Avoid These 10 Mistakes If You’re Going to File Bankruptcy

1. CONSOLIDATING MY DEBT IS BETTER THAN FILING BANKRUPTCY.

In theory, consolidating seems like a good and viable option. However, in practice, consolidation rarely works out, and experience shows that in the long run, people don’t save money but in fact it ends up costing them more.

2. DON’T WAIT UNTIL YOUR BROKE BEFORE CALLING AN ATTORNEY.

If you aren’t going to be able to catch up on all your bills and get ahead, you are wasting your money. Filing bankruptcy will get rid of all your debt. There is no point paying bills that will be wiped out anyway. Save your money to pay the fees of filing anyway, that will much cheaper than paying bills you can’t afford to pay.

3. BANKRUPTCY WILL RUIN MY CREDIT.

Really??? If you are unable to pay your bills, your credit probably already stinks. Filing bankruptcy is not going to make your bad credit any worse. To the contrary, by filing your credit will begin to rebound if you’re smart about building it after you file. Bankruptcy is a way to fix your credit and debt problems, it did not cause them.

4. DON’T PAY OFF YOUR PARENTS AND FRIENDS BEFORE YOU FILE.

Now I know what your thinking, it sounds wrong, but by not paying your family and friends you are actually saving them from a big headache and problems. In bankruptcy, the trustee (the person overseeing your case) can go after your parents and friends and take the money you have paid them to pay that money to other creditors. Your family and friends won’t be happy if you get them involved in a legal proceeding because you paid them.

5. DON’T PAY OFF YOUR CAR LOANS BEFORE YOU FILE A BANKRUPTCY.

By having a lien on your car, you protect the car in the bankruptcy. The trustee is trying to find any asset (like your car) you own that may be used to pay back your creditors. The loan on your car usually makes that option not viable and the trustee likely will not pursue the sale of the car.

6. DON’T TRY TO HIDE ANYTHING, DISCLOSE EVERYTHING YOU OWN.

Failing to list any property you own can potentially lead to criminal action against you for bankruptcy fraud and make it so you lose your discharge (the thing that wipes out all your debt) in bankruptcy. Plus, its like the trustee is magic, he usually ends up finding out about everything, it’s just not worth it considering the penatly you face if you’re caught lying.

7. DON’T PUT YOUR MONEY IN SOMEONE ELSES ACCOUNT OR GIVE THEM YOUR PROPERTY.

In the list of the worst things you can do when filing this may be 1(b) coming in just behind the one we just talked about. The trustee could very likely go take the money and property back. This goes for any transfer within a year of filing. Like number 6 above if you do this you risk not being able to have your debt forgiven.

8. DON’T LIQUIDATE YOUR RETIREMENT ACCOUNTS.

Your retirements are protected, by liquidating them you take them from being a protected asset to a general asset than the trustee can come after to pay debt with. You are still going to need retire someday so save if for what it’s there for.

9. FILING BANKRUPTCY DOESN’T MAKE YOU IMMORAL OR A BAD PERSON.

Look, this isn’t meant to be a phylisophical or religious statement. If you’re broke, your number one responsibility should be to your family’s needs. The law allows people to file bankruptcy as a way of dealing with debt. The creditors use the law to help themselves in the same way through tax subsidies, charge offs and law suits. Whether or not this is a justification for filing it’s the reality, it’s you’re right to file.

10. I DON’T HAVE A TENTH BUT THOUGHT TEN SOUNDED BETTER THAN NINE.

Take time to think about your options, but not too much time. You’re wasting your money and stress on things that can be taken care of so easily.

Credit Restoration Advices You Must Read

One of the best ways to improve your chances of getting a home loan is to improve your credit score. It is because better credit scores may give you access to better interest rates and more beneficial home loan products.

Here is a list of some quick tips to help you get the best possible credit score. While there is no guarantee that all of these options will immediately boost your credit score, they may help you establish habits that will strengthen your credit score.

Show you can pay your bills on time, every time

Lenders/credit providers will want to see that you can repay a home loan on time. So, here is a list of bills that you should pay on time, every time:

>> Your credit cards;

>> Your rent;

>> Your medical and utility bills; and

>> Any other service that may use a collection agency for the recovery of delinquent accounts.

If you miss a payment date by a few days, call the service provider immediately to make the payment, and don’t be afraid to ask the provider for a one-time forgiveness.

