Benefits And Safeguards Provided By The Structured Settlement Protection Act

The Structured Settlement Protection Act states that certain transactions regarding the sale of a structured settlement need the approval of a judge in your state's court before they can be completed. It is also stipulated that the responsible insurance company making the payments need to be part of the process prior to the sale.

Prior to the inception of the protection act it was not necessary that insurance companies be informed of change of ownership of a structured settlement, and quite often did not know of the change until after the fact.

So, whether you are comfortable with the payment setup of your settlement or are considering selling your annuity, it would be in your best interests to learn more about the protection act.

Requirements of the Protection Act

The act now requires that any interested parties be notified of a sale or partial sale of a structured settlement twenty days prior to any court hearing seeking approval for any changes.

Prior review by a judge is required before any sale takes place. This is done to insure that the sale is in the best interest of the person or client receiving the annuity.

This requirement exists for the protection of the client. Before the implementation of the act there were companies that unscrupulously took advantage of many people who wanted to sell their settlements by offering paltry and unfair amounts to purchase their annuities and settlements.

Many clients, either because of the lure of a large lump sum of money or lack of knowledge on the subject, fell prey to these tactics.

Benefits and Safeguards of the Protection Act

The client selling the settlement must disclose the arrangements associated with the sale along with their personal financial affidavit describing their current financial status. This usually must be submitted three days prior to any finalization of the sale or contract signing.

It is now the responsibility of the buyer of the settlement or annuity to disclose all information relative to the purchase and sale of the annuity or settlement, not the insurance company, issuer or client.

A company that is proposing or trying to buy your settlement must also advise you to seek legal advice before proceeding with sale. This also must be given in writing, and must be done before any information can be presented in court,

Once all documents have been signed, the seller or client still has three days to change their mind about the decision to sell.

View the Original article

A Structured Settlement Is Beneficial To All

Prior to the advent of annuity settlements as a type of settlement payments, defendants were often actually burdened by the fact that they had to accept the lump sum amount of their compensation all at once. Even when the defendant is a large company, extracting large sums of money from their funds to satisfy the settlement was definitely not a favorable business practice. The same holds true for the plaintiff, who is suddenly burdened by having to come up with an effective and properly managed plan for their finances.

There are also many instances of a plaintiff or plaintiffs squandering their settlements. Spending sprees and poor judgment have caused many recipients of cash settlements to end up in poor financial situations. Hence, the structured settlement was a good option to overcome the drawbacks off a one-time cash payment.

The advantages associated with payments over time definitely outweigh the disadvantages, and it is very commonplace for many cases involving loss or injury to be resolved by the implementation of a structured settlement. In most cases, when the plaintiff does request a lump sum settlement, they are required to prove to the court that they have reasonable and important major expenses. The type of expense most often quoted are associated with career moves, high medical expenses and also costs of education for children.

These safeguards subsequently make a structured settlement beneficial to both parties, defendant and plaintiff. Of course, you may also opt to sell your structured settlement. You are entitled to, at any given time; sell the settlement to convert it into lump sum, but you might not be able to convert the lump sum into structured payments as easily.

As previously mentioned structured settlements are favorable to all parties involved in the dispute or case. The plaintiff will realize several distinct advantages with the acceptance of a structured settlement as opposed to a lump sum arrangement. As far as the defendant is concerned; it is always easier to pay compensation in regular installments than to be forced to pay all at once, especially if the amount is significantly large. The payment plan option also decreases the legal and administrative expenses that the defendant has to pay. This type of agreement is always more appealing to the court also because the time spent on a trial is minimized.

The bottom line is simple, compared to a one-time large cash payout; a structured settlement is a good user-friendly solution for everyone involved. That being said, there are still some situations where a lump sum payout is the better course of action.

View the Original article

Structured Settlements - Pros and Cons of Structured Settlement Over a Lump Sum

An initial response for most people who are faced with a large sum of money is to take the money and run. When finalizing details of a structured settlements agreement stemming from an injury sustained by someone's negligence, it would be in your best interest to stop running and consider your payout options.

One payout option is to receive the award amount in one lump sum and the other is in a form of a structured settlement in which you would receive scheduled payments in your lifetime. There are pros and cons with both options. By comparing both options, it can assist you in making the best decision that suits your personal needs.

Pros and Cons of a Structured Settlement

Pros - There are many advantages to selling, however, one would have to agree that security has to be one of the best aspects. Knowing that your payments would be received as scheduled brings a sense of peace and security. This is especially true, if you have been disabled as a result of your injury case.

