what makes a person eligeable to file bankrupt?

Question

I have some serious financial problems,having to pay bills every month with my credit cards. I know that is not the thing to do. I need help badly,,

Answer 1

Take a look at the link I've provided below. It discusses the new bankruptcy rules, requirements, and other subjects. If, after reading it, you still think bankruptcy is the course for you, contact a bankruptcy attorney. He will review your situation and give his opinion if it's the correct option for you.

My opinion? If you were to put yourself on a very severe budget, and take all of your disposable income and apply it to your debts (while stop further credit spending)...can you get out of debt within 5 years? If not, I would file.

Sure, a bankruptcy will ruin your credit for several years. But so do the late payments, charge-offs, judgements and everything else that goes along with debts. But at least you won't have the creditors harrassing you, taking your property, foreclosing your home, and garnishing your wages to the point you can't live.

Answer 2

Avoid bankruptcy if you possibly can. Most people can!

You need to start something called a debt snowball. What you do is list all of your debts from smallest to largest. You pay the minimum on all of them and pay as much as you possibly can above minimum on the smallest. Once that one is paid off, you move that full payment to the next smallest debt and so on. Take a look at the following 7 baby steps for getting out of debt!

http://www.mdmproofing.com/iym/babysteps.shtml

Remember! Keep you and your family fed, clothed, and lights on first. Do not even think about paying Visa or MasterCard if you have not covered the basics.

Also, according to Dave Ramsey, it is a myth to think that "I'll just file bankruptcy and start over." From his experience with it, he says that "bankruptcy is a gut-wrenching, life-changing event that causes lifelong damage."
http://www.daveramsey.com/the_truth_about/bankruptcy_3018.html.cfm

Answer 3

definite you could deliver a lawsuit. If the agency does flow out of commercial you're able to have of venture to get well a judgement in case you win your lawusit. There are professionals who handle the determination of judgements. Your certainly status relies upon on the place you stack up interior the formal order of debtor precedence on your state. you're able to prefer to seek for suggestion from a criminal expert to make certain your particular possibility of restoration on your state, given the character of your grievance and assuming you be triumphant. finally, even with the undeniable fact that a protracted shot, the court docket will enable an regulate-ego attack against the agency. If this suceeds you could then benefit get admission to to the non-public supplies of the vendors of the agency. If that's a great agency, it somewhat is in all possibility no longer a threat. If that's a small deepest agency, extra beneficial possibility right here yet provided that the money you're claiming as damages are substatial. finally, a tort reason of action will assist you assemble means punitive damages as properly. no longer a criminal expert....advise you notice one and get a loose consultation.

Answer 4

You must file bankruptsy. It cost over $350. It will be almost impossible for you to get any credit for a min of 7 yrs. During that time the IRS can garnish your income...it is not pretty!

Answer 5

make an appointment with a bankruptcy lawyer. They will tell you if you should file bankruptcy or contact a consumer credit counseling service. They make deals with the companies you are in debt with to lower your monthly payments so you don't have to file bankruptcy.

Answer 6

There are some new rules as of last Oct 2005. So you need to speak with a BK attorney. Try to keep some of your accounts out of BK so that you can re-establish your credit pretty quickly.

Answer 7

I would recommend consulting a credit couselor first.

Answer 8

Based on your descriptions, it sounds like you're in a lot of trouble. However, bankruptcy isn't always the answer. If you're losing sleep and have lost your apetite over debt, take a breath and read what I have to say before you do anything!

HOW BILL COLLECTORS WORK
When you have bad debt that goes into collections (after being late/unpaid for 180 days), these debts are sold off to bill collectors (essentially, scum bags run by the mafia). The original bank or creditor is no longer collecting it. Instead, it gets auctioned off to scum bags who buy it for pennies on the dollar. What they do is they turn around and try to scam you for the full value of the original debt PLUS interest and penalties, which can almost double or triple the original balance.

DON'T NEGOTIATE WITH TERRORISTS OR SCUM BAGS
Whatever you do, don't negotiate with so called "non-profit" credit counseling agencies! They're in bed with debt collectors, and are run by scum bags and mafia! I'm not kidding. I'm dead serious. They're run by the same people as the debt collectors!!! And they charge ridiculous fees, a certain percentage of your balance. Non-profit my fat buttocks!

