Filing For Bankruptcy By: John Rivers Bankruptcy should be seen as the last resort for people who have got themselves into too much debt. It may seem the answer to all your prayers but bankruptcy is only able to solve certain debt issues. Remember, if you have filed for bankruptcy you may find it difficult to obtain credit in the future unless your bankruptcy has been cleared, or discharged for a number of years. Bankruptcy is very good for wiping out credit card debt. Unless you have a special secured credit card, your credit card balance is an unsecured debt. That means that the credit card company has no hold on anything that belongs to you if you do not pay back your debt. This is specifically the kind of debt that bankruptcy is designed to remove. Apart from credit card debt, you may have other unsecured debts, and bankruptcy can eradicate these as well. However, bankruptcy will not discharge your obligations to some other kinds of debts, including child support, alimony, tax debts, student loans, and any secured debts. If you are reading this then the chances are that you are considering filing for bankruptcy. Your debts have got to the point where you cannot afford the monthly payments that your creditors are demanding. However, there are numerous bankruptcy alternatives. The most important thing is not to panic and to sit down and look at your financial situation. If you reach the stage where you are in so much debt that you are considering bankruptcy then there are a number of measures that you can take to avoid bankruptcy. Firstly, you should cut up all of your credit cards. This may seem drastic, but it is the only way to avoid bankruptcy by guaranteeing that you do not increase your level of debt by charging more onto your credit cards. All lenders would prefer to receive some money rather than none at all and when you file for bankruptcy a number of your creditors will receive little or none of the proceeds. This is especially the case with your unsecured loans, such as credit cards. You should contact all of the people that you owe money to and explain the situation. Most will work out a repayment schedule with you as a bankruptcy alternative, giving you longer to pay off what you owe and sometimes even freezing the interest. About the Author: John Rivers is owner of Financial Advisory Network. His website offers information on financial planning, estate planning, and investment management.

Inside Finance FICO-Information   The acronym FICO actually stands for Fair Isaac Company, which was the company that originally created a mathematical model for the credit reporting company Experian. FICO was designed as a tool that could be used by creditors to evaluate the potential risks involved in lending money to consumers. In reality, there are other similar models that have been developed by other credit bureaus, but all of their results are referred to by the industry as FICO scores. The Financial Debt Pit   The consumers in UK start clawing their way out of the financial debt pit. These levels of debt affect everyone in the country, and have become a way of life. The fact that 2005 saw nearly one in twenty consumers racking up £100+ in financial penalties and charges making up £553m of unnecessary financial wastage going to the lenders, means that there is some way still to go if UK consumers are to regain control of the spiraling debt crisis. Credit Counseling Agencies   Credit Counseling Agencies are been honest nowadays. The problem is that there are a lot of dishonest agencies out there that would rather line their pockets than actually help their customers. With that in mind, many states have now established strict guidelines regarding who may and who may not call themselves a credit counselor. The latest state to jump in is South Carolina, which has recently passed legislation aimed at the credit counseling industry that takes effect in December 2005. Instant Approval Credit Cards   Let's discuss about instant approval credit cards. Behind the scenes, instant approval credit cards use the speed of the Internet and the sophisticated communication networks created for the banking industry. When you submit your application, banks can now easily verify your identity and check with one or more of the three national credit bureaus – Experian, Equifax, and Trans Union – to ensure that your FICO score meets their application criteria. (Your FICO score is a mathematical calculation performed by each of the credit bureaus that rates your credit history on a scale of 0 to 800.). Fair Credit Report Act   To get the good reports for the credit we always give the preference to the fair credit report act. Under the terms of the Fair Credit Reporting Act (FCRA), you have every right to know exactly what credit reporting agencies are saying about you.