave you paying much more for an item than it was originally worth. Credit card companies make money by getting you to pay interest on items that you purchase with their cards.

By paying the minimum balance on credit cards with high interest rates, you are further delaying payment while racking up new charges for every month your balance is not paid in full. For example, if you purchase a bicycle that costs $100 using a credit card with a 29% interest rate. Every month that you do not pay the original balance you are charged additional interest. Therefore, the credit card company will add 29% interest to your remaining balance.

Compounding Interest

Another important factor to consider is compounding interest. What is it? When you make a payment that is not the full amount of the balance, interest is added to the principle (what the item originally cost). Instead of the next month the principle going back down to the original cost of the item, the principle is now the original cost plus any accrued interest. In this way, interest then gets added to the interest, and so on and so forth. This is why credit card debt can so quickly snow ball out of control. If you are struggling to make your credit card payments then let us help you. A Chapter 7 bankruptcy may be what you need to give you a fresh start.