Check your Credit Rating

You should regularly check your credit report with a credit reporting agency (such as Veda Advantage and Dunn and Bradstreet), as it will:

>> Give you an idea if you have any defaults or negative repayments history recorded in your report;

>> Give you time to get the credit report corrected before a lender/credit adviser accesses your report; and

>> Enable you to verify your credit score with a credit reporting agency.

Note: You should be aware that due to the changes in the Privacy Act in March 2014, lenders/credit providers have the ability to access your credit reports and can see the past 24 months of your repayment history.

Maintain your Available Credit

Before applying for a home loan don’t open any other credit cards or lines of credit. It is because lenders/credit providers will see you as being a risk if you suddenly take out loans for cars, electronics, furniture, etc.

Also, refrain from closing your credit cards or other lines of credit. Instead, consider paying off your balances as a lower debt will improve your debt-to-credit ratio.

This is best illustrated by the following example:

Having a total debt of $4,000 with a $20,000 available credit will look better than having just $500 in debt with $800 available credit.

Establish a Savings History

If you are borrowing more than 80 percent of the purchase price of the property, you will be required to meet the “genuine savings” requirements of lenders/credit providers. Your savings will need to add up to around 5 percent of the purchase price of the property.

For example, on a purchase price of $700,000, you will need to have savings that add up to $35,000.

Note: Saving a larger deposit should help to reduce or avoid paying “Lenders Mortgage Insurance” (LMI) and you may even be offered a more competitive interest rate by the lender/credit provider.

Avoid applying with too many Lenders/Credit Providers

Avoid submitting your home loan applications to several different lenders/credit providers at once. It is because these loan applications will appear on your credit report. You should only submit your home loan application:

>> After you have compared lenders/credit providers; and

>> After you have decided to go with a particular lender/credit provider.

Your Employment Stability

If you have had the same job for several years, then this is a big tick. So, prior to applying for a home loan, Try to establish a stable employment history as it will enable you to make regular loan repayments.

If you have changed your job recently, do not worry. You may satisfy the requirements of lenders/credit providers, if:

>> You have been in a similar role; and

>> You have been in the same industry.

Disclose all Information

Lenders/ credit providers may think that you have other debts that have not been disclosed. So, always be upfront and disclose all information as non-disclosure of relevant information may result in your home loan application being declined.

Seek Expert and Professional Advice

All these tips should help you to improve your credit score. However, you should speak to a professionally qualified and expert finance broker who can help you to create a personalised credit improvement plan. Establishing this relationship with a finance broker will help you to determine which potential lender/credit provider best meets your needs.

All the Best!

Networking Untouchables

As the word suggests, there are characters in networking that should not be approached. Networking involves building relationships, learning about others, professional and business development. But along the way, these objectives and goals can be skewed and result in not so successful outcomes for the savvy networker. This article is designed to identify those major hazards and avoid them at all costs.

Listed below are a few helpful tips for navigating around these types of personalities and getting the most productivity out of your networking.

The Quota Networker

This personality type is merely interested in making a quota. Usually a short term goal, they are more focused in gaining a sale, a new client or promoting a product, service or event. Although it is great to use networking and marketing to promote agendas, this personality trait takes it to the extreme. Sometimes, they can lure you in by asking you to a one on one meeting for investing or working opportunities. But the bottom line is reaching that quota. In turn, you are seen as a number or a figure rather than a human being. Warning signs include conversations focused on getting the bottom line or dialogue focused on incorporating into their team. Kindly decline the offer and move along to the next person or connection at a networking event.

The Selling Networker

This particular type just wants to make a sale. Almost similar to the personality type above but much more aggressive. Their view is to sell at any cost. Offering discounted rates, affiliate opportunities and other perks to seal the deal. Once again, networking is great for building business but that should not be the main focus. It is about building relationships and trust as well as camaraderie. This type of aggressive behavior is a huge and unwelcoming turn off. It can instantly shatter your credibility and future opportunities of doing good business and maintaining a healthy professional relationship. If you notice this type of personality, suggest changing the direction of the conversation and focusing on shared interests, overlapping networks or the actual networking event.

The Negative Networker

This personality type is only focused on the negative aspects of networking. They were probably recently laid off, had a career set back or find networking within itself challenging. Their conversations lead towards the not so bright side of networking. Although networking is not always rosy, it is still a useful and powerful business and social tool for advancement. It involves lots of dynamics for success, productive and profitability. If you do encounter this type of personality, show a little empathy and suggest the positive side of networking. Engage them in uplifting conversations and solutions to their current networking or career dilemmas. Many times, a different perspective can change the minds set of this particular personality type.

