Information on Online Bankruptcy

Filing bankruptcy is a process that can help you get out of debt and get your financial life back under control. One of the ways that you can do so is to use an online bankruptcy filing service to help with the process. This can provide you with some benefits, like lower costs, but you may not get the personal service that you need.

Online Service

Even though you might work with an online bankruptcy service, this does not necessarily mean that you can do everything online. To file bankruptcy, you will have to go to your local bankruptcy court to process the paperwork. The online bankruptcy service is simply going to help you fill out your bankruptcy forms instead of working with a lawyer. With this strategy, you can pay the online service a flat fee to have all of your paperwork done.

Cost Savings

One of the benefits of using an online bankruptcy preparation service is that you can save money. With this strategy, you can pay a low, flat rate and complete all of your paperwork. By comparison, if you hire a lawyer to help you complete this process, you might have to pay for many hours of assistance. Paying a lawyer for this might be unnecessary if you can get the whole thing done from an online bankruptcy preparation service.

Help Needed

Many people wonder why they would need any help at all when filling out paperwork for a bankruptcy. While you could potentially complete the entire bankruptcy process yourself, this may not be in your best interest. For example, you will most likely have to fill out many different pieces of paperwork to complete the process. If you do not complete one of the forms correctly, part of your debt could be challenged during the case. By having professional help throughout the process, you can eliminate the odds of making a mistake.

Personal Service

One of the drawbacks of using an online bankruptcy preparation service is that you may not receive the level of personal service that you need. When engaging in the bankruptcy process, it can be very time consuming and confusing. With a trusted guide on your side, such as a lawyer, it can help you throughout the entire process. If you have any questions about the bankruptcy, you can simply ask your lawyer and he should be able to assist you with the process.

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How to Build Credit for the First Time

No matter how great your sense of humor is, how much education you have or how well you can cook, all a lender is going to see to make a judgment about you is your credit history. This is why it is vital that you build a good credit history early on in life. Your credit impacts more than just your interest rates on credit cards and loans. Poor credit can cause you to be turned down for an apartment, cell phone or the job that you want. Unfortunately, building credit when you have no credit can be tricky. There are, however, steps you can take to successfully build credit for the first time.

Instructions

1

Ask a friend or family member with good credit to add you to his credit card account as an authorized user. Your friend or family member's good payment history on the card will then appear on your credit report.

2

Apply for a secured credit card. Secured credit cards are primarily marketed to those with bad credit or not credit. Your credit rating, or lack thereof, should not factor into your approval. Secured credit cards are safer for credit card companies because they are "secured" by a deposit you must make to the card provider. You may apply for a secured card online or via mail.

3

Use your secured card to make small purchases and pay the balance off in full each month. Doing so helps you build your own positive payment history in addition to the payment history that appears within your credit profile from your friend or family member's credit card account. Continue making purchases and payments for 90 days to create a limited credit history.

4

Visit your bank and talk to a loan officer about taking out a small personal loan and securing the loan with a savings account or car title. A secured loan is less risk for the bank. Your positive credit profile, no matter how limited, also works in your favor.

5

Apply for an unsecured card after making regular payments on your secured credit card and your bank loan for at least six months. The longer and better your credit history, the higher your chances of acceptance. Unsecured credit cards often offer much more attractive interest rates than unsecured cards.

6

Make payments on time to each of your creditors. Your payment history on each of the debts that appear on your credit report accounts for 35% of your credit score.

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How To Avoid Judgments

A judgment occurs when a creditor who is owed money for a legitimate debt has been trying to collect and has been unsuccessful. As a last resort, the creditor will go to the court and ask for a judgment against the person or entity who owes them money. A judgment is filed by the court against the debtor for the amount of the debt, where it goes in county records and is put on the debtor's credit report. Judgments, even when paid, stay on your credit report for 12 to 20 years and can seriously affect your ability to get a loan or buy a home. There are ways to avoid judgments, but they involve an ounce of prevention.

Instructions

1

Obtain a copy of your credit report to become aware of your debts. A lot of people are not aware of joint debt with spouses, or have forgotten about old debts that could come back to haunt them. Creditors have seven years before the statute of limitations wears out and the debt is no longer legitimate.

2

Talk to your creditors, taking notes on who you spoke to, what was said and when you spoke. It's never pleasant to talk to someone you owe money to, but avoiding the problem doesn't make it go away. It leaves the impression that you don't care and forces a creditor to take action.

