Personal bankruptcy is a big step for many people, and it is a legitimate tool that helps people get out from under a mountain of debt. Many borrowers successfully build their credit after filing bankruptcy, and continue on with success in their financial lives. Read on to find out more about personal bankruptcy, and what it means to you financially.

Know the difference between Chapters 7 and 13 bankruptcies. Chapter 7 will wipe your debts clean, meaning you will not owe what you file against. Chapter 13 requires you to agree to repay your debts. These debts need to be repaid within three to five years of the filing date.

Make sure you list all of your assets and all of your creditors when filing for bankruptcy. If you are dishonest, your trustee will discover it, and your bankruptcy case can be dismissed with cause. The more you disclose, the more likely you are to get the outcome that you are looking for.

When you are thinking about filing bankruptcy, always be honest about everything. Do not think that hiding assets or income will help your case for bankruptcy. It could turn out that the court may just dismiss your petition, and you will not be able to file again to have those debts listed.

Before you decide to file for bankruptcy, be sure to obtain a free consultation with a bankruptcy attorney.  Any good attorney will offer a first appointment free. This is an important consultation, as you will need the answers to many questions. These may include: attorney fees, what type of bankruptcy to file, and what types of information, paperwork you will need to provide. Most importantly, an attorney will be able to determine if filing for bankruptcy is the right decision for you.

Do not forget to list the name of any of the creditors that you would like to be included when you file for bankruptcy. Any creditor that is not listed will not be included.This means that you will still owe them the entire balance that is on your account.

Filing personal bankruptcy can provide you with a safe haven from creditors and bill collectors. Navigating your way through bankruptcy to a debt-free life can help get you on the road to a more positive financial future. Personal bankruptcy is not for everyone, but it is worth investigating to see if it makes sense for you.

Credit cards are great for many reasons. They can be used, instead of cash to purchase things. They can also be used to build an individuals credit score. There are also some bad qualities that are attributed to credit cards as well, such as identity theft and debt, when they fall into the wrong hands or are used incorrectly. You can learn how to use your credit card the right way with the tips in the following article. If you have gotten in over your head, read on to learn how to find a highly qualified Irvine Bankruptcy Lawyer to help you out of this mess.

Know your credit history before applying for new cards. The new card’s credit limit and interest rate will depend on how bad or good your credit history is. Avoid any surprises by getting a report on your credit from each of the three credit agencies once a year. You can get it free once per year from AnnualCreditReport.com, a government-sponsored agency.

Live by a zero balance goal, or if you can’t reach zero balance monthly, then maintain the lowest balances you can. Credit card debt can quickly spiral out of control, so go into your credit relationship with the goal to always pay off your bill every month. This is especially important if your cards have high interest rates that can really rack up over time.

Once you close a credit card account, be sure to check your credit report. Make sure that the account that you have closed is registered as a closed account. While checking for that, be sure to look for marks that state late payments. or high balances. That could help you pinpoint identity theft.

Keep track of what you are purchasing with your card, much like you would keep a checkbook register of the checks that you write. It is far too easy to spend spend spend, and not realize just how much you have racked up over a short period of time.

Keep track of how much money you are spending when using a credit card. Small, incidental purchases can add up quickly, and it is important to know how much you have spend on them, so you can understand how much you owe. You can keep track with a check register, spreadsheet program, or even with an online option offered by many credit card companies.

Bankruptcy

If you have gotten in over your head with credit, and have no idea how you will pay back your debt, don’t give up just yet. Many companies now have hardship programs which you can enter, that will lower your interest, set you up on a payment plan you can afford, and save you the damage of bankruptcy or litigation.

Surprisingly, if you file for bankruptcy, many credit companies will offer you cards within six months of filing. The reason is simple. They know that you cannot file for bankruptcy for another 4-8 years, which makes you a pretty low risk for default. Visit here to find a good Orange County Chapter 7 Lawyer or Orange County Chapter 13 Lawyer.  To repair your credit, you may take one of these offers, but you must pay these on time. If you do not trust yourself, avoid these offers.

If your bills are starting to pile up, do not make up for it with your credit cards. This is a dangerous temptation that you must avoid. People get into financial trouble by doing this. Their cards are utilized to take care of monthly bills, interest gets out of control, and they have to file for bankruptcy. Credit cards do not replace your paycheck.