Pro - Another benefit of choosing a structured settlement is that there is no tax charge at a state or federal level. There are no concerns about potential tax leaving you with more money for your investments.

Con - One of the negative aspects with a structured settlement is that with this type of agreement the only way to change your decision is to have a structured settlement company buy your payments. Many people stress with having to go through another process with their settlement. Plus it can come with a high price.

Pros and Cons of a Lump Sum Payment

Pro - Having a lump sum of money allows you to pay off acquired medical bills, attorney fees, and other expenses associated with being injured and possibly out of work.

Pro - Choosing a lump sum of payment will also provide you with a significant amount of money to put in investments. Making high yield investments that perform will is ideal for receiving a lump sum payment.

Con - The temptation of a lump sum of cash often falls into play for many people. The goal is to budget but a lot of people tend to overspend and prematurely run out of money.

It is your decision to balance out the pros and cons of both options. The key is to stop running and consider both options so that you can make the best decision for your future needs. The pro's and con's of selling structured settlements are as varied as the individual. When you're ready or needing to sell a structured settlement, like anything else you must consider the bad and the good.

View the Original article

Strength From Your Annuity After Death

Are you attempting to find some ? A loved one has died and left you an annuity. Death benefits can present you security and strength for you or your loved ones. Death benefits can be important if it they are offered as part of an annuity. Annuity death benefits vary with each different annuity type depending on which kind is purchased and the state you reside in.

Contemplation of life after retirement is one that should to be taken under consideration. Figuring out how valuable your annuities are beforehand could be critical.

Immediate annuities have an immediate payout. The death benefit allows the money still in an annuity to go to the beneficiary if the buyer passes in death before receiving the full contract value of the stated annuity. An example is if you bought an annuity with a contract value of $60,000, and used $20,000 in benefits before your death, then your beneficiary on your contract would receive the extra $40,000.

Deferred annuities are those in which the funds from the annuity create an interest return, but the buyer does not receive the payments immediately. They are often bought before the owner decides to retire so the funds have time to increase and earn a nice capital appreciation before regular payouts are received. You're doing the right thing now by performing research on annuities and how they could effect you or loved ones in the future.

Deferred annuity death benefits are generally equal to the money left in the contract plus the interest accumulated up until the owner's death. When people shop around for an annuity, they generally look for the basic segments, like payment structure and annuity type. After selecting an annuity, they can elect to purchase a rider option on the annuity.

Riders not only arrange for their costs in retirement, but also consent for a lump sum payment issued upon death to cover funeral and other expenses. This makes riders a huge advantage for annuity investors.

Riders will inform you in the risks you face. Risks such as ages lifestyle, health condition, and credit report are considered in determining the risk, along with the price of the annuity in order to make money.

If you are concerned about expenses and your family's security after your death, then the death benefit feature in your annuity is an option worth taking into account. By strengthening your security in your death benefits, you also bring strength to your loved ones.

View the Original article

Structured Settlements - Questioning Your Cash Options

The smart decisions we make are triumphs of judgments, while the bad decisions is an opportunity to learn. When it comes to structured settlements you may be questioning your cash options. If you have come into a lot of money, it would be beneficial for you to ask around about a structured settlement to consider for your future care and needs.

One option that may be presented to you by a financial adviser is to propose paying in recommended payments over a time, rather than one fixed sum after a plaintiff settles a case for a large sum of money. These payments can last over a period of time or extend through the claimants lifetime.

These well deserved, much-needed payments can change depending on the claimants needs which can include an immediate payment in order to cover for inevitable damages. Structured settlements are usually made through purchases from an annuity from a life insurance company.

A valuable advantage is tax deferment. If set up in an appropriate manner, it can greatly reduce a plaintiff's tax obligations. An added benefit of structured settlements is that you can assure yourself provided funds for future care and needs.

A disadvantage is that they are a fixed structure. It may not be to your best interests to settle in on this option of payment. You might want to start a new business or buy a new home, but you lack the assets. This keeps you in an avoidable situation until the next payments arrive.

Also, structured settlements do not work smoothly with investments. A lot of typical investments give long-term return than with annuities provided by the structured settlement system. In this case, you would be better off opting for a lump sum settlement.

Learn the availability of benefits that structured settlements can give you that best suit your needs. Ask all the questions to find out what is your best option. After all, one of the most important questions may be the one you are not asking. You can find out if a cash option for a structured settlement is best for you by seeking professional advice.

