What does Bankruptcy mean?

February 25th, 2007Bankruptcy, Uncategorized No Comments

What does bankruptcy mean?State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.The five most well known types of bankruptcy are:State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.The five most well known types of bankruptcy are:Chapter 7: Also known as liquidation, allows individuals or businesses to give up nonexempt assets and walk away from most debts. (find out more click here)State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.The five most well known types of bankruptcy are:Chapter 7: Also known as liquidation, allows individuals or businesses to give up nonexempt assets and walk away from most debts. ()Chapter 9: This section allows municipalities to reorganize debt.State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.The five most well known types of bankruptcy are:Chapter 7: Also known as liquidation, allows individuals or businesses to give up nonexempt assets and walk away from most debts. ()Chapter 9: This section allows municipalities to reorganize debt.Chapter 11: For individuals and, more commonly, businesses to reorganize debt. Similar to Chapter 13, in that it allows the filer to draft a plan to repay some debt while retaining assets. Chapter 11 has no debt limits, but is much more complicated, and therefore expensive, making it financially feasible mainly for businesses and very wealthy individuals.State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.The five most well known types of bankruptcy are:Chapter 7: Also known as liquidation, allows individuals or businesses to give up nonexempt assets and walk away from most debts. ()Chapter 9: This section allows municipalities to reorganize debt.Chapter 11: For individuals and, more commonly, businesses to reorganize debt. Similar to Chapter 13, in that it allows the filer to draft a plan to repay some debt while retaining assets. Chapter 11 has no debt limits, but is much more complicated, and therefore expensive, making it financially feasible mainly for businesses and very wealthy individuals.Chapter 12: Allows family farmers to reorganize debt. It works very much like Chapter 13, but with higher debt limits.State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.The five most well known types of bankruptcy are:Chapter 7: Also known as liquidation, allows individuals or businesses to give up nonexempt assets and walk away from most debts. ()Chapter 9: This section allows municipalities to reorganize debt.Chapter 11: For individuals and, more commonly, businesses to reorganize debt. Similar to Chapter 13, in that it allows the filer to draft a plan to repay some debt while retaining assets. Chapter 11 has no debt limits, but is much more complicated, and therefore expensive, making it financially feasible mainly for businesses and very wealthy individuals.Chapter 12: Allows family farmers to reorganize debt. It works very much like Chapter 13, but with higher debt limits.Chapter 13: For individuals who need to restructure their debt load. Some creditors will be paid back in full with interest, others in full and the remainder will be repaid a percentage of the debt.

State of insolvency or consolidation –meaning, you can not pay your debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors request to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the goal is a complete and equitable settlement of debts.The five most well known types of bankruptcy are:Chapter 7: Also known as liquidation, allows individuals or businesses to give up nonexempt assets and walk away from most debts. ()Chapter 9: This section allows municipalities to reorganize debt.Chapter 11: For individuals and, more commonly, businesses to reorganize debt. Similar to Chapter 13, in that it allows the filer to draft a plan to repay some debt while retaining assets. Chapter 11 has no debt limits, but is much more complicated, and therefore expensive, making it financially feasible mainly for businesses and very wealthy individuals.Chapter 12: Allows family farmers to reorganize debt. It works very much like Chapter 13, but with higher debt limits.Chapter 13: For individuals who need to restructure their debt load. Some creditors will be paid back in full with interest, others in full and the remainder will be repaid a percentage of the debt.Auto loans for Bankruptcy

Keeping your credit rating good and protecting your credit file

February 25th, 2007, , Uncategorized No Comments


  • Shop for the most competitive rates and annual fees.
  • Check your monthly statement for any inaccurate information.
  • Set aside some money for emergencies every paycheck.
  • Plan ahead and be conservative. Know what your monthly budget is and stick to it.
  • Pay your entire bill every month or more than the minimum monthly amount.
  • Pay bills 8 to 12 days before the due date to guarantee prompt payment.
  • Secure your records, personal information and credit cards in a safe place. Protect this information from being lost or stolen.
  • Plan your monthly budget or limit and evaluate often.
  • Beware what you are signing when you apply or open a new credit card or loan.
  • Pay at least the minimum payment on time, preferably ahead of time.
  • Avoid balance transfers unless you receive a competitive interest rate for life. You are only prolonging the inevitable.
  • Check your credit standing at least once a year. Double check the accounts you have are in fact those accounts that you have authorized.

Rebuild your credit

Common Mistakes On Your Credit

February 25th, 2007, Uncategorized No Comments

 Some common credit mistakes 

Increasing credit card limits. Beware! Credit card companies say they are rewarding your credit history by increasing your credit limit. This leaves you exposed to use your credit more and increase you debt. To refuse this increase of line of credit simply write or call the credit card company and refuse the increase.

Not knowing your interest rates and fees. Be sure you take the time to find out your interest rates and annual fees. (Fact, did you know that about 85% of you minimum monthly payment is interest). If you have high interest rates call the credit institution to see if you qualify for a lower interest rate promotion. If not shop around for a lower rate. You would not want to buy a $300 pair of shoes if you can shop around for the same jeans at another store for $100.

Not taking pride in your credit. Good credit is a valuable negotiation tool when you make large purchases such as a home, car, or home furniture. Challenged credit may slow down or stop you from buying such necessities. Try to budget you short and long term debt so you may increase your Credit scores.

