Getting IRS tax-debt Relief

The Internal Revenue Service (IRS) is the revenue service of the United States federal government. IRS tax reliefs can be of various forms. Each form comes with a variety of certain variables such as the debt amount, the financial position at the present and the fines as a result of the money borrowed. As a surplus, various IRS tax relief Programmes are also available for all different sorts of debts heedless of whether they are of property, employment or income or other business related liabilities. Some of them are explained below:

Compromise agreements negotiations are a way for reassessment. It can not only reduce the fines and extra payments based on your period during which you are indebted, but also can actually reduce the cost of the tax liability. Tax rebates are properly negotiated by tax specialists in certain special circumstances such as the person is unable to pay off the entire fees or the nature of the debtor seriously undermines the possibility of bending the policies in his/her case. As for he/she is produced in the court on functioning of tax litigation, he/she can file bankruptcy here too. As is the case with all administrative pronouncements, taxpayers sometimes litigate the validity of the pronouncements, and courts sometimes determine a particular rule to be invalid where the agency has exceeded its grant of authority.

Certain plans for payment can help the tax reprieve. Ideal for businessmen or individuals who have come across serious dues or other penalties due to silly mistakes, errors and miscalculations in their personal accountancy or bookkeeping. Personal loans can some to the savior but in this reprieve, you have to pay the required interest and enter into an installment agreement which will also be having some amount of interest and/or payment extensions. If the conditions are unnegotiable, then as decided by the IRS, these extensions may well be downplayed and short term attenuations in payment extensions or tax interests are possible.

Penalty reassessment is one measure by which your tax rebate can be performed. Many a times penalty reassessment may be subject to carelessness giving rise to computerized flaws and loopholes in calculations. Such mistakes can be pin-pointed or may be a waiver can produce substantial documentation and ask for waiving the penalty in case of unavoidable circumstances of extreme trauma or demise of someone close.

IRS tax relief companies are a great remedial option when they might provide with best reliefs in shortest time preventing your salary garnishment or tax liens or seizures.

Short-Term Borrowing: Pros, Cons and Why

Of course debt is to be minimized and avoided. We have all heard this time and time again. But not everyone’s life circumstances are perfect. What were once two-earner households are now one-income households. That will stretch a budget very thin very quickly. Throw in a healthcare problem, an expensive (and poorly-timed) car repair, on top of an underwater mortgage, and you will find that life can be quite imperfect, despite all your best efforts.

These are the grey areas, the shaded nuances of personal finance. You can be a frugal and restrained shopper. But while your weekly savings from coupon clipping might be $75 or $100, that $5000 deductible on your health insurance can wipe out a year’s worth of savings in one playground accident. So how do you manage? Particularly if you lack a rainy day fund or credit line with a credit card issuer?

Short-term loans are one option. Even if you have imperfect credit and no collateral to offer, you can get one in the form of a payday loan advance. These are designed to be small and paid back within 30 days or less (on your next payday). It’s emergency money for times that absolutely call for it, with three distinct benefits:

1. Psychologically easier – These loans do not ride on your back for months and years, as is usually the case with credit card debt. You know that it is a necessary financial tool, but that you will settle up the debt in just a few days or weeks.

2. Long-term financial damage is limited – The comfort is more than psychological. A short-term loan is far less expensive than one held for the long term. The cost of debt always rises with the longer that debt is held.

3. Reduces the negatives of missing due dates – Short-term borrowing is often done to make timely payments on key bills. If you make a required payment on certain debts, you avoid penalties, higher interest charges and poor credit reports.

For the busy working person, the other benefit is that with online technologies these are faxless payday loans. The time required to process an application is about five minutes and can be done any time, day or night, from one’s personal computer.

Can an Instant Bad Credit Loan be the Ideal Solution for Your Short Term Fiscal Need

Resolving a short term financial requirement is not as easy as it seems. It involves arranging funds for meeting up the essentials. However, if you have a bad credit record, you might confront with difficulties while making the arrangements from some external resources like financial institutions. At such an event, instant bad credit loan could be your solution.