Information is a source of learning, but unless it is organized, processed, and available to the right people for decision making, it is more a burden than a benefit. There are decisions to be made if you have been a victim as a result of a wrongful injury. As a result of your injury, you may be awarded a settlement. If this is the case, and you still have questions regarding your award then you should obtain more information.

What is a structured settlement? They are set up when an insurance company or advisor offers you a cash settlement out of court in exchange for dropping the suit you have brought against their defendant. Through the settlement you would receive periodic instead of one lump sum.

Where does the funds from the settlement originate? The defendant in the case purchases an insurance annuity which is basically an investment with the insurance company. The idea behind this investment is that it will grow providing them with the funds they need to meet your financial obligations.

Are there any restrictions placed on structured settlements? There could be, it depends on the type of your contract. For example, if the law suit was on behalf of an injured child, the company may insist the funds only be used to toward the child's education. Or if the law suit was on behalf of an employee, the funds can only be exhausted on further required medical supplies or therapy.

Is there any way to terminate the structured settlement? It depends. Your original settlement agreement will have a termination date, when it has been paid. Or you can approach a structured settlement agency to purchase the annuities. The agency will take a share of the annuity and you will get the remaining funds. This allows you to also change to a lump sum if it better suits your needs.

A professional adviser is available for all your structured settlements questions and concerns. They can assist you in determining what is best for your situation. The information you obtain can help you in finding the best answers for your deciding on a structured settlement. The right answers can help you see the potential.

View the Original article

Understanding Structured Annuity Settlement

A structured annuity settlement can be explained clearly as a situation where in a certain insurance company releases cash installments as payment to a qualified person who met an accident. In circumstances like this, cash payments are given for every period or installment. In general, the claimant will receive this money as long as he or she is alive. The installment of the cash might be paid through several ways like lump sums, cash settlements or flat-rate amount.

You may wonder regarding the underlying mechanism which drives it? Structured annuity settlement is usually a long term contract. With this, it is very significant that the individuals involved, especially the one who will receive this, should understand several components such as payment schedule, settlements, amount per payments, policies, etc. It is also significant to possess pertinent documents like copy of annuity application and agreement. Remember that the regulatory and legal problems with settlement broker can be difficult to evaluate.

You may also wonder about the advantages of structured settlement annuity. For individuals who obtained settlement disbursements might look forward for a long-term financial security. Meaning, you have a peace of mind that even if something happens to you in the future, whether it is an accident or sudden health problems or other unpredictable circumstances, you are aware that you will receive financial assistance from the settlement. In addition, the money that you will receive from it is without tax as long as the structure of payment will stay as on what it is stated on the agreement. Understanding these advantages will surely convince you more to try this.

On the other hand, it will also be great if you understand the cons of structured annuity settlements. Even if it offers a lot of benefits, the cash value of the overall amount that will be paid will devalue. One of the reasons here is the recent recession of the economy, which can somewhat affect this according to some experts.

If you are considering getting one, it is very significant to consult a professional that will help you on your endeavor. Be sure to contact a person who truly understands this field. These individuals can be a CPA or MBA master's degree holder who can help you understand it very clearly.

The internet is also a great source for you to get more information about structured annuity settlement. There are several websites and articles over the internet that will help you familiarize this option. There are also e-books and other informational tools available online that can surely help you understand it. Just take your time when getting information over the internet and make sure that they are from a trustworthy source.

You can also visit the nearest financial institutions in your area, so that you can personally talk to one of their employees who is willing to teach you the advantages of having one. Be sure also that the financial company has a good reputation and track record so that you can assure that your future is in safe hands.

View the Original article

Why a Structured Settlement Payment Is a Good Choice?

Structured Settlements guarantees many advantages that make them a good choice. The main benefit of settlement is that it provides income at periodic intervals and the money is free of state as well as federal taxes. But, the interest accrued from investments made from cash gained through a lump sum is related to federal and state tax. Even, many individuals who come into money by acquiring a lump sum are unable to invest it opportunely and often spend it wastefully, this isn't possible with a structured settlement where small amounts are made available periodically and therefore an individual's spending is regulated.