THE (EMPTY) IMPLICATION OF LAWSUITS
It's important to be aware that debt collectors often hire lawyers to write letters on their stationary to make debt collection notices sound more "official" and use the empty threat or implication of a lawsuit to scare you into paying them what I consider ridiculous financial rape. To understand better, read more below. Regardless, the law requires them to identify themselves as a "debt collector". So if you've received any letters from so-called lawyers, go back and re-read the letter and you'll see that somewhere in small print, it'll identify the letter as an attempt to collect debt! NO WORRIES! Treat these bastards as you would any other debt collector and ignore the legal stationary. In most cases, lawsuits are rare and never happen. The costs of litigation are too high to sue for every collection case.

It's funny, too. If you have one of these so-called letters from lawyers, notice that they don't explicitly say they're going to sue you. That's because by law, they can't say they're going to sue you unless they actually plan on following through! So, all in all, it's just a ruse to scare you.

So unless you've got lots of assets, don't worry! Sleep well, eat will, and live long and prosper!

TELL THE SCUM BAGS TO SUCK IT!
Send a cease-and-decist letter to the bill collectors, which basically tells them to shove it. This is mentioned in section 805c of the "THE FAIR DEBT COLLECTION PRACTICES ACT".

Here's an excerpt:


----------------- except from FDCACT Section 805c -----------------

"(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete upon receipt."

----------------- except from FDCACT Section 805c -----------------


By law, the debt collect must return the debt as unpaid/uncollected to the original bank/creditor and destroy your records, or they can take legal procedings against you. They are allowed to contact you in writing ONE LAST TIME to inform you of their actions (ie. if they are suing you, if they're returning the debt to the collector, if they're going to run off and cry to their mommy, etc.). Unless you've got valuable assets, the most they'll do is probably terminate the collection.

If you don't know how to write a cease-and-decist letter, there's plenty of websites that will provide templates for cease-and-decist letters.

NOTE: This does NOT apply to the original creditor, only debt collectors. Legally, you will still owe the original creditor!

REMOVING THE NEGATIVE ENTRIES
After a little over 1 month of sending the cease-and-decist letter, contact each credit bureau where you have these negative entries and request to have these debts verified/validated. The credit bureau will then contact the collector and the collector will be unable to locate your records (per having destroyed your records after the cease-and-decist letter). After 30 days, if the debt collector cannot prove you owe them this balance, the credit bureau will automatically remove that entry.

NOTE: Only negative entries added by debt collectors (who have returned your account to the original creditor) can be removed in this method. You will still owe the original creditor.

PAYING OFF THE ORIGINAL CREDITOR
Once the entry has been removed, contact the original bank/creditor IN WRITING and arrange to make FULL payments in return for a "paid as agreed" entry on your credit report, OR simply removing the account from your credit report altogether. Make sure you get this agreement from them in writing before sending even a dime to them!

THAT'S TOO MUCH WORK, I JUST WANT TO PAY IT OFF
If you don't want to deal with all the steps above, simply contact the creditor/collector IN WRITING and get them to agree to mark the entry as "paid as agreed" or remove the negative entry from your report in return for full or settled payment. Make sure you get this in writing!

CREDIT REPORTING AND THE 7 YEAR CLOCK
As for your credit, it takes 7 years from the date the account went into collections to fall off your credit report. Don't make any payments or disputes or requests to verify/validate a debt unless you intend to pay it off! You could easily screw yourself over!!! If you make a partial payment or unsuccessfully dispute or verify/validate a debt, it'll reset the 7 year clock.

7 YEAR CLOCK TIP
Always PAY OFF IN FULL any balances you wish to pay off! Otherwise, partial payments will simply propagate the bad credit and reset the 7 year clock. In other words, if it takes you to make minimum payments for the next 20 years to pay off a $5,000 loan, with each payment you make to a bad debt, the 7 year clock is reset and it will stay with you for another 7 years plus 180 days (180 days is usually how long it takes to go into collection). In other words, you'll be stuck with this negative credit entry for 27 years and 180 days!

I'M A LITTLE BASTARD AND REFUSE TO PAY
If you're a little bastard and simple don't want to pay, just wait until the statutes of limitation pass and then you're scott free and they can no longer collect a dime from you. Of course, there's your guilty conscience and the ghost of Christmas past that will haunt you for life!

Keep in mind that you can't escape the government or student loans! So make sure you pay up or arrange for payment plans if you owe the government or any student loans.

