credit Tag

28 Sep Top 15 Myths Of Bankruptcy (Unless You’re Counting) Part One

TOP 15 MYTHS OF BANKRUPTCY (UNLESS YOU'RE COUNTING)
1. YOU CAN T FILE BANKRUPTCY UNDER THE NEW LAW
*FALSE - The "new" law (actually effective in 2005) put some hurdles in the way of filling for bankruptcy, but the effect is just to slow you down to give your creditors more time to pick at you before you file. Filing is just as possible as it was before. If you are in financial distress, consult with a consumer bankruptcy attorney before you do anything to get the al facts.
2. YOU MUST BE BEHIND IN YOUR BILLS OR BROKE TO FILE BANKRUPTCY
FALSE - If you are facing distress over your bills or see it coming down the road, do not wait until it is an emergency. With proper planning, you can avoid the stress of lawsuits, judgements and wage garnishments.
3. YOU CAN T WORK AND FILE BANKRUPTCY
FALSE - In fact, you should have income if you expect to be able to meet your living expenses. The purpose of bankruptcy is to give you a fresh start. What better way to get a fresh start than to have a job that pays for food, shelter and necessities rather than depending on government handouts.
4. YOU WILL LOSE MY HOME IF YOU FILE BANKRUPTCY
FALSE - If you have a mortgage and can afford to pay that mortgage, there is no reason the bank will try to take your home. If you have equity in your home in excess of the mortgage, each state has different levels of protection for homes. Connecticut's state exemption is $75,000 of equity per homeowner ($150,000 of equity for married couples). This is measured in addition to your mortgage balances when compared to your home's value.
5. IT WILL DESTROY MY CREDIT IF I FILE FOR BANKRUPTCY, MY CREDIT SCORE WILL GO DOWN
FALSE - If you are facing financial distress, your credit score probably has already gone down. The exact measure of a credit score is unknown, but just having too much credit outstanding even if current can reduce your credit score.
1. YOU CAN'T FILE BANKRUPTCY UNDER THE NEW LAW

FALSE - The "new" law (actually effective in 2005) put some hurdles in the way of filling for bankruptcy, but the effect is just to slow you down to give your creditors more time to pick at you before you file. Filing is just as possible as it was before. If you are in financial distress, consult with a consumer bankruptcy attorney before you do anything to get the al facts.

2. YOU MUST BE BEHIND IN YOUR BILLS OR BROKE TO FILE BANKRUPTCY

FALSE - If you are facing distress over your bills or see it coming down the road, do not wait until it is an emergency. With proper planning, you can avoid the stress of lawsuits, judgements and wage garnishments.

3. YOU CAN'T WORK AND FILE BANKRUPTCY

FALSE - In fact, you should have income if you expect to be able to meet your living expenses.

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31 Jan Are Credit Card Offers Of Zero Percent A Good Deal?

Have you received an offer for 0% financing from your credit card lately? A careful look at the terms of such offers reveal the continuing traps of the finance industry on consumers. Time for some grade school math and a different way of looking at the world.

Consider the offer of zero percent for six months. Free money, right? Such offers usually contain a service fee of 3% of the money advanced. So a consumer who takes advantage of a $1,000 offer will pay $30 for the privilege. A three percent fee is equivalent to a 6% annual interest rate. ($1000 x 6% for one year 6 months = $30) That is to say, if you borrowed one thousand dollars for six months at six percent, you would pay thirty dollars in interest. It is one and the same.

An offer at 2.99% for the same time is not the same. If you borrowed the same $1,000 for six months, you would only pay $15.00 in interest. Which is the cheaper deal, 0% or 2.99%?

The real problem is what happens after the "special" deal ends.

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