Bankruptcy Debt Relief

Bankruptcy debt relief can be a quick fix panacea that has people who are drowning in debt dreaming of a new life and a new start and finally being able to face the day again. We'll give them one thing: it will be a new day tomorrow and the next day and the next, but that's all. A long time ago, some sociologist developed the top five negatively life altering events a person can go through. They include divorce, death of a loved one, a disability, a severe illness and finances. A lot of people are so loaded with fiscal obligations that every day is taken up with thinking about and brooding over how to escape. Borrowed money mountains can be so high that marriages crumble, jobs are lost and depression sets in like fog in a valley.

Bankruptcy debt relief comes in two forms: chapter seven and chapter eleven forms. Chapter seven is the waving the white flag and fully surrendering to the supposed inevitability of never getting out of the hole. Chapter seven could be akin to putting a tuna fish sandwich in the microwave and nuking it for sixty minutes. There just isn't much left to feel good about. The chapter seven brand takes away most of a person's possessions in order to cover creditor obligation.

In each state, the possessions that are allowed to be kept are widely varied in a bankruptcy debt relief court ruling. A few states have an entire home protected, but in most states, only a small part of equity can be maintained. A few states will allow cows and pigs to be kept but only cars valued fewer than two thousand dollars. Another state will allow saddles to be kept and an ATV for each family member, but all states will allow family photos and bibles to be given to the filer of bankruptcy. Most of what can be saved in a bankruptcy filing can be put in the back of a small U-Haul. And the worst thing about this severe action being taken is the ten year "Financial Failure" sentence it brands on a credit history report.

Can a person get credit again after a bankruptcy debt relief filing? Not from banks and credit unions, but there are guaranteed predatory lenders who will take the risk of a bankruptcy filer and lend money, but the interest rates will be astronomical. This translates into the same mess that was created before the bankruptcy filing unless the debtor has learned the all important lesson of living within one's income means and eliminating or harshly limiting credit card usage. A number of people want to write God glibly out of their lives, professing that somehow there is no proof of His existence. But the bible tells us that's quite impossible when it says, "For the invisible things of him from the creation of the world are clearly seen being understood by the things that have been made, even his eternal power and Godhead; so that they are without excuse." (Romans 1:20)

Chapter thirteen bankruptcy filing is like a kid on a rollercoaster for the first time. He wants to get off the ride because he's nauseous, but is anxious to try it again. Chapter thirteen bankruptcy debt relief allows the filer to keep his assets because he is willing to pay his debts but can't do it under the present conditions. The filer petitions the court to allow for payments to be spread out over a much longer period of time, therefore lowering the monthly debt obligations. But whether it is chapter seven or thirteen, the results are the same in terms of how creditors will look at the one who sought legal relief.

Credit scores are a product of a number of factors. These include the consumer's payment history, the amount on each debt account and how close each account is to its debt ceiling, the length of the credit history, the types of loans in that history and the credit applications or inquires made on that account in the past two years. A bankruptcy debt relief legal action puts a huge smear across the pages of the history, affecting a person's ability to get low car insurance rates, rent an apartment, buy a house, get friendly interest rate loans and even in some cases, to get a job. And for the one who wrestles with ethics and morality, the question can lay heavy on the heart. Can a person walk away from obligations that he willingly and gainfully agreed to pay earlier?

Before seeking any sort of bankruptcy debt relief legal move, how about considering the following suggestions? First, sell everything one has except food, a few items of clothing, a beat up car and truly personal items; a personal item would have to be defined as something you would want put in the casket and jewelry and a bass boat don't count. Get some used lawn furniture for the living room and live the monastic life for the next five years. Put all of the sale money on one's debt principle and have a long talk to yourself about how the unwillingness to live within the income one possesses has put you in that situation. Get a second job and work nights and weekends for the foreseeable future and put all earnings on the highest interest accounts first and talk to a credit counseling agency before filing for bankruptcy debt relief.