Hopefully, these few tips will lead you in the right direction for your networking efforts. Once you have spotted these types of personalities, proceed with caution and make the necessary adjustments to have a successful networking event.

An Efficient Financial Rescue Plan

Consumer Debt Picture Painted By the Data

To imagine the situation the quotation of data would be greatly helpful. The statistic shows the following debt details of an average household.

A general household owes $15,609 in the credit card sector. It rises 1, 000% when it comes to the mortgage debt and $1,567,006 to be exact. At the end the same figure that is $1,567,006 is associated with student loan debt. The figure depicts that all of the American’s liability of credit card stands at $885 billion.

If we talk about mortgage debts, then it is valued at $8.2 trillion. If we see the fiscal liability in the field of student loan, then they owe $1.8 trillion collectively. This figure is 7.5% greater than the last year. If all these debts are combined, they result in the staggering amount of $11.91 trillion.

Nuts And Bolts of the Rescue Strategy

The following lines deal with strategies that aim at emancipating you from the shackles of the debt. To reach this particular target, you may have to opt for the following programs. You will have to sign a contract to embark upon this part of the modus operandi.

Once agreed, the service provider will be responsible to debate the settlement and final discharge of your unsafe liability, of course on your behalf. In the second place, there comes the Debt Resolution Hardship.

It involves support from an attorney. An attorney will make the possible plan by bearing in mind the exclusive dynamics of your particular situation to pay your debt. This task will need your participation as well.

In the end, let’s talk about the Legal Plan. This will be available for the debtor who wants to use a debt settlement program. There are some plus points attached to this phase in particular. This will enable the signed-up debtor to get the legal documents reviewed. Next, Defense shield too will be available in a creditor lawsuit. Then, none of the court filings will be the debtor’s headache. The last advantage will be of complete court presentation.

Salvation Time Frame

Preparing your credit report is also an important part of the rescue plan. Firstly, the report will identify information. Secondly, it will bear the credit and public record information. Lastly, it will be mentioning recent inquiries. The estimated span of time fluctuates from 12 to 45 months, but it should consider your individual situation.

Take a Day to Organize Your Finances

If you’re like most people, you periodically set aside time to clean out your home, garage or closets. It’s equally as important to take time to organize your finances. The following checklist can help you get started:

· Cancel unused credit cards – If you’re paying an annual fee on a credit card or other account that you don’t use, you’re throwing money away. So, cash in any rewards points you have earned and then cancel the account. Of course, take into consideration whether canceling the card will negatively affect your credit rating.

· Cancel unused memberships – If a new at-home exercise routine has replaced your trips to the health club or gym, or if you’re no longer playing golf at a course you belong to, consider canceling your membership. Even if you have to pay a fee, you may quickly recoup your financial losses.

· Consolidate accounts – You don’t necessarily need multiple checking, savings, investment, retirement or credit card accounts, yet many people maintain them – often because it takes extra time up-front to consolidate. Maintaining numerous accounts can increase the amount of time you spend opening mail, reconciling statements, keeping records and paying bills. When it comes to credit, you may also earn more rewards if you stick to one or two cards.

· Negotiate better deals with your service providers – Whether it’s your cable, Internet or waste removal company, chances are you can negotiate a better rate. Simply take time to get quotes from competitors. If they are offering lower rates for the same services, go back to your service provider to see if they will price match to keep your business. If not, switch to someone new.

· Update your financial records – Make a list of your current financial accounts, contacts and passwords. Keep this information in a safe and secure place.

· Update your beneficiary designations – Your beneficiary designations override your will. So, if you’ve experienced a marriage, divorce, birth, adoption or death, make sure your beneficiary designations reflect your wishes.

· Review your home and auto insurance coverage – Make sure your coverage reflects your present needs. Also, price shop the same coverage with different providers. Whether you switch to a new provider or use this information to strike a deal with your current provider, you could save a significant amount.

· Simplify your investments – If tracking various investments is stressing you out, consider asset allocation or managed accounts. Attempting to manage and track too many investment accounts can require a great deal of time and, if you’re not on top of the details, can prevent you making the best investment choices for your portfolio. Consider working with a financial professional to help you organize your finances and help you determine what kinds of investments might work best for you.