Instant bad credit loans are easily available. Once you qualify after applying, the amount is deposited to your bank account. The lenders of instant loans do not seek a credit check or a collateral. This way you can withdraw the money with much ease and relieve your financial needs without affecting your credit history.

However, make sure that you shop around properly for the lenders who offer such kind of loans. Analyze the exact reason for which you require the loan. If you are seeking it for purchasing things like a car, you must establish a good credit record first. You can also look for these short term loans to finance your wedding, parties or even paying off your debts.


While you think of applying for an instant credit loan, few things should be kept in mind.

• In case you have changed your place or got separated from your spouse, the lenders might ask for more details than the usual.

• Taking professional help is advisable because this will provide you with the information of the best possible loans for you.

• Find out a loan with a lower interest rate. Remember that the rate of interest depends on the amount of loan you apply for.
  

• Assess properly whether you are able to pay off the loan amount without defaulting on it.

Although, it is possible to get an instant loan without a credit check, yet, it is significant to know that sometimes people need to qualify certain criteria to be eligible for availing the instant loan. For example , the borrower must have a savings or a checking account and a steady flow of income in order to qualify for an instant loan.

Helping Hand for Debt Stacked Disabled

Medicine: "Your money and your life!” Karl Kraus

Yes indeed, it’s your money and financial situations that determine your future. Therefore it is very important for people to manage their money wisely so that they do not fall into the debt trap. However, sometimes due to sloppy approaches with your money, you might fail to manage your cash and eventually meet with crisis which might lead to debt burdens. It must be noted that doing away with debts is a difficult task for average people, but it becomes immensely painstaking for a person if he is disabled. It can prove to be very difficult to pay down the debts. But there are laws to protect the interest of the disabled people when they try to pay their overwhelming debts and confront their creditors. They also bear the scope the receive grants and seek help of the debt settlement programs.

Protection of Law:

Defaulting on your credit card debts may compel your creditors to drag you to court. But the creditors have lesser ways to garnish the wages from a disabled person. They are restricted to fetch the debt amounts from deposits like Social Security, disability benefits and pensions. If you are a disabled and receive most of the income from these assistance, you can consistently receive it without being harassed by the creditors.

Grants from the Government:

Look into the available government grants for you. You can browse through the websites like FederalGrantsWire.com, ADA.gov, which will provide you with a list of grants that the government offers to the disabled people. Although there are factors that determine your eligibility for the grants, yet you are allowed to apply for multiple grants at the same time.

Settling Debts:

Although you may receive all your income from social benefits, yet you might be required to participate in a debt settlement program. In order to do so, the first step should be to stop paying your debts. This convinces the creditors that they might lose the owed amount and hence would negotiate the amount and the rate of interest and lower it to your terms. You can seek the help of a debt settlement company.

Therefore, if you are disabled and are indebted, then instead of worrying take prudent steps so that you can rid it effortlessly and quickly.

Debt Elimination Is Only Part Of The Debt Free Process

Congratulations are in order if you have embarked on a debt elimination program. Whether you have chosen debt settlement, debt consolidation or a pay down plan, its is an important first step towards being debt free. It is only the beginning and these debt elimination programs play an important role in allowing you to get a new start financially. They will either help you eliminate debt totally or bring down to a level were you can manage it and continue to pare it down until it is gone and your financially free of it chains and debt free.

Nonetheless, as important as the debt elimination program is, more is required. It will do you no good if you continue your old habits and start accumulating debt once again. The process of debt elimination is therefore not only involves getting out of debt but learning new financial skills that will help you be debt free for the rest of your life.

A little debt is not a totally bad and helps you maintain lines of credit and your credit score. However, most individuals that seek debt elimination programs did not just have a little debt. Sure, there are those circumstances were unforeseen circumstances such as a job loss or illness forced some into the debt difficulties. But the underlying debt problem existed regardless.

During and after the process of debt elimination is over its important to learn to manage our money and live within our means. A good habit to form is to prepare a monthly budget that includes all our income and expenses and both monitor its effectiveness and stick to it.

Our debt problems are learned behaviors that arose either from those near us or just society as whole. The good news is that any learned behavior can be modified and new one put in its place.

