financial Bind

Couple of days ago I werecked my car. I\'m still paying on owing 7300 I didn\'t have insurance on it. I haven\'t heard from the other insurance company from the car that i hit. I was just getting things under control now i feel as if i can no longer handle it is bankruptcy a consideration

Bankruptcy is always a consideration however, it may be that you have bigger issues to deal with before hand. In many states it is a manditory lending requirement for insurance coverage on a chattel (Your financed car). In some other states it it no fault. Not knowing where you are from does not allow me to answer completely. I would likely seek out a litigation attorney or legal aid.

What is Equal opportunity lending

Question? I have heard of this and I think I am being discriminated against when I apply for a loan.

According to the U.S. consumer protection act- Equal opportunity lending is based on the same priciple as Equal opportunity employement. Simply lenders are not allowed to discriminate against or prejudice an individual regardless of race, creed and religious convicitons. Everyone can apply and should be given the same considerations in reviewing credit and loan worthiness. If you suspect a discrimination issue at your lender then ask them for a copy of their consumer lending guidelines.

New credit counselling requirements

As of October 2005 a manditory credit counseling directive was issued by the US Dept of Justice basically stating that prior to filing a Chapter 7 or 13 personal bankruptcy the individual must be counselled by a certified counsellor. This initiative is a good thing because it will guide and direct and individual to better understand the process and allow a Means Assessment to see all of the individuals options in being able to fullfill the terms of the particular bankruptcy. For more information brouse our Bankruptcy America.com FAQ page.

Bankrupt Owns a home, but has a high debt/low wage ratio

Question: My husband and I are in an extreme amount of debt that has built up over a number of years. Periods of unemployment have not helped. We both have very low paying jobs. (one is min. wage,and neither one of us work 40 hrs.) But our credit card debt is around $28,000. We do however, own our home, debt free. Is there help for us since we own our home? Is it possible for us to go bankrupt while owning a home?

Answer: Thank you for your question.. It is possible to file Chapter 7 bankruptcy and keep your home.. It does however depend on your state you live in and decide to file in. There is such a thing as an homestead exemption that caps the value of your assets in real estate. You will have to proceed with a Means Test which will determine your situation on a daily basis. It may well be that with the debt load you carry you may just want to do a Home Equity loan and pay out your debt that way. We suggest you use our free bankruptcy evaluation; a bankruptcy attorney will contact you, from your state, to help you decide whether or not bankruptcy is the correct option for you.

What is a default interest rate?

A default interest rate is the rate charged when you fail to pay according to the agreement you signed when obtaining your credit. For instance.

If you fail to pay the minimum balance on your credit card this month. You may have paid some sort of interest penality in the past on maintaining your balance, but if you do not pay anything then the card company issues a Default Interest rate to the maximum published as a big penalty. They will usually access this larger rate for a period of 3 months after you bring your account into "Good Standing"

Credit cards can be tricky things, especially when you inadvertently miss a payment. The interest is charged from the begining of the period you borrowed the credit, not from the point from which you defaulted... Costing Americans millions of dollars per month in excess charges. Big business, Big money... Read and UNDERSTAND the whole card holder agreement. Contact us at Bankruptcy-America.com for more indepth information.

Wht is a default interest rate?

Students and Credit Cards

Greater numbers of students will be lured into the Wonderful World of Credit and Debt by telemarketers, Point of Sale People and direct mail than in 2006. Why?

One of the answers is that the Finance companies believe that is a student uses his/her credit card in a manner that racks up the balance and fees that Mom and Dad will dive in and bail them out.

Another is that they will be able to pay the minimum payment on a small credit limit long enough for the Finance companies to gain a decent rate of return on interest, overlimit and service fees before default.

In practical terms the use of a credit card for student purposes need not be when other methods of money movement are available. For more information or commentary please let us know at Bankruptcy-America

Happy New Year and here comes the bills!

New Years Resolutions usually bring more than vailed promises... They bring the reality of Christmas Bills via Credit Card or Line of Credit.

A couple of suggestions: (1) be brave and open all of your bills and statements when you get them.. Quite often Credit Card companies will insert some value added promotions in their January statements that will ease the burden of payment. Deferred balances, payment holidays, Balance transfer options are all part of the package in some cases. If you dont open the bill you might miss the opportunities.

(2) Priortize Payments: take care of your home utilities bills first and pay everyone something if you can not pay them off entirely.

(3) Call your creditors: Say hi and Happy New year! this tact will allow you to be upfront and personal with the Customer Service folks and they might just have some suggestions similiar to the above to help out.

(4) Af you find you are drowning, contact a bonifide Credit Counsellor and get some more advice. Bankruptcy-America.com can help too.