3

Come to a settlement. Since getting a judgment against you does not guarantee they will ever get any money, most creditors are happy to make an arrangement. It could be paying a reduced amount or it could be a payment plan.

4

Get the agreement in writing. This protects both of you and keeps you honest.

5

Stick to the plan and keep receipts you receive; or copies of the cancelled checks or money orders you used for payment. As long as you are fulfilling your end of the agreement, then they cannot take any further action against you.

6

Dispute any further negative reports on your credit that occur after your agreement using your proof of payment and a copy of your agreement. If they try to place a judgment, you will have the opportunity to show that you have an agreement and that you are paying according to schedule.

7

Talk to an attorney if you have a lot of debts against you and have no way to repay. You may wish to consider bankruptcy before those debts become judgments. Bankruptcies are a way to start fresh and impact your credit for less time than a judgment does.

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About Student Loan Payments

College is expensive, and for this reason alone, many college students rely on federal and private student loans. Qualifying for a student loan is relatively simple, and government loans don't involve credit checks. Thus, people with bad credit or no credit history can obtain a student loan. And the best part, federal and private student loan lenders offer flexible repayment plans to accommodate borrowers.

Function

Federal and private student loans are extremely useful. Without them, many people would be unable to attend a college or university. Some people pay their college expense out-of-pocket or rely on credit cards. But this is a quick way to deplete one's savings account or accumulate debt. Federal and private student loans help persons who don't have the money to pay their college tuition. Additionally, student loans are often used to pay rooming expenses and other miscellaneous college expenses such as books, supplies and lab fees.

Types

Student loans feature different types of repayment plans. A standard repayment plan reduces the balance within 10 years, and the monthly installment payment remains the same for the life of the loan. A graduated repayment plan offers lower monthly payments in the early years. Payments gradually increase over the life of the loan--approximately every two years. If unable to afford the payment on a standard or graduated payment schedule, you can select an extended repayment term, in which you pay the least amount possible each month. In this case, it can take up to 25 years to pay off a student loan.

Time Frame

The average student loan has a 10 to 15-year term. However, student loan payments are negotiable, and most lenders are prepared to offer a lower monthly minimum and extend the loan term. What's more, payments aren't required until after graduation. Student loan lenders grant a 6 or 9-month grace period. This gives graduates ample time to secure employment and adjust to their new expenses.

Features

Student loans feature a provision to help financially strapped individuals. If you can't pay your student loan for one month or several months, federal and private lenders offer two options. You can request a forbearance, in which the lender temporarily postpones monthly payments for a specific period. During this time, payments aren't required, but you incur interest. In the case of deferment, lenders also temporarily postpone payments. However, you don't incur interest.

Expert Insight

Unlike other debts, a student loan cannot be included in a bankruptcy. Once you apply and receive money to attend school, the debt stays with you for life. Additionally, failure to repay a student loan can have a negative impact on your credit score. Student loan lenders are flexible, and they're willing to work with borrowers. Communication is the key. Rather than skip or submit late payments, contact your lender and work out a new payment plan. They'll likely modify your due date, reduce the monthly minimum or approve a forbearance request. Thus, you're able to maintain a good relationship with the lender.

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How to Fight Home Foreclosures

When the reality of losing your home hits, it can be easy to think that there is nothing you can do to fight foreclosure. Depending on how far along in the process it is, there are specific steps you can take to ensure you keep your home.

Instructions

Fighting a Home Foreclosure Early in the Process

1

Renegotiate your loan with the bank. No one wins in a foreclosure situation and your bank may be willing to renegotiate payment terms. Your options include asking for a payment holiday, making partial payments until you get back on your feet, or refinancing the entire loan.

2

Ask your local Housing and Urban Development office for help. There are numerous government programs in place that can help you fight home foreclosures. From homeowner grants to low-interest loans that will take care of the amount that you owe in arrears, HUD can offer several different options for assistance.

3

Ask family or friends for help. If you are only a few months behind, a small loan may be enough to help you fight home foreclosures. If you do get assistance from friends or family, it is vital to set up a repayment plan that you can easily stick to. This will help you avoid straining these relationships. The repayment plan needs to factor in interest for tax purposes.

4

Sell your home. Often called a "short sale," in many cases this process can can help stop a foreclosure. The main problem with this tactic is that it can take months to complete a sale. This method is best if you are just starting foreclosure proceedings.