To many the harshness of the situation that they are going through as a result of their current debt difficulties will be enough to make them change their spindrift ways. Other will have to work a little harder to modify their credit card mentality, but hopefully the unpleasant order deal that they went or are going through will help them do so.

The first step is the most important and that is to make a commitment to being debt free and start a debt elimination program. Being a debt free is not an easy process sometimes, but the reward of financial freedom and peace of mind are well worth it.

Once again I congratulate you on your decision to be debt free. I’m confident you will succeed.

The pros and cons of debt consolidation

When you enroll online to obtain the relief services, the company may offer you a consolidation program. They may also pass on your information to a third party service provider if they are debt consolidation leads generation company.

Pros of debt consolidation

A consolidation program involves combining all your bill payments into one. It helps you pay all your creditors on time. It offers the following benefits:

• No collection calls: The debt consolidation company representative communicate with the creditors on your behalf and prevent you from getting repeated collection calls.

• A single lower monthly bill payment: The consolidation company representative negotiates with your creditors to lower the interest rate on your bills and also eliminate the late fees and over limit charges. You have to make only one monthly payment to the consolidation company. The company will disburse the payment on time to all your creditors.

• Improve your credit score: Late bill payments get listed as a negative item on your credit report and lower your credit score. As soon as you start paying your creditors on time with the help of the consolidation company, your credit score starts improving.

Cons of debt consolidation

It’s true that by consolidating your multiple bills you can become debt free faster, but if you do not choose the right consolidation company, you may also be scammed. You can be defrauded in the following ways:

• High upfront fees: The most common scam is to charge you high upfront fees. The companies may promise you to refund it later but only a few of them will keep their words.

• Do not pay all your creditors: Scammers may defraud you by not distributing the monthly payments on time among all your creditors.

When you opt for a program offered by a consolidation company, you must verify if it has proper accreditations and may also check its BBB ratings. If the company you have approached turns out to be a debt consolidation leads generation company and they refer you to a third party service provider, then also you must check the accreditations and company reliability.

Credit card debt – How will you get rid of them?

It is unlikely that any household in the country hasn’t gone through the grueling process of a credit card debt relief plan. While it may be grueling for some, it may be smooth sailing for others. It depends on how seriously you take your finances. Falling into debt is common and an individual inevitably falls into debt at some point of time or the other.

What are the credit card debt relief options?

Just as the number of debtors has escalated over the years, the number of debt solutions has risen too. But not all debtors can handle large upfront fees of the debt relief companies. The write-up highlights the different credit card debt relief options that are offered by for-profit as well as non-profit debt help firms and how they benefit you.

Credit card debt relief offered by for-profit firms

These are debt help companies that will help you to get rid of debts by negotiating with your creditors so that these programs–

• Keep you away from bankruptcy
• Evaluate your financial position and suggest appropriate ways to get out of debt
• Enable you to enjoy reduced rate of interest and lower monthly payments
• Keep track of your debt payments as many debt relief options give you a repayment plan according to which you are expected to pay your debts.
• Reduce the total amount of debt you owe.
• Help you to avoid collection calls from your creditors and collection agencies
• Keep you away from debt collectors who threaten to sue you
• Improve your credit score.

The for-profit credit card debt relief firms will charge fees for offering their services to you.

Credit card debt relief offered by non-profit firms

The non-profit firms will help you in a similar manner as the for-profit firms do and you will be able to enjoy all the benefits that have been mentioned above. The only difference is that these debt help companies take donations or charge lower fees as compared to the for-profit firms.

The debt relief programs offered by these companies include the following –

• Credit counseling
• Debt settlement or debt negotiation
• Debt management or DMP
• Debt consolidation

If you are reeling under a debt spell, don’t wait for debts to overpower you. Sign up for any one of the credit card debt relief options that will meet your financial requirement and will give you debt relief.

How important are collection agencies to the creditors?