Now that you see the good and bad sides of credit cards, you can prevent the bad things from happening. Using the tips you have learned here, you can use your credit card to buy items and build your credit score without being in debt or suffering from identity theft at the hands of a crook.

“One of the most common types of bankruptcy is chapter 7 bankruptcy”, says Bert Briones, an Irvine bankruptcy attorney.  “In this, a person’s assets are sold off in order to cover their debts.”  The property to be sold is surrendered to a bankruptcy trustee, who then goes about the process of liquidating the assets to get the money needed to pay off debts. Not all property is eligible for liquidation, and filers can claim exemptions for certain assets that will prevent them from being surrendered and sold.

Federal and state laws list certain types of property that a person can claim as exempt. In some cases, your home state may choose to allow you to decide whether you want to abide by state or federal regulations regarding exemptions. In general, it’s a good idea to go with whatever set of regulations allows you to claim more of your property as exempt.

As a rule, you are allowed to keep the tools of your trade, clothing, and everyday household goods. Household goods include things like appliances, books, furniture, and pets. Under federal regulations, you can also claim unlimited exemptions for healthcare goods like wheelchairs, breathing machines, and at-home care equipment. If you are filing for bankruptcy jointly with your spouse, many exemptions can be doubled.

Property isn’t the only area where exemptions can be claimed. You can claim exemptions for things like alimony, wrongful death trusts, unemployment, veteran’s benefits, public assistance, and social security. Disability insurance, immature life insurance policies, and life insurance proceeds can also be exempt.

Be aware that creditors can attempt to contest your exemptions. When you meet with your bankruptcy trustee about a month after filing, your creditors may attend, too. At this point, they can try to argue against the property you’ve claimed as exempt, to make it eligible for sale.

Regulations for bankruptcy exemptions and the filer’s ability to choose federal regulations over state regulations varies from state to state. Before you file for bankruptcy, discuss your options with a good bankruptcy attorney, so you can begin to decide which pieces of your personal property you wish to claim as exempt.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

“It’s pretty obvious that creditors don’t like it when people don’t pay their debts, so it’s natural to assume that they wouldn’t mind it so much when a debtor files for bankruptcy,” says Bert Briones, an Irvine bankruptcy attorney. ”Unfortunately, especially when it comes to chapter 13 bankruptcy, this isn’t the case.”

To start with, chapter 13 bankruptcy is bankruptcy in which the debtor is not required to sell off their personal property to cover their debts. Instead, the debt is restructured and a multi-year plan is formulated that ensures that the creditors get regular payments.

Unfortunately for them, people generally file for bankruptcy when they can’t afford the regular payments they would be making under the original terms of their debt agreement. This means that creditors will, as a rule, be getting much smaller payments under chapter 13 than they would under the terms of their original agreement.

Some debts are secured, while others are unsecured. Secured debts are debts where the creditor can repossess something- for example, if you take out a loan for a car, a creditor can repossess your car if you fail to pay. Unsecured debts are granted based on a person’s credit history, like credit cards. Secured debts have more protection than unsecured debts.

A debtor can always be forced to surrender their car or home, even during bankruptcy, ensuring that their creditor gets something out of the deal. Unsecured debt doesn’t come with that kind of guarantee. A creditor seeking redress for unsecured debt can walk away with just a fraction of what they were owed.

Lastly, bankruptcy forces creditors to stop adding up things like interest and late fees. While they would normally be able to keep piling on fees, then sue you for what they’re owed, filing for chapter 13 forced them to stop that. They also cannot harass you, intimidate you, or attempt to take you to court.

So, what does all of this mean for debtors? Unfortunately, creditors have more money and sway than debtors do, so they’re generally the ones who influence bankruptcy legislation. Recent changes to bankruptcy law now make it harder for debtors to file.

If you are considering filing for either chapter 13 or chapter 7 bankruptcy, you’ll need the help of a good bankruptcy attorney. They’ll be able to help you determine which type of bankruptcy you’re eligible for, how much of your debt can be reconciled, and what kind of protection you’re entitled to.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

“It’s a common misconception that all debts can be erased with chapter 7 bankruptcy, but this isn’t the case,” says Bert Briones, an Irvine bankruptcy attorney .  ”Some debts are “non-dischargeable debts,” and cannot be eliminated by filing for chapter 7, regardless of the circumstance.”