Losing money that has been acquired through a Structured Settlement isn't as dangerous as loss of money acquired through a lump sum payment. The small amounts are easy to administrate and also don't excite the interest of elements as compared to strong lump sum payments. By this kind of payment, a person doesn't need to worry about planning for long-term investments as the periodic payments can be structured to take sufficient care of one's needs post retirement or in the case of a debilitating injury. Structured settlements are preferred by both the defendant and the plaintiff as they can be settled without they must go to Court. This saves time and is often cheaper for the defendant who would else have to pay more with an in-court settlement. The risks for the two parties are reduced with a structured settlement as per which the defendant is contractually must to pay the plaintiff. Even, attorney costs for an out-of-court negotiated structured are lower than what they would be if a controversy were to be filed in court.

Attorney reward can come down by as much as 8% to 10% for a structured achieved out of court. This can mean a saving of thousands of dollars for the defendant as settlements can often run into more than a million dollars! Structured settlements permits insurance companies to provide payment to claimants at a lower cost and the payment schedule can be established according to a claimant's convenience. A structured settlement also can be used to provide for certain costs of a person right from the stage when he is a minor. For example, the cash can be utilized to pay school costs. Periodic lump sums for an injured person can be used to make medicinal purchases and sustain oneself.

One of convenience reasons of structured settlements is that they can be availed in many formats; these include lump sum payments that are made periodically when funds are required for medical expenses, education or marriage; percentage increase annuities that offer annually increasing payments that help against inflation; deferred annuities that enable to defer the commencement of payment to a later date; period certain annuities that can be connected with a lump sum for receiving payment over an assured period; joint and survivor annuities in which payments are continued to the survivor annuitant if the first annuitant passes away.

View the Original article

The Debt Collectors: Who Are They? Why Are They So Rude?

We've all had it happen. An unfamiliar phone number appears on your phone, and you decide to answer. Immediately you regret your decision because on the other end is the dreaded debt collector looking for payment for some random debt item that you may or may not even be responsible for.

They begin to threaten you with credit reporting, penalties, late fees, and even lawsuits. The debt collector is rude, harsh, abrupt, and abrasive. They send you letters, emails, and call you nonstop. You are asking yourself why you deserve such horrible treatment from some stranger from some company you have never even heard of.

Who are these people harassing you with phone calls and threatening messages day in and day out?

Many times the company calling you to collect a debt is not the original owner of the debt that you owe, or that they claim you owe. Typically after 90 days or sometimes longer, an unpaid debt gets sent to an agency to take over the collection process. Why does this happen you ask? Many companies do not have the time or manpower to collect unpaid debts from people for long periods of time.

Those companies have many other departments of business to run. The debt collectors' only job is to contact you, in any way, shape, or form to fulfill an unpaid debt. Businesses or a person to take on the task of collecting debt, and take on no other roles hires them. Debt collection agencies usually consist of one or more call center locations comprised of employees that are trained to seek you out and hound you with communication about outstanding debt.

In recent times, debt collectors have taken on some scary ways of finding people to collect unpaid debt. They can track you down through social media networks, such as Facebook or Twitter. Sounds crazy, but it is true. Debt collectors can also use location services such as Foursquare, or even employment websites, such as Monster, to harass you with unpaid debt accusations. Good thing is, you don't have to take this abuse!

If a debt collector truly is harassing you, you can do something about it. Debt collection agencies are not allowed to be rude, abrasive, and unreasonable with you. If you are receiving such treatment from a debt collector, there are some things you can do to put it to an end.

Document All Correspondence:

Keep written documentation of all communication between you and the debt collector. More specifically, make note if the collector is being rude or unprofessional to you.

Speak to the Boss:

If the debt collection representative is being unreasonable, always ask to speak with a manager. If you do not get any better results with the higher-level agent, file a complaint against the agency. You can report their unnecessary behavior to the Federal Trade Commission.

Don't Ignore Them:

As long as the debt collectors have a way to contact you, they will not stop trying to contact you. The problem will not go away by itself. If you do not owe the debt they are referring to, then you should definitely not avoid the call and handle it properly.

In the end, if you have an outstanding debt that needs to be handled and are being hounded by debt collectors to pay the amount owed, then try to settle and reason with them to take care of the matter. If you do not owe anyone and are being accused otherwise, then you should definitely take all action possible to put the debt collection agency in his or her place and end the abuse once and for all. This may mean hiring an attorney and taking your battle to a courtroom. However your matter is resolved, refuse to tolerate any type of collector abuse.