Collection agencies are firms that operate in the debt collection industry to collect debts on behalf of creditors. These agencies are usually regulated or governed by Fair Debt Collection Practices Act, commonly referred to as FDCPA. There are many websites that offer a list of collection agencies for hire and you can find out the agencies that operate in your state. Collection agencies play an important role in debt collection. If a creditor has extended a loan to you and for some unknown reasons you fail to make payments to the creditors which make the amount you owe escalate, the creditor may do any one of the following –

The creditor may offer a flat fee to the collection agency to collect the debt on his behalf, give a certain percentage of what is collected as fee to the agency that is collecting the debt or sell the delinquent accounts to the collection agencies for few dollars.

How do collection agencies operate?

The collection agency may contact the debtor in any one of the following ways –

• By telephone
• By sending Demand letters
• Notifying the 3 credit reporting agencies Equifax, TransUnion and Experian
• Legal proceeding

The collection agency will send demand letters to the debtors. The ultimate letter is in form of a warning that may spur the debtor into action. The debtor is usually threatened that a failure to pay will compel collection agencies to report to the 3 credit bureaus

You will come across collection agencies that contact debtors over phone. By doing so, a lot of unpleasantness can be avoided and this also helps collection agencies to maintain a healthy relation with the debtors.

The last resort is a legal proceeding or litigation.

Are all collection agencies reliable?

All collection agencies are not reliable. There are many agencies that violate the FDCPA that need to be followed by a debt collector. Although from a list of collection agencies, you will not be able to identify a collection agency that may take you for a ride, you can go through reviews and rip off reports of many collection agencies for hire. So, if you find that a collection agency is violating the rules, you can report the same to the Attorney general of the state in which you are residing or lodge a complaint with the FTC or Federal Trade Commission.

What we understand by Business Debt Refinancing?

Business debt refinancing is conversion of existing debt into a new debt with lower interest rates. This is basically for business owners and this program is offer by various lenders to cover existing debts and start with a new with different terms and conditions.

It can convert short term loan into long terms, which helps a business to maintain their cash and to increase capital. Also a business owner can make a good reputation, by paying off their creditors, which help in future in getting further financial help.

Unfortunately, there is some eligibility for getting business debt refinancing. All business is not eligible for this program. A business should have good debt history and trustworthy record in term of finance. Lenders will check your financial history and records before refinancing, as it’s a bit risky to covers all debt and refinance.

Before going ahead for business debt refinancing plan, it’s important to check few thing. Compare the interest rates and also the terms with different lenders and go only for which is suitable for you. All the refinancing agreements should be read carefully. Also check if the interest rates are flat throughout the period or get increased in between at anytime. Calculation should be done beforehand, for all the other fees like service fees, debt reduction fees, and listing fees.

How to Remove Collections From Your Credit Report

Among the things that hurt your credit score, debt collection accounts are among the worst. A debt collection is a serious delinquency and indicates you have failed to make a payment on one of your accounts.

Debt collections wind up on your credit report after you haven’t paid a bill for at least six months. The creditor or lender sends your account to a third-party debt collector to try to get you to pay the account. As part of the collection process, the debt collector lists the account on your credit report where it will remain for seven years, unless you do something to have it removed. attractivecredit.com can help with your credit reports. See what they have done by watching this video:

Disputing Debt Collections

One of the easiest ways to have collections from your credit report is to dispute it with the credit bureau listing the account. If the debt collector doesn’t verify that the debt is yours, then the account will be removed from your credit report. To dispute a debt collection, you should send a written request to the credit bureau stating the reason the account should be removed.

You might also dispute a collection account if it’s past the credit reporting time limit. Debt collections can only be listed on your credit report for seven years. Most accounts fall off your credit report automatically, but this doesn’t happen to all of them. If an old collection account is still on your credit report, you can dispute it.

Often debt collectors pass accounts on to other collection agencies. Unfortunately, when this happens, collection accounts can appear on your credit report multiple times. Dispute multiple listings of a collection account with the credit bureaus.

Paying to Have Collections Deleted

You can also make a negotiation with the debt collector to have the account removed from your credit report. Through a process known as “pay for delete” you may be able to convince the debt collector to remove the debt collection from your credit report in exchange for payment.