These debts include criminal fines (like court fees or penalties), and back taxes. You may also not attempt to discharge any debts incurred as a result of criminal activity. For example, if you were charged with negligent homicide, you cannot attempt to use chapter 7 bankruptcy to discharge any debts related to the victim’s death, even if they are not court fees or fines.

Debts incurred due to fraud or false information will not be considered dischargeable.  Fraudulent debts are those that you rang up knowingly before filing for bankruptcy. For example, if you obtained a new credit card, charged it to the limit purchasing items subject to bankruptcy exemption, and then filed for bankruptcy less than ninety days later, that debt will not be discharged.  Similarly, if you lied on a credit card application in order to obtain the card, any debt incurred on it won’t be eligible for chapter 7.

Any debts that weren’t listed on your original bankruptcy filing also will not be discharged.  When you file for bankruptcy, it is your responsibility to list all of your dischargeable debt. Any that you neglect to mention will not be considered at that time.

Alimony or child support is also not dischargeable, however divorce settlements may be if it is mutually agreed upon by your former spouse.

Lastly, you also cannot use chapter 7 to discharge debts that you racked up paying for non-dischargeable debts. If you took out a loan or cash advance in order to pay for a fine relating to a criminal charge, for example, you are not eligible to claim that loan in your bankruptcy filing.

If your debts fall under these criteria, don’t worry. Even if chapter 7 isn’t an option for you, you might still be eligible to file for chapter 13 bankruptcy, instead, since it operates a little bit differently. Contact a good bankruptcy attorney in order to go over your complete list of debts, so you can determine whether or not you are a candidate for chapter 7 or chapter 13 bankruptcy.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

“Filing for bankruptcy is a little more complicated than many people think,” says Bert Briones, an Irvine bankruptcy attorney . In general, filing for bankruptcy is done when a person or business has debts that exceed their assets. Personal bankruptcy is a bit different than corporate bankruptcy. People are able to file for either chapter 7 or chapter 13 bankruptcy, both of which offer different protections, and impact the filer’s credit history in different ways.

Chapter 7 bankruptcy is the type of bankruptcy most people end up filing for. With chapter 7, many of a person’s assets are liquidated in order to repay their financial obligations. This will eliminate some types of debt, but things like mortgages and car payments will remain. It’s good for getting rid of things like credit card debt, or other bills that don’t require an initial deposit of collateral (referred to as unsecured debt).

In many states, filing for chapter 7 bankruptcy can only be done by individuals that pass a “means test,” which compares their income to a statewide average to determine whether they have enough debt to warrant filing for chapter 7 bankruptcy. This type of bankruptcy remains on a person’s credit history for ten years, and there is a six to eight year waiting period before they will be able to file for bankruptcy again.

Chapter 13 bankruptcy differs from chapter 7 in that it does not eliminate debt. Instead, debts are consolidated, and a repayment agreement is reached between the debtor and their creditors. This repayment agreement usually spans three to five years, and impacts the debtor’s credit history as long as the repayment agreement is in effect. Chapter 13 bankruptcy is good for individuals with a high income, and it does not require debtors to liquidate their assets.

Filing for bankruptcy is more complicated than it sounds, and the decision of how to go about doing so isn’t an easy one. A good bankruptcy lawyer can help advise you on whether or not bankruptcy is a legitimate option for your financial situation, and assist you in determining whether chapter 7 or chapter 13 is more appropriate.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

“Bankruptcy is useful when someone’s financial obligations exceed their assets. Filing for bankruptcy has some negative connotations for a lot of people, but it’s really just a legitimate way for a person with a poor credit history to get a new chance to improve it,”says Bert Briones, an Irvine bankruptcy attorney . “Bankruptcy allows these people to eliminate or repay their debts, by restructuring their debts and allowing them to go on honoring their financial obligations under the protection of bankruptcy law.”

Though declaring bankruptcy is extremely useful for people who have wound up in over their heads when it comes to overdue bills and loan balances, it isn’t always suitable for every situation, and the decision of whether or not to declare bankruptcy isn’t an easy one. In general, it’s a good idea for a person to file for bankruptcy when they have assets that creditors can attempt to seize. This includes things like real estate, a car that’s worth over a certain value, or a job where employees’ wages can be garnished.

It is not usually necessary for someone to file for bankruptcy when they don’t meet these criteria, since the worst most creditors will be able to do is keep calling and sending letters. People very rarely end up in jail just for owing money, and creditors can’t attempt to seize your household goods, furniture, or other owned items that don’t count as assets.