Andrea DeLuca is something of a cross between a ninja & a warrior. Having overcame her battles with negative credit. We all have to start somewhere when it comes to restarting your credit. Andrea hopes to help others create a better and more thorough way of rising above the downfalls of having negative credit. Her main site: Rebuild Credit. Check back for great tidbits and to understand your credit better!

View the Original article

The Hottest Internet IPOs of 2011 - Who Went Big and Who Went Home

Over 24 Internet companies launched IPOs last year in the US alone according to Renaissance Capital. 2011 included four of the five largest US Internet IPOs ever - Bankrate, Groupon, LinkedIn and Zynga - raising $2.4 billion. However if you bought Internet or social-media IPO stocks in the past couple of years, you have probably lost money. According to Birinyi analyst Kevin Pleines, 18 of the 30 stocks are below their IPO price and 24 of the 30 are below their opening price on their first day of trading.

The slump has been attributed to slow growth in the U.S. economy and sovereign debt in countries including Greece and Italy. The economic concerns caused market volatility that made pricing IPOs difficult.

Internet IPOs from 2011 performing include Angie's List, Bankrate, Cornerstone OnDemand, LinkedIn and Zillow. OnDemand Media, Groupon, and Pandora are all well below IPO prices. The large China IPOs RenRen and Tudou are well listed prices as well.

Angie's List
Contractor and healthcare provider review site Angie's List waited 16 years before going public on November 17th. The IPO price was $13 and it rose to over $18 on the first day of trading. It closed at $16.42 on December 14th but had dipped below the IPO price early in the month. The company is not profitable.

Bankrate
Bankrate (RATE) has a long track record of operation since its founding 35 years ago. The company collects bank interest rates data and information on 300 other financial products from 4,800 banks and distributes to several newspapers and online publications. Bankrate Inc.'s initial public offering drew a weak response on the first day of trading as investors worry of high debt, past governance issues and lofty valuation.

Cornerstone OnDemand
The on-demand talent management company (US:CSOD) jumped 46.7% to close at $19.07 as its initial public offering. Cornerstone offers software-as-service that allows businesses to train employees and track their performance of their employees.

LinkedIn
This business-to-business social networking company went public on May 19th at $45 a share. On the first day, the stock rose to almost $110. At the time LinkedIn's underwriters - Bank of America, Merrill Lynch and Morgan Stanley - were criticized for setting the price so low. Analysts suggested LinkedIn should have been priced at $90 a share. However, LinkedIn is one of the few Internet companies that has never dipped below its initial offer and closed at $65.95 on December 14th, so perhaps the underwriters were correct in their conservative pricing. LinkedIn states that it has been profitable since 2006.

Zillow
This company provides real estate market information for consumers and real estate professionals. It was listed on July 20th when it was priced at $20 and went as high as $44. For most of September it ranged between $35 and $37.50 but closed at $22.13 on December 14th. Zillow became profitable in its first quarter as a public company.

Futurebooks is Singapore's and Hong Kong's most progressive bookkeeping company. The firm offers affordable incorporation, bookkeeping, business planning and business brokering.

Whether your goal is to be acquired or to be more profitable this quarter, we provide planning to keep your business on track and bookkeeping services that streamline the journey.

View the Original article

Selling Structured Settlement: How to Make the Most of It?

There are unfortunate instances in life where money gets swindled in financial institutions. Whether it is a large financial claim or a claim for a motor vehicle accident, delay in seeking financial help can be frustrating and annoying. In order to minimize the hassles, Sale of Structured Settlement is the most appropriate and easiest way out.

As a recipient, after selling structured settlement you will be locked into a payment schedule to receive periodic payments. It is the simple way to get the cash you need to meet your short term and long term goals. There are many benefits to claimants who opt to Sell Structured Settlement:

1. They are perfect way to meet the urgent requirement of large sum of money for the beneficiaries. In the event of medical emergencies, marriages etc, it is particularly helpful when the claimant is in need of quick payment.

2. They offer the recipient with the ability to mortgage the structured settlement document and seek a secure Structured Settlement loan against it. There are a large number of buyers who are willing to provide a loan against the settlement.

3. It is a flexible instrument which is beneficial for both company and the claimant. Besides providing decent periodic payouts to the beneficiary, it is beneficial to the company as well where it is able to defer the liability.

4. Selling your structured settlements for a lump sum money can somewhat help maximize the value of your settlement.

If you are thinking about selling your structured settlements, there are several things that you need to consider before dealing with a buyer. Look for a truly legitimate buyer to ensure you do not land in any trouble in the future. Guard against the buyer that intends to take advantage from your payments. This will help you save yourself from losing money.