Debt Management Services

It's quite a tough job to find a right debt management company that suits your needs. There are many debt management companies, can be found on net. Before going ahead for this service, check the terms and condition of the company and be sure that you are comfortable with that.

What you understand by Debt Management

Debt management service acts as a bridge between you and your creditors. They obtain a consolidated payment of your various debts from you and pay your creditors on your behalf. They get a certain percentage of your monthly payment from your creditors, as a commission.

Debt management service is not suitable for everyone who is in debt. It's generally help with unsecured debts, like credit cards. For those who have secured debt, as car loan or personal loan, will not get more benefit from debt management.

How to choose a best Debt Management Service provider.

It is very important to search for a service provider as per your needs, before you sign up for debt management. First step is to think what type of help you want. It differs in case of student, businessman or an individual. Whatever, the situation of your debt may be, there are lots of companies to help you out.

For students, government provides consolidation loan with lower monthly payment. For businessman also there are many companies that help you to protect your assets and reduce you monthly payments. And there are hundreds of companies for individual to help with their debt. All you need to do is, decide what kind of help you want and then search for a debt management company that offers the services that you need.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Among the various reasons to avoid bankruptcy, one of the most important reason that has come up recently is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The law introduced some new changes in the way a consumer filled bankruptcy. The laws imposed few additional requirements on bankruptcy filings that made it more difficult and costly for consumers to file. The glance of the BAPCPA Act 2005 is summarized below:

• After coming up of the BAPCPA Act a debtor need to go through a means test before filling a Chapter 7 Bankruptcy (the bankruptcy which discharges the debts in full). The means test ensures that a consumer is not abusing the bankruptcy privilege and he is really not in a position to repay his debts.

• Anyone fails in the means test means that he - is able to repay the debts - and must file Chapter 13 bankruptcy, the bankruptcy in which debts are repaid over a 5 year period.

• A debtor filling a bankruptcy must go through a consumer credit counseling at least six months before filing, from an approved credit counseling agency.

The survey revealed that bankruptcy filings had been dropped significantly after the introduction of the BAPCPA. The statistics shows that total bankruptcy filings in 2006 were 617,660 which was a 70% drop from 2005 total filings - 2,078,415. This is just because of the strict requirements for chapter 7 filling that led to the increased percentage in filling of chapter 13 bankruptcies filling. The chapter 13 filling had showed an increase of 40% while it had declined considerably in case of chapter 7 filling.

When A Loan Modification Should Be Used Rather Than Debt Settlement or Debt Consolidation

A loan modification, debt settlement, and debt consolidation all accomplish the exact same thing. Each of these options can help to lower your monthly expenses. But a loan modification and debt settlement can actually eliminate a portion of your monthly debt, where debt consolidation will not. Debt consolidation will also require a min. credit score to qualify, where the other two options do not (in general)

Here is a brief overview of these three options:

Loan Modification

A loan mod is when the terms of a mortgage are changed to make it more affordable for someone who has experienced a hardship. In most cases, you will need to be behind on your payments and will need to prove your hardship to qualify.

There are three areas of a loan that are changed when a modification is approved. In some cases only one of the loan circumstances are changed, while in others, all three are changed.

1. The term of the loan
2. The interest rate of the loan
3. The payoff amount of the loan

By changing any of these three items (or all three if you are a good negotiator), the monthly mortgage payment will be drastically reduced.

Debt Settlement

This option is similar to a mortgage modification, because the term, rate, and balance are generally reduced for unsecured debt. Debt Settlement is not intended for mortgages, but can be used along with a loan modification. Debt settlement generally refers to reducing the balance or interest rate of unsecured debt (credit cards, mainly). In most cases, it's possible to take credit card debt that may have never been paid off otherwise, and reduce the balance and establish a fixed repayment plan. This allows the debtor to pay the debt of in just a few years, opposed to the rest of their life.

Debt Consolidation

Debt consolidation is the process of getting a larger loan and paying off a bunch of smaller loan. Generally this is done to get a lower percentage rate. Good credit is required, or enough collateral to secure the loan. Most debt consolidation loans are secured with real estate. A second mortgage or home equity line is common examples of a debt consolidation loan.