Filing for bankruptcy prevents creditors from continuing to harass you, and restructures your debts so you can pay them off. Certain kinds of debts may be eliminated entirely. This will negatively impact your credit score, usually for five or ten years before the bankruptcy filing is removed from your credit history. Fortunately, most people who need to file for bankruptcy have credit scores that can’t really get much worse, and being able to reduce or eliminate their debts can actually end up making their credit better than it was before the declaration of bankruptcy.

Though bankruptcy has a long-term, negative overall impact on your credit score, it can still be a good decision for you if you have things creditors can take from you. Bankruptcy will keep them from hounding you, and give you some legal protection while you repay your remaining debts.  By declaring bankruptcy, you’ll enable yourself to get a fresh start financially, and go on to build a stronger credit history for yourself.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

“A credit score is a shorthand reflection of the information on your credit report, sort of a “grade” you earn for doing things that impact your credit history. Paying bills on time, and doing other things that build your credit will give you a good credit score, while late payments and unpaid balances will give you a poor one,” says Bert Briones, an Irvine bankruptcy attorney .

In most situations, a credit score of less than 400 is considered poor, but some institutions will even consider a score of 500-600 less than desirable.

With a poor credit score, you are less likely to be approved for things like lines of credit and loans. You may even have trouble getting things like phone lines, cable, or other utilities. Some businesses may require customers with poor credit scores to pay a large initial deposit before giving them service. Others may refuse service entirely. You will have a very hard time purchasing a home, car, or anything else that requires a loan.

People who owe more money than they have in assets may wish to declare bankruptcy. This raises questions about how bankruptcy will impact their credit scores. Fortunately, in most cases, the news isn’t bad for them-by the time someone declares bankruptcy, there’s usually nowhere their credit score can go but up. In addition to that, the most widely used credit score, the FICO score, is calculated based on how someone matches up to other people in their demographic.

One of these demographics is reserved for bankruptcy filers, so people who have declared bankruptcy won’t be compared to people with good credit histories, only those who have also declared bankruptcy. As a result, filing bankruptcy may actually end up being a viable way to help improve your credit score, though it will still be virtually impossible to get a perfect score as long as bankruptcy is still present on your credit report.

After filing bankruptcy, there are other ways to help improve your credit score even more. The biggest one is to avoid the mistakes that caused you to declare bankruptcy in the first place. Obtain a credit card designed for people with poor credit, maintain a balance on it, and make more than the minimum payment each month. Pay all of your utility bills and mortgage payments on time. Over time, you’ll be able to rebuild your credit, and achieve a decent credit score.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

“One of the biggest benefits to filing for bankruptcy is the fact that the debtor gains certain protections under bankruptcy law. This can help protect a person’s car, house, paycheck, and even their sanity,” says Bert Briones, an Irvine bankruptcy attorney.

Filing for bankruptcy protects a person’s assets by keeping creditors from being able to seize them. Chapter 13 bankruptcy does this by restructuring debt and creating a three-to-five-year-long repayment agreement that both debtor and creditors must adhere to.

Chapter 7 bankruptcy does this by eliminating debt by selling off some assets in order to pay it off. Though chapter 7 causes debtors to lose some of their assets, it protects their other ones, like their homes.

In certain situations, some creditors can garnish a person’s wages in order to repay their debt. Though this usually doesn’t impact things like welfare or social security payments, some debtors may need to take extra steps to protect these forms of income, as well. Filing for bankruptcy can stop wage garnishment in its tracks, allowing debtors to keep their entire paychecks instead of losing them to creditors.

Once a person files for bankruptcy, creditors are subject to a restraining order that prevents them from continually harassing that person. Though there are laws that determine what creditors are and are not allowed to do or say when contacting debtors, a lot of them don’t abide by these laws very well, and many debtors are still subject to undue harassment from unscrupulous collection agencies.

Filing for bankruptcy makes it contempt of a federal restraining order for creditors to continue to contact the filer. This makes it a very attractive option for people whose daily lives are being negatively impacted by the amount of phone calls and letters they receive from their creditors.

When it comes down to it, bankruptcy helps both debtors and creditors. It helps creditors by getting them their money, and helps debtors by protecting them from harassment, wage garnishment, and having their assets seized. Though the decision to file for bankruptcy is a serious one that has long term impact on a debtor’s credit history, it is ultimately beneficial for the people who have a lot to lose.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/