If you’re buying groceries with credit, you’re probably not in a good financial situation.  If you can’t afford the trip to the store without using your credit card, there’s probably too much of your income going towards credit payments.  Food should obviously be a high priority and if there’s not enough cash for a high priority then there’s a problem.

If you’re having trouble making basic household expenses then you probably have a larger money issue.  If the mortgage, rent, taxes, or utilities aren’t getting paid, then your housing may be too expensive, or you may have too much income going to other things. 

If you’re unable to make minimum payments on your credit cards you’re definitely overextended.  If credit card debt becomes large enough where minimum payments are unaffordable, you’re using too much credit.

If any of these problems sound familiar you may want to consider speaking to one of our counselors about your finances.  No matter how bad you think you’re financial situation is, it can always get better.

A Chapter 7 bankruptcy is an elimination of debt completely.  A Chapter 7 bankruptcy is typically discharged within 4-6 months after filing.  After the bankruptcy is discharged the debtor is allowed to keep all post-petition earnings.  An advantage to this type of bankruptcy is that the debtor can begin establishing credit sooner.  A drawback is that a Chapter 7 stays on a credit report for 10 years, whereas a Chapter 13 stays on a credit report for only 7 years.

A Chapter 13 bankruptcy involves a repayment plan for debts through the court.  The payment plan is often 3 or 5 years depending on the debtor’s income level.  Once the payment plan is completed the bankruptcy is discharged. 

There are many grounds to deny a discharge to a Chapter 7 petitioner.  The only grounds to deny a discharge for a Chapter 13 are nonperformance of the plan or not completing the required debtor education class.  Advantage CCS offers the debtor education class either online or in-person for only $25.  If you are considering filing bankruptcy we also offer the required pre-filing counseling either online, in-person, or by phone. 

If you are considering filing bankruptcy always seek legal advice to see if it will be your best option.

Advantage Credit Counseling Service now offers full online pre-filing bankruptcy counseling for only $30!  Go through our online module and receive your pre-filing certificate via email within one business day!  You can begin your online counseling session by clicking on the link below:

https://www.advantageuser.org/counseling/bankruptcy_begin.cfm

Bankruptcy can be a tough process.  Let us guide you through the process to make it as easy as possible.  If you have any questions or concerns, or would prefer a telephone or in person session, feel free to contact us at (888) 511-2227.

One ad I recently saw made bankruptcy sound like a walk in the park, like someone waves a magic wand and all of your troubles are over.

Bankruptcy is certainly not an easy option. It’s not the best option for everyone. (Remember that it will stay on your credit report for up to 10 years and make getting new credit very difficult.) However, there are some people who truly don’t have a better option. And, though it’s difficult, you can rebuild your credit over time.

The bankruptcy laws now require anyone considering filing for bankruptcy to attend what is called a “pre-filing bankruptcy counseling session.” This session is actually very beneficial. A certified counselor reviews your financial situation and gives you the information you need to decide if bankruptcy is really your best option. The counselor may be able to give you other options.

The important thing is to make sure to understand all of your options and not take any decision lightly. And please be very careful when working with any kind of a debt relief company. Make sure you work with a non-profit agency that is affiliated with the National Foundation for Credit Counseling and has a good record with the Better Business Bureau.

If you have found yourself in that situation, you may be wondering if you can claim bankruptcy.

There are a few things you should know if you are considering filing for bankruptcy.

First, the Bankruptcy Reform Act of 2005 has set forth some requirements for those who do file for bankruptcy.

One very important requirement is that you must complete a pre-filing credit counseling session before actually filing for bankruptcy. If you file without completing the mandatory counseling session, your case will be dismissed, and your attempt to file will still be noted on your credit report.

At Advantage, we recommend you contact your local Bar Association and hire an attorney if you are planning to file for bankruptcy. While you can file on your own, it’s a complicated process. But, understand that if you hire a lawyer, there will be attorney fees on top of the bankruptcy filing fees.

Individuals can file for Chapter 7 bankruptcy — which means most of your debts are erased — or you can file for Chapter 13 — which means your debts will be restructured and you’re given a payment plan. Only some filers will qualify for Chapter 7. It all depends on each individual’s financial situation.

After you file there is a legal process that will take place that involves a court appearance. An attorney can explain all of the details.

One other part of the process is to complete an education class within 45 days of your court appearance. Your bankruptcy will not be discharged until you complete the class and send a copy of your completion certificate to your attorney.

For more information, check out this Bankrate.com article, or to talk to a credit counselor about your financial situation and to see if you have other options besides bankruptcy, call Advantage CCS at (888) 511-2227 or visit our web page at www.advantageccs.org.