Each of these options can have a negative impact on your credit, however, they should all be a better option than bankruptcy (for your credit). If you have having financial troubles, or if you have to pick and choose which bills are paid each month, then it's time to start looking for relief. There is no reason to struggle each month because you are ashamed to ask for help.

Your Mortgage Company and/or credit card companies have put you (and most of America) in this position and it's time to take back control! Get your life back on track today by considering one of the options above.

Consolidation Basics

Many people are in the grey area about using debt consolidation services and the reason behind that is people worry in regards to whether or not their current credit rating will stay in tact or not, the truth behind this is as follows, if you have a good credit rating it will remain the same, if your credit rating isn't so good then by consolidating your debts this is effectively increase your credit rating and will not damage it whatsoever.

The basics behind consolidation is that you are rolling all your debts into the one account which will reduce the amount of creditors that you owe money too, debt consolidation is a way of sorting out ones financial situation and will see to it that your back on the right path to the financial freedom. Debt consolidation is not just another loan, a debt is consolidation is joining all of your debts into one low monthly repayment rather than having to pay 4 or 5 different sets of interest rates.

Debt consolidation is a win-win situation for both your client (You) and for the creditor, as the creditor gains extra business and you receive a much easier to manage interest rate that is consolidated into the one repayment.

To learn more about Debt Consolidation please check out this excellent debt consolidation resource website Consolidationblog.net

Five most common Bankruptcy questions

Can my creditors harass me after filing bankruptcy?

No, they will not! As per the law, once the bankruptcy documents are files, creditors must cease all the actions against debtors. Creditors cannot continue any lawsuits or call for payments.

Do spouse get affected?

If you spouse is not responsible that is didn't sign a contract or agreement, then they won't be affected. There are few cases where it is must for both husband and wife to sign the contract, such as purchasing or selling of a property. But other debt, such as credit cards, doesn’t require both to sign.

Consult your lawyer for more information on this.

Who can know?

Though Chapter 7 filings are public records, no one will know about that. There will be a record of your filing with the Credit Bureaus and for next 10 years it will remain on your credit record.

Will I ever get my credit again?

Yes! Many banks offer "secured credit cards where debtors need to put up a certain amount of money in account as security and guarantee payment. Initially the credit limit will be equal to the amount deposited and then it increases as per your payment record.

After two year of discharge, debtors can also avail mortgage loans on normal terms and conditions. Filing bankruptcy record stays for 10 yrs on your credit report. After that it becomes less significant.

How much it cost?

Filing chapter 7 bankruptcy will cost you $300 plus the lawyer's fees. Bankruptcy lawyer's fee varies, but should not be more that $2,000.

Unemployment rate worried traders

As per ADP National Employment report, employment fell by 298000 in August following a loss of 360000 in July. It is much less than the number of losses in since last September 2008, but more than expected by the analysts.

This report on unemployment gave investors another reason to worry about what is widely seen as the biggest problem facing the current economy. Unemployment mostly hit consumer market. People are restricted themselves for consumer spending, which accounts for about 70% of U.S economic activity. It will be a real trouble in pulling the economy out of the longest recession after World War II, without getting much help from consumers.

"Until Friday's data comes, no one is really making any big bets," said Neil Massa, senior trader at MFC Global Investment Management. "A little profit-taking looks healthy at this point."getting much help from consumers.

Investors fear to take risk for the reason that a weak job market can effect in pulling up the economy and hit the stock market. For every two stocks, three fell.

The Dow fell 29.93, S&P index fell 3.29, while the Nasdaq fell 1.82. Bond price get a rise. Other smaller companies fell 2.23.

Bill consolidation: Pay off your debts faster

Bill consolidation is an arrangement to consolidate all your loans and debts into one bill consolidation loan. Instead of paying for each loan and debt separately, you only need to make one easy to manage payment for all. Bill consolidation loan also lowers the interest rate and help you to pay off your debts faster.

There are many bill consolidation companies who can advice you for the best offer for your situation. They should be able provide you with the best offer and lower interest rates. So before you make a decision of getting a bill consolidation loan, don't forget to compare the interest rates and other terms and agreement with other bill consolidation companies.

