New Bankruptcy Laws – Why To Think Twice Before You File Bankruptcy

At one point, filing bankruptcy was extremely easy, and generally hassles free. To begin with, the bankruptcy law was established to offer a new beginning to those who had financial difficulties. In April 2005, Congress made extensive changes in U.S. bankruptcy law with effect from October 17, 2005. Called the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,” it spells trouble for Americans struggling with debt problems.

This new bankruptcy law and thanks to those who abused the privilege, new bankruptcy laws are stricter and have more requirements than ever before.

Some Facts on Bankruptcy

1. Between 1995 and 2004, bankruptcy filings doubled, while in that same period, credit card industry profits tripled.

2. For people 60 or older, 85% of bankruptcies are caused by medical bills or loss of job.

3. A divorced woman is 250% more likely to file bankruptcy than a married woman.

4. Approximately half of all bankruptcies are filed because of medical expenses due to lack of health insurance and inadequate coverage.

5. The median income of bankruptcy filers is ,000.

Here is a look at some of the changes within the new bankruptcy law and how these changes may affect your decision to file bankruptcy.

Bankruptcy Law – Credit Counseling

Now, with the new bankruptcy laws, no matter rather you decide to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, you are now required to attend credit counseling. This must be done before you go to file for the bankruptcy, by a court approved credit counseling center.

You need to obtain a certificate and in some cases, a repayment plan. You will then have to submit all of this to the courts, as proof you have met the requirements under the new bankruptcy law.  Read more...

Tags: Bankruptcy, Before, File, Laws, Think, Twice

Check Your Credit Rating – The Reasons You Should Pull Your Report Twice A Year!

When it comes right down to it you already know that there are many reasons that you are judged by your credit every single time you try to make a financial decision and even for employment anymore.  This is why you have to check your credit rating at least twice a year.  There are many things that you have to understand about credit and why you have to keep yours under control and check it from time to time.  Here are some helpful credit tips for you.

1.  Understanding your Report

It would do you very little good to pull your credit report twice a year if you have no idea what it means and how to read it.  There are two basic categories that will consume the majority of your report, the paid on time side, and the not paid on time side.  The paid on time side will be listed first and it will have all the different debts, credit cards, and loans that you are currently paying on and you are on time with.  The not paid on time side will be all the different debts that you have ever paid on late, even if it was just one payment.

2.  What to look for when you check your credit rating

Your actual rating is also known as your FICO score.  This is what you are judged on and when you check your credit rating you need to be looking to see what is on your report.  You need to make sure that your report is correct and all the debts listed are yours.  If there are debts on your report that do not belong to you, then you need to contact the credit bureau and get these debts off your report.  Read more...

Tags: Check, Credit, Pull, Rating, Reasons, Report, Should, Twice, Year