Self Help Free Debt Elimination

Self help free debt elimination strategies are exactly what most people who have credit cards and other unsecured loans desperately need in order to satisfy creditors, avoid bankruptcy, resolve potential collection lawsuits, wipe out obligations, and repair credit. These options can assist consumers in all areas of credit resolution provided they are informed, committed and careful. Information abounds throughout Internet sources, libraries, television, radio and advertisement mail that claim to have the one-two punch for debt resolution. Desperate consumers sometimes can quickly grab a particular program and end up in as worse financial situation than before, if a few guidelines are not wisely followed. "For what is a man advantaged, if he gain the whole world, and lose himself, or be cast away?" (Luke 9:25)

Many financial management programs shout their wares to consumers promising to make life easier by offering quick fixes to personal financial problems that took years to development. By the time an individual realizes the severity of their financial situation; a self help free debt elimination strategy may or may not be the answer. Generally, reasons for consumer debt that leads to the need for help, falls into three main categories that can help determine what direction in debt resolution a consumer should take. Some debt is accrued over time simply because of a lack of understanding about financial management for household budgets, unsecured and secured loans, investments, retirement and education options, and insurance options.

Lack of financial knowledge can be the first step to household financial disaster in today's easy lender marketplace. Self help free debt elimination is difficult in cases of remedial financial education. Another reason for consumer debt is simply the lack of personal and household discipline regarding finances. No amount of financial knowledge and expertise will stave off mismanagement of funds, if an individual does not have some measure of self discipline. In the media saturated environment of modern society, it is difficult to resist the seduction of materialism.

Eliminating current obligations does not guarantee that life will not have its unwarranted and unexpected difficulties even with the best of financial planning. Unexpected catastrophes such as job loss, divorce, medical bills, and other impossible to foresee circumstances can disrupt the best laid plans leading to a need for self help free debt elimination. Thankfully, information and strategies can be obtained through Christian financial sources, non-profit agencies, and other financial sources. Beware, however, of all that seems 'free'. Many programs have hidden charges that will only create more financial frustration. It is possible to get out of debt and remain financially free through self-help programs, but it does take a lot of commitment and financial education.

Personal budgeting software is for people who are trying to develop and stick with a workable budget so they can pay down their debts, save for the future, and manage their money wisely. These programs can be extremely effective and easy to use. Individuals and families who are in debt and need help getting out, as well as people who are simply looking for a better way to organize their household budgets, will find budgeting software extremely helpful.

Once upon a time, many families budgeted through the envelope system. Each envelope was labeled (rent, phone, groceries, car repairs, vacation, etc.) and the week's pay was divvied up accordingly into the envelopes. If they wanted to go out to a movie, they checked the entertainment envelope. It's empty? Well then they stayed in. Although this seems simplistic, it worked. Today, with the widespread use of credit cards and debit cards, people don't keep close track of their spending. It's very easy to forget about that $20 ATM withdrawal or that lunch at the diner. This can lead to careless spending and, often, debt. For this reason personal budgeting software is becoming very popular. Many people have used these programs to get a better handle on their finances, making it easier to get out of debt, save for the future, and increase wealth. "But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day," (Deuteronomy 8:18).

There are many different kinds of personal budgeting software programs. Consumers should research the benefits of each before choosing one. Many feature special tracking tools that allow them to see exactly where the money was spent. This eye-opening tool lets people see at one glance how much money is likely being wasted each day--money that could be used more wisely to pay down debt or invest in the future. Speaking of investing, some of these programs also have investment calculators tools to help determine retirement strategies and goals. Another excellent feature of some programs is an automatic bill payment service. This means never worrying about postage stamps or late fees.

Perhaps the best thing about personal budgeting software programs is that using one puts people back in control of managing the household budget. A counseling agency isn't needed to to make payments. A debt service isn't needed to settle debts (which damages credit ratings). And lawyers are not needed to file for bankruptcy. Too many people let their finances spiral out of control to the point where these step are inevitable. Using a budgeting software program is a proactive step to putting people on the road to financial stability and wealth.

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