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Informative Articles

Accepting Online Credit Cards
When you opened your new business, you thought that everything would be fairly straight forward. After all, businesses every day complete credit card processing, online credit card approval, and internet business. But finding the right way...

Applying For A Credit Card With No Credit History
Oddly enough, not only will bad credit work against you when applying for a loan or a credit card, but no credit will too. Even though this doesn't seem fair, it is the way things work in the complicated world of consumer credit. Lenders are leery...

Credit Repair Services vs. 'Do-It-Yourself' Credit Repair
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Grants, Loans, "Free" Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth
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Reducing Credit Card Debt
Great as credit cards can be, one of the easiest "things" that can happen in life is the building up of a large credit card debt. For whatever reason, making purchases with credit cards always seems much easier than spending cash to obtain a...

 
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Lawyers are not always a Solution for Credit Repair and Credit Building

Lawyers often charge high fees to help individuals get out of debt. Credit repair clinics are available to assist individuals with debt relief, but only the absolute desperate would even consider these types of solutions. So, if this is not the solution for repairing credit, then what is?

Many people that suffer from bad credit often wallow in a pond of self-pity believing there is no escape. Most people sit around waiting for the miracle that came to their neighbor's door to hit their door. The fact is there are no miracles that happen unless someone takes the first step to eliminate the problem. We all suffer at times, and some of us more than others. It depends on the amount you owe, but for most of us getting out of debt is possible.

Let's consider Bankruptcy Chapter 7. Chapter 7 Bankruptcy allows families and individuals to erase many of the debts owed to consumers. Chapter 7 Bankruptcy will often erase medical bills, home mortgage, car payments, and credit card bills. The disadvantage with Chapter 7 Bankruptcy is that you will have to give up some of your assets in most instances. Once you fill out the appropriate papers you will then go into an 'automatic stay' which stops all your creditors from contacting you. This means that the creditors cannot garnish money from your checks each month to apply toward the bills you owe.

It also means that the creditors can not deduct money from your checking, savings, money market accounts and so on. You are also protected temporarily since the consumers are not allowed to discontinue your electric or gas. The advantage of Chapter 7 Bankruptcy is that you have a degree of control over all assets and income that are available once the bankruptcy is in motion. There are debts that cannot be wiped out by filing Chapter 7 Bankruptcy.

Those debts include child support payments, college tuition loans, criminal fines and costs, or other similar bills. The problem with filing bankruptcy is that new laws are coming that will make it more difficult for debtors to file. The new laws in motion are nearly prohibiting debtors




from finding a solution. Another form of bankruptcy that is available is the Chapter 13 Bankruptcy. Chapter 13 Bankruptcy means that the debtor keeps their assets while making lower monthly installments on their belongings. This is a good solution for building credit.

If you missed car or home payments it is a solution to help you repair your credit. The downside with Chapter 13 is that if you miss payments the courts has the right to change your plans. If the courts see that the delay is only temporarily they may issue you a 'grace period' until you get back on track, otherwise you might get a 'hardship discharge,' which means that your debts are dismissed. The best solution then is finding a solution for the problem that won't lead you into the courtrooms.

This is only a headache since you will have to make court meetings, be in someone else's control, and so on. The first step to repairing your credit and building to a better future is put some taps on your spending habits. Setting up a budget plan is a great start to credit repair without hitting the courts. Before long the law is going to make it virtually impossible for anyone to go to bankruptcy court, so it is time to get started now. If you are not good at budgeting, there are Nonprofit Organizations that will help you set up a budget plan for little or no cost.

Remember you are not alone, and there are people out there willing to help you get back on your feet. If you don't want to bother someone else with a budget plan you could also purchase software programs that offer the tools for budgeting. Quicken and many other software programs have excellent spreadsheet programs, analyzing tools, and so on to get you on the road to budgeting your money in order to repair your credit.

Information is this email is for information purposes only. Always contact your lawyer if you need legal advice.



About the author:

Tony Robinson is a business owner with vast experience in all facets of Credit and Credit Repair - for further tips and techniques visit http://www.officialdebtfree.com