Image via Wikipedia Use of debts to meet day to day family expenses is clear indication that something is fundamentally wrong in one's financial planning. This is what most personal financial experts opine. Your basic expenses should always be met out of your income. One must use monthly income or savings, which is merely stored income, to meet these expenses. To manage these expenses out of borrowed money is a clear indication that you are either not earning enough or spending far beyond what you can afford with your current income. This is often cited as the best way to judge … [Read more...]
Liquidation and the Bankruptcy Process
Image by Getty Images via @daylife We often hear the term “liquidation” in relation to a bankruptcy case. In general, terms liquidation is the selling of property with the proceeds going to pay off the debts of the bankruptcy. Liquidation is the main concept used in Chapter 13 and Chapter 7 bankruptcy cases. Chapter 7 bankruptcies are considered to be liquidation cases. Chapter 13 cases are considered “debt-adjustments” and the person filing must prove that creditors will receive just as much in payment as they would if assets were to be liquidated. If a business … [Read more...]
A Look at the Different Types of Bankruptcy
Image via Wikipedia Many of us keep hearing the word bankruptcy tossed about more and more these days. It may be confusing because we hear all sorts of stories, good and bad, about just what bankruptcy is and what it entails. Here are a few facts about just what it is. Bankruptcy is a way to help people who are heavily in debt. It releases the person from their debt — partially or completely — however it does remain on, and affects, a person’s credit for 10 years. There are four basic types: Chapter 12 and 13, Chapter 11 and Chapter 7. Chapter 7 This is the most … [Read more...]
Avoiding Debt from Credit Cards
The recession can put a lot of stress on you and your current financial situation. Many individuals have been hit hard by it, whether it is concerning loss of jobs, higher prices, and other factors. Avoiding debt may not be easy, but there are some steps that you can take to avoid debt – or at least further debt, at any rate. Credit cards are one of the most common problems when it comes to debt. Unless they are used in the right manner, they often serve as a fast-track road to debt. Consumers are given too much freedom and begin to pay high interest rates on their purchases and … [Read more...]