Also, if you choose to be a bastard and you own any valuable property or have any large amounts of cash stashed in a financial account (such as a house, an expensive car or boat, stock brokers, IRAs, savings, checkings, EXCEPT for 401k's and perhaps 403b's which are protected from creditors), there is a chance the creditor or debt collector could sue you. This really depends on the state where you opened the account.

For a list of statutes of limitation for debt, check out this website:

http://www.bankrate.com/brm/news/cc/20040116b2.asp

WHEN CREDITORS ATTACK (HARASSMENT)
As an additional tip, by law, debt collectors cannot threaten or harass you. This includes neighbors, friends, family, unwanted calls to your work place, and empty threats of lawsuits or arrests. If they threaten you with a lawsuit, they MUST follow through or else they've just violated your rights! If they do, they're violating your fair debt collection act rights and you can sue the MOFO's for violation of your rights! These are all highlighted under section 806 of the FDC Act.

To learn more about your rights under the "THE FAIR DEBT COLLECTION PRACTICES ACT", you can either read the FTC website below:

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

For a summary, visit this website:

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

Or check out the Wikipedia entry here:

http://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act

If a bastard debt collector is harassing you or violating any of your rights, file a complaint! Be sure to document every phone conversation, snail mail, or harassment you experience.

https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01

Here are my tips summarized:

*** Credit entries last 7 years (10 for bankruptcies).
*** Every state has its own statutes of limitation for debt that protect you from collection after so many years.
*** Don't negotiate with terrorists or scum bags (aka debt collectors or credit counseling agencies).
*** Send cease-and-decist letters to tell debt collectors to shove it!
*** Don't agree to anything unless it's in writing!
*** You have the money, therefore, YOU HAVE THE POWER! You are in control, so make sure creditors remove any negative entries on your credit file before sending them a single dime!
*** Don't pay any old debts unless you really intend to pay it off! Partial payments or debt validation/verification attempts will restart the 7 year clock, if not paid in full or completely removed from your file.
*** Don't let creditors harass you! Sue them for damages and violation of your rights. Put yourself in the driver seat and let you dictate the terms!
*** Keep written records of every transaction or discussion, and be sure to report any violations to the FTC.
*** You can't escape the government or student loans! So don't even try.

CAN ANYONE TESTIFY TO THIS?
In my own personal experience, I owed over $30k in debt that I couldn't pay off due to being laid off during the dot-com bust. The collectors want over $60k after penalties and interest. I laugh in their face. I haven't paid a dime and I sleep very well at night. I only have 2 more years to go before I have a perfectly clean credit, and 1 more year to go before I'm off scott free (I live in Oregon --- the statutes are 6 years). I guess I took the bastardly approach! But whatever. I don't see the difference between being a bastard and filing for bankruptcy; they're both bastardly!!! Just that a bankruptcy will screw you over longer (10 years instead of 7). Doesn't take a genius to figure out which option is easier.

If you didn't get my subtle hints, I'll spell it out for you. The FDC Act clearly protects you and provisions you with certain unalienable rights. Although I don't out right advocate NOT paying, I do want to highlight that for the average American, between filing bankruptcy and being a bastard, it's much easier and makes more sense to just not pay. In other words, if you're not rich and can't make a settlement to pay off the account, you're probably better off just letting the debt die on its own. Some states, like North Carolina or New Hampshire, have a 3 year statute limit for written contracts. This means after 3 years, you don't owe them a dime except per your conscience.

And as a testiment, even with my bad debt still shadowing my credit, I just bought a new car for 14.9% APR through CitiFinancial. Not bad at all! And for those of you new to auto loans, 14.9% is actually very good for having bad credit. The best thing about this is that an auto loan is one of the absolute best ways to build/rebuild your credit.

And if you're worried that bad credit will hurt your chances of getting a good job, let's put it this way --- I work at a major internet company (I can't say which, haha!). Suffice to say, it's a very big one --- in fact, the one with the biggest audience. Anyway, the background checks are notoriously hard to pass, but I passed with flying colors. My point is, bad credit alone will not doom you to low paying fast food jobs. Certain jobs, such as banking or billing jobs, do require optimum credit. However, for most other jobs, your consumer credit record has no bearing. Employers are more concerned about your employment, criminal, and public records. Coincidentally, all these are also available as part of your credit report. Go figure.