Lengthening installment loans to get lower payments. This payment schedule lowers your installment payments but increases the amount of interest you pay over time. Thus, increasing the amount of overall payments over longer period of time. Try to pay installment loans in as short period of time and pay less interest. Be sure to budget your self accordingly.

Changing your credit card to Gold or Platinum. Most companies charge an annual fee for these higher status cards. Typically, $50 – $100 per year. Try turning these cards down and keep the use of you credit card for basic needs.

Never co-sign. When you co-sign you are not only responsible for your self, you are responsible for the other person you co-signed for. It also increase your income debt ratio which may count against you if you apply for a car or home loan.

Contact your lending institutions if you change your address and/or status. When you get married or divorced make sure you change your legal status. If you move update you information with the creditors and the major credit bureaus.

Minimum Purchase Rule. A lot of stores require a minimum purchase per transaction. This leaves the temptation to spend more money when you do not have to. Avoid putting yourself in this situation and avoid the credit card companies that also enforce these rules.

How Mistakes Are Made

When a credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens because

  • The person applied for credit under different names (Robert Smith, Bob Smith, etc.).
  • Someone made a clerical error in reading or entering name or address information from a hand-written application.
  • The person gave an inaccurate Social Security number, or the lender misread it.
  • Loan or credit card payments were inadvertently applied to the wrong account or the wrong person.
  • Http://WWW.PierreMoneyMart.com

Credit Help to Improve Your Score

February 25th, 2007, Uncategorized No Comments

Improving Your Score 

It’s important to note that raising your score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time.

Payment History Tips

  • Pay your bills on time. Delinquent payments and collections can have a major negative impact on your score.
  • If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score.
  • Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.
  • If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This won’t improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.

Amounts Owed Tips

  • Keep balances low on credit cards and other “revolving credit”. High outstanding debt can affect a score.
  • Pay off debt rather than moving it around. The most effective way to improve your score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
  • Don’t close unused credit cards as a short-term strategy to raise your score.
  • Don’t open a number of new credit cards that you don’t need, just to increase your available credit. This approach could backfire and actually lower score.

Length of Credit History Tips

  • If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly. New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.

New Credit Tips

  • Do your rate shopping for a given loan within a focused period of time. Credit scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
  • Re-establish your credit history if you have had problems. Opening new accounts responsibly and paying them off on time will raise your score in the long term.
  • Note that it’s OK to request and check your own credit report. This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
    Types of Credit Use Tips 

    • Apply for and open new credit accounts only as needed. Don’t open accounts just to have a better credit mix – it probably won’t raise your score.
    • Have credit cards – but manage them responsibly. In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
    • Note that closing an account doesn’t make it go away. A closed account will still show up on your credit report, and may be considered by the score.
    • Auto loan

The Truth about Credit Scores

February 25th, 2007Credit Scores, Uncategorized No Comments

 

Though your credit plays a major role in nearly every major purchase you make, most people don’t think about their credit until they need it. And a recent report issued by Congress found most consumers know their credit reports and credit scores are important, but they know less about what factors can affect them. Following are some common credit myths and some facts to set the record straight. 

Credit Myth #1 : Checking your own credit can lower your credit score. This is probably one of the most common credit myths out there. When you or someone else accesses your credit file, it is referred to as an inquiry. Your own requests for your credit report, promotional inquiries by credit card companies, and “checkup” inquiries by your existing creditors do not affect your credit rating. An inquiry made by a lender in order to evaluate your loan or credit application may lower your credit rating, however.

Credit Myth #2: You have one credit score. This is another myth that can be confusing for consumers. There are many types of credit scores — including those developed by the each of the three major credit reporting companies. These scores can vary, because sometimes the information in your credit history varies from one company to another. So it is wise to check your scores first before applying for a loan. The FICO® credit score developed by Fair Isaac Corporation is the credit score used most by lenders. It is unique to each individual and takes into account such factors as the length of your credit history, your debt-to-credit ratio and payment history.

Credit Myth #3: The higher your salary, the higher your score. Not true. In fact, your income and net worth are not reported to any credit reporting company. Your score is based largely upon the amount of debt you have and your payment history. The more of your debt you pay off, the likelier it is that you’ll see a positive change in your score.

Credit Myth #4: Paying off debt will immediately increase your credit score. This is something many consumers have difficulty understanding. While paying down debt is likely to have a positive impact on your credit score, it won’t change your score overnight. Creditors report their customers’ payment information to credit reporting companies on a periodic basis, so it may take some time before payments you’ve made are reflected in your credit score.

Credit Myth #5: Credit card offers can hurt your score. While applying for or opening several credit cards in a short amount of time could have a negative impact on your credit score, the actual offers you receive in the mail have no effect on your score.

Refinance your Auto Loan for a Lower Interest Rate

February 1st, 2007, Auto Loan No Comments

There are many refinancing alternatives that become available when people refinance auto loan balances. With a refinance auto loan option, an individual must go through the normal application procedures to help determine the new interest rate figure that their automobile loan will be refinanced.

If the individual has an perfect credit history, the interest rate will be lower to refinance auto loan balances, than the interest rate that will be offered to an individual that has experienced a repossession, or has a history of continual late payments on their credit history file.

Another refinance auto loan option that can be selected during the application process is to refinance the automobile for a longer period of time. If the lender is willing to refinance auto loan balances for a longer period of time, the monthly automobile payment will be further reduced.

This is especially helpful for students that are on a limited budget while they are attending colleges and need to pay for tuition, books and other items that they may be needed during the course of their education.

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