5

Refinance your home loan with a different bank. If your credit is still in good shape, you may be able to qualify for a loan with another bank. Be advised, however, that this process can take three months or more.

6

Seek assistance from Freddie Mac or Fannie Mae. Congress recently passed the Housing and Economic Recovery Act, which will provide these two lenders with special funding that could assist more than 400,000 homeowners facing foreclosure. Not everyone is eligible for assistance, but this avenue should be explored before foreclosure proceedings begin.

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Can a Creditor Take My Car?

Creditors can take your car, your house, your bank accounts, your boat and anything else of value that you own. Of course, to accomplish this, the creditor needs a judgment issued against you by a court for the seizure. If the creditor is the loan holder for the car and you default on the loan, the circumstances are different and different laws apply. In this case your car would be termed repossessed instead of seized.

The Process

If you owe a debt to a company, they can sue you to recover what you owe. If the creditor wins the lawsuit, the court issues a judgment against you. With this judgment, the creditor can request a wage garnishment order and he can also file an asset discovery. You will be served with a discovery of assets questionnaire which you must answer truthfully to avoid the risk of being held in contempt of court. The questionnaire attempts to discover what you own and its potential worth. With this information, your creditor can get an execution of the seizure order from the judge and seize your car.

Repossession

If you default on your car loan, your creditor can have your car repossessed. Your creditor typically does not have to go to court to repossess your car, as the loan contract generally delineates what will happen if you default on the loan. Usually the creditor has a right to repossession. Your creditor also has the right to sell your loan contract to a third party and the third party then has the right to repossession. When the creditor repossesses your car, he cannot do so with force or use any method that would cause a breach of the peace. What constitutes a breach of peace varies from state to state.

Exemption

If your car is in danger of being seized due to a judgment being issued against you, there is still hope, depending on the worth of your car. You are allowed to keep your car if its value is less than an amount set by state law. This limit varies from state to state. If your car's value qualifies as exempt, your creditor cannot seize your car.

State Variations

Seizure for judgments and repossession for defaults are both covered by state law. As such, the laws vary from state to state. For example, an act that is a breach of the peace in some states can mean the use of physical force, while in another state taking the car out of the garage can constitute a breach of the peace. If there is a breach of the peace, you may have an actionable claim against the creditor in court. Check with your state for your rights under repossession.

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How to Help My Husband Rebuild His Credit

When one or both members of a couple has bad credit, it can increase stress on the marriage. Managing your credit and debt is a good way to take a step toward financial freedom and a happier marriage with fewer worries. If you want to help your husband rebuild his credit, the most important thing to remember is to stay positive. When people have bad credit or a lot of debt, they often feel overwhelmed by the entire process of rebuilding their credit. This is, of course, the perfect time for a loved one to step in and offer help.

Instructions

1

Help your husband get a copy of his credit report. Everyone is entitled to a free credit report. As per the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act, credit reporting companies like Equifax and Experian are required to provide everyone with a free copy of their credit reports once every year. The information that will be included on the credit report will include identity and employment information, which you should make sure is accurate, as well as payment histories, matters of public record, such as bankruptcies and foreclosures, and any credit agencies that have inquired about the credit report.

2

Contest any possible errors on the credit report. All accounts, for instance, might not be listed on the report. Credit reporting companies might be able to add any open accounts not listed on the report for a fee. If there are any items on the report that are contestable, your husband has the right to dispute them.

3

Talk to your husband about the ways he can rebuild his credit. He can contact credit agencies, for instance, to prevent any accounts from being turned over to debt collection agencies. He can pay off collections and outstanding accounts and rebuild new accounts in small, manageable ways.

4

Make some time together for budget planning. This can prevent you and your husband from getting into any more debt in the future. While it's good to have a credit card handy for emergencies, it's even better to have an emergency savings fund ready to pay off any emergency expenses as soon as possible. Making a budget can help you save money. Budgeting is also important because it can help you manage your credit. You can improve your credit score by budgeting the amount of money you want to spend on food, a necessary expense, purchasing it with a credit card, and immediately paying it off before any interest accrues on the purchase.

5

Visit a credit counselor. Credit counselors can help you make a debt management plan and negotiate with creditors. Make sure you are dealing with a legitimate, legally licensed agency. Get quotes of their costs and fees in advance.

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