Bill consolidation companies have skill to negotiate with your creditors and make a settlement. Sometimes the creditors may waive any late fees for other charges. They also try to lower the interest rates with your creditors. You need to make one monthly payment with the bill consolidation company, which they use to create a consolidation account and make payments. It also includes their fees. There are some interest rates like student loans and mortgage payments that cannot be consolidated.

Monthly fees are the better option to pay bill consolidation companies, as many clients drop out before in between. Although many companies charge an upfront fees which can be a large amount.

While searching for a bill consolidation company, try to look for those who only deal with bill consolidation. Companies who provide various services usually don't have a good record. Once you choose a company, remember to ask when your accounts will be fully paid. Also check your statements regularly.

Confused which bankruptcy to file? Check common types of bankruptcy

Chapter 7: It's also known as liquidation bankruptcy, which means your liquid assets are used to repay creditors. Liquid assets are those assets that can be converted into cash quickly, e.g. saving and checking accounts. Some of your liquid assets are distributed to the creditors by courts. Any remaining debt after distribution of liquid assets to your creditors is discharged. After this you are not liable to repay any debt and no creditors or third party collection agencies can claim any debt from you.

To qualify for chapter 7 bankruptcy, you need to show as per your family size your income is less than the median in your state.

Chapter 11: Also known as reorganization and commonly used by the owner of a business or corporation. In chapter 11 bankruptcy, you can continue your business and maintain ownership of all your assets and to pay off your creditors, work out a reorganization plan.

Chapter 12: Especially for family farmers and fishermen. In chapter 12 bankruptcy, debtors can control their assets by full ownership and work out a reorganization plan to pay off the creditors. It’s like chapter 13 bankruptcy but stretches over three year.

Chapter 13: Filing chapter 13 bankruptcy is adjusting your debt with regular income and reconstructing your repayment plan. You can repay some creditors in full with interest, others a part of your debt in a time period of three to five year with a repayment plan.

Credit card debt: Most American's are suffering from.

Do we use credit card positively? We our self know the answer better. There is no responsible use of credit card. Our expenses get increased with the credit card.

Credit card is a great help if we use it in a better and positive way. It's use should be for emergency purpose when you don't have cash. But now days we don't carry cash, because we have credit card. It's seen that half of our monthly income goes for credit card bill and that's not enough to stop the growing debt as every month we manage to pay the minimum payment and the bill amount remains closer to original amount. We pay interest more than that of original amount we spend, but we hardy think on that.

We don't get enough to pay the bill in full and keep paying the minimum amount and thus the credit card debt keep growing. It's same as gaining weight. You can gain it easily, but hard to lose. Then you work hard to lose your weight and in the same way you work hard to get out of credit card debt

Global job crisis.

Union activists protest against rising unemployment in Sao Jose dos Campos

We all know about the present situation of global economy and job crisis all over the world. Let’s check the job crisis percentage of major countries. After 1930 Depression, United States is facing the worst economic crisis. Here are few facts:

• In 2008 2.6 million U.S. jobs were lost.

• Since 1980, only 5 percent wages have increased, whereas 70 percent productivity has grown up.
  

• Each worker is working extra hours or second job to maintain the financial condition. Also each family is sending more members to work.
  

• In the last week that ended on March 7, record says initial jobless applications increased by 9,000 to 654,000.
  

Now let’s check what's going on in UK. It's noted that for each vacancy advertised in UK, there are 10 job seekers. In another area of south-east, for each job 60 workers are available. This week number on unemployment expected to go beyond 2 million. In central London, there are 4,275 vacancies against almost 71,000 unemployed. The most unemployed workers are in Isle of Wight. There are almost 3,152 people going after 52 advertisements.





Job loss at Cadbury UK







Let's check Canada's report. Canada lost more than expected or can say worse than expected 83,000 jobs in February. The jobless rate is almost 2 percent high than were it was in last year. Its now stands at 7.7 percent. In last four months, there are 295,000 jobs shed by economy. Prime Minister Stephen Harper expects the number of unemployment to rise further.