Under the Bankruptcy Code of the United States, there are two main ways in which one can file for personal bankruptcy, viz. Chapter 7 and Chapter 13 bankruptcy. Let us have a detailed look at and compare both these types and their advantages. CHAPTER 7 - Discharge Unsecured Debts VS CHAPTER 13 - Interest-Free Repayment Plan 1) Commonly Used . . . > Chapter 7 is used commonly when . . . You own very few items except for basic necessities such as clothing and furniture. It is also used when you have very less to no money left after you pay the basic expenses every month, or you can not even meet basic expenses. > Chapter 13 is commonly used when . . . Your equity in a property, such as a home, for instance, is significant and you wish to retain it. You have difficulty in keeping with [...]

A metaphor I’ve heard of several times when I’ve written about the subject of debt reduction is the comparison of being in debt to slavery. In a sense, I can see where they are coming from, but all in all, I can't see why some people take this comparison to extremes. I even stumbled upon this book once entitled ' Debt is Slavery'. I didn't know how to react to it, but I do remember wondering if it was an incorrect metaphor or just me. I’m sure it's available on Amazon or something right about now. It does have its similarities though, I must agree. Being in slavery means not being able to enjoy the fruits of your labor. And unless you embark upon debt reduction, debt entails almost exactly the same thing. I remember back when I was neck deep in debt. Numbers consumed every minute of my [...]

If you have too many debts to pay off and you want to get rid of them as soon as possible, take out debt consolidation loans. Banks may help you consolidate your debts into one loan. With the help of a consolidation loan all your multiple debts are consolidated into one. Thus, debt consolidation loans also assist you to manage your multiple debts in a systematic way. There are various benefits that you will get if you consolidate all your debts with a consolidation loan. This article provides you with information about the benefits you may receive when you take out a debt consolidation loan. Benefits of debt consolidation loans Here are some of the benefits you may receive by taking out a debt consolidation loan to consolidate all your debts. One monthly payment The most essential benefit [...]

In a real sense, the American government has pursued a policy of debt monetization ever since it began efforts of quantitative easing earlier last year. The Federal Reserve was buying up government debt with cash that had freshly rolled off the printing presses, but the U.S. is loath to dub its efforts as debt monetization. Luckily for it, even as a second round of quantitative easing looms large (and it is very likely to happen), the U.S. has not been dubbed as attempting to pursue a policy of debt monetization. That's because if their efforts were labeled as debt monetization, there would be no foreseeable manner in which anyone would accept the rock-bottom treasury yields on offer today. Conversely, the fed is labeling the U.S. as a safe haven for investments. One plausible explanation for [...]

Apart from constant stress, debt brings many other health problems in our lives. It’s not only financially, but also medically not advisable to accumulate debt. Here are few health problems that are associated with debt. Insomnia When you are buried under debt till nose, getting sleep at night will be a regular problem. You may get doze off after gulping down few sleeping pills. But don’t be surprised if you get up sooner than usual, and feel dizzy entire day. However, once you start repaying your debt, or build an emergency fund, you will start having healthy sleep at nights. Statistics: More than 40% Americans with debt have sleep issues. Headaches The only time I get headache is either when I give up caffeine, or am under debt. And this is the case with most Americans. More than 44% [...]

Why Is It So Easy To Get Into Debt? It is because debt is now a socially acceptable term. Getting a credit card is very convenient, and loans are available quickly. Besides, spending is fun, even if we don't earn enough to repay credit card loan. Most people don't like the idea of getting out of debt or taking the pains to reduce it. However, we have to eventually do it, when we are buried under debt till our nose, and every phone call we receive is from some or the other bank. However, times our tough, and it's becoming increasingly difficult to manage our expenses. Many of us don't even have jobs. If you are a bit concerned about your loan repayment, and credit score, here are few debt management tips that you would love. 1.    Write it Down until you don't have things in writing, the [...]

Officials from California Franchisee Tax Board recently revealed that Pamela Anderson, former Baywatch star, owes around $493,000 as tax debt. If you are astonished at the amount of debt she owes, you will be stupefied to learn that this is only a part of total debt she actually has to repay. Five US construction companies have recently filed lien against her as she owes a huge debt borrowed to make changes in her home. Biggest debt among the five is approximately $674,000. This money was used to purchase labor and materials to modify her existing house, construct huge swimming pool, and build expensive flooring for her guest rooms. Being unable to manage her debt, she has hired Robert T. Leonard, a tax attorney, to handle further proceedings, who refuses to reveal any information about her [...]

If you are overburdened with debt and searching for a way out, you can consider debt relief. Through debt Relief options you can reduce your debt burden and throw away your financial worries. There are mainly five types of debt Relief options that you can go for. Debt Relief Options : Debt Consolidation- A debt consolidation program can help you to avail lower interest rates on your existing loan. This way the amount of your monthly loan payments also fall. A debt consolidation company can also help you in eliminating the late fees charged to your debt account. If you have piled up credit card debt, then you should opt for Credit Card debt Consolidation program in order to get debt Relief. If you have defaulted in paying your utility bills and medical bills, then also you can go for Bill Consolidation. [...]

There are countless financial issues faced by college students, and I could talk about it all day. However, let’s keep it precise and discuss some of the most common debt-generating habits adopted by college students these days. Being trendy: No, I am not asking them to walk like a scrub in their colleges. However, they don’t realize how much they spend just to keep up with the trend. Quite similar to the trend, their money fades away, quicker than expected. Instead, they can focus on wearing and buying what’s convenient, rather than what’s in. Going out and eating out more than required: We all know college students consume alcohol when they say ‘going out’. It’s hardly a secret. Reducing the number of times they go out, however, can save them enough to meet next month’s [...]

We have read numerous articles like ‘5 tips to save money’, ‘10 steps to pay off your credit card debt’, ‘15 tips to recover from recession’, and blah, blah, blah. Okay, quite motivating and entertaining articles. In fact, many of us actually saved enormous funds with the help of these sermons. However, it’s not possible for every individual to save a fortune or even come out of debts. And if they attempt, the poor economic conditions, rising unemployment rate, and inflation would not let them succeed. With debt, comes the non-detachable disgrace and the coyness of seeking help. It’s obvious that people seek shelter under the only alternative visible to them. And that’s Bankruptcy. I know you endeavor filing bankruptcy because you did everything you could to get out of debts. [...]

You still remember how easy it was to acquire a student loan. Don’t you? It’s not at all astonishing to learn that you weren’t aware of what you were throwing yourself into. How old were you when your loan was disbursed to you? 18, 19, or 20? It’s obvious that you didn’t comprehend then, what it is like to be laden with debts. You were too careless along with those freaky words like structured loans, subsidized loans, federal loans, etc. I understand that this unawareness caused you to be a favorite prey of institutions granting student loans. However, you have spent many years with this lack of knowledge and it’s high time that you understand what the real consequences of not repaying the loan are. Didn’t you enjoy spending their money? You did, right? I hope not repaying this [...]

I’ve been one of the lucky few people of this planet to have managed to steer myself clear of the bad economic times without a dime of debt on my name. But I’m amazed to see my friends, mostly people with sound financial cushioning and stable careers succumbing to the pressures of the recession and now burdened with heavy debts. If you are one of them, here are some things that you should do, without fail, to relieve yourself of the crisis soon. Don’t Get Psyched First of all don’t be embarrassed because you are not alone. Professional debt collectors say that these days there are a large number of middle class and rich people under huge debt. They are first timers and don’t have adequate strategies to cope with the situation. Being first timers they are dismayed and are not focused [...]