A good buyer of structured payment starts up with general discussion and throws light on how the procedure will progress. Opt for a buyer who can provide you with a promise to make timely and quick payments. Check all the required credentials of the buyer. Staying informed about the legitimacy can save you from falling prey to bad buyers.

Getting clear and enough information about the basic transaction between the buyer and the claimant is important to clearly understand the different aspects of the process. Many online providers like Fairfield Funding aim to provide right solution to the claimants in a timely and precise manner. Check on the background of the buyer before making a decision to sell your structured payments to them. Landing on the right buyer will serve you with a trouble-free way to meet your needs and make the best of the structured payments.

View the Original article

Learn About Structured Settlements

If you want to know what a structured settlement is and how it works, this article might be helpful.

This form of arrangement is mostly concerned with the amounts of money paid to an individual after a suit. It also concerns itself with issues of tax reductions. If you happened to be a winning plaintiff in a lawsuit, you must have received some form of compensation from the defendant, whether a company or an individual. This monetary compensation can be paid in a single lump sum or in installments but in this case, it would be in installments.

This kind of settlement is tailored to allow you to receive periodic payments that are tailored for your needs. Most people would love to understand it as a form of trust held for you by the government from the defendant and paid to you in periodic terms without having to worry about income taxes.

However, for this to happen, you will have to have consented to this arrangement. Additionally, the defendant will be required to have purchased an annuity from an insurance or annuity company so that the payments may be done in installments. It is also important to pay attention to other information such as your ability to manage your own money. If you understand that then you will be able to find the arrangement good enough for you.

For as long as the compensation exists, you are guaranteed a source of earnings for a very long time. Further, since this is considered as an investment by some people, you will be able to manage your taxes. This arrangement will allow you to reduce the amount of tax payable.

The main advantage of structured settlements is that they guarantee the recipient a source of income for life. The recipient may also be able to drastically reduce the taxes paid on the money that would otherwise accrue from receiving a lump sum settlement. The major disadvantage of a structured settlement is that once it is agreed to the terms cannot be changed at a later date, although it is possible to later opt for a structured settlement factoring transaction that allows the recipient to sell all or part of expected future payments for an immediate lump sum.

Moreover, the settlement may also take other forms such as deferred payments or special provisions relating to the future care of the plaintiff or his beneficiaries in case of death.

View the Original article

Fast and Cheap Online Personal Loan

Cheap online personal loan is a term applied for short term loans, which is borrowed to cater to the personal needs but has to be paid back in the span of two weeks. However, there are certain financial institutions which give borrowers the privilege of paying back loans in an extended period once a partial payment is paid initially. Cheap financial loans are personal loans with no added fees.

Fast and cheap online loans are available for any personal financial crisis where the customers have to pay back only the principal borrowed as any additional interest rates are waived off. Basically, these loans are meant for contingencies and hence are easily and quickly available. To be eligible for fast and cheap personal online loans, one has to have a fixed income or a stable job. Borrowers are required to pay their salary slips as the proof of their income.

There are many instances where people are caught in difficult financial situations and hunt for the place where they can get hold of loans that are cheap and easy to pay. It is at this juncture that the cheap and fast online personal loan can be of great respite. There are many who are being benefitted from cheap and fast personal loans that can be easily obtained online.

In order to obtain cheap and fast personal loans, borrowers can apply by logging in to the official website of the financial company whom you are seeking help to. Cheap online loans are generally available for the amounts ranging from $300-$1000 and that can be delivered to the borrower on the very next day. For being eligible for this loan, the borrower should have been working in a good company for more than 2 months and should be able to furnish all the personal details to the lending company.

Cheap personal loans are granted once the application of the borrower gets processed. The amount required by the borrower gets delivered either to the doorsteps of the borrower or deposited to his bank account directly. One of the advantages associated with this loan is that there is almost no paperwork and the borrower gets the loan amount the very next business day and therefore it is a hassle free process.

There are certain requirements to be met for being eligible to fast and cheap online loans. For instance, the borrower should have a checking account of no less than three months old, borrower should be employed and should have steady source of income. Access to internet and to have a valid e-mail account is also important. There are several emergency situations which keep on arising from time to time where you are left in lurch because you lack financial endorsement. It is in this situation that you can just log on to the official website of the financial institution, apply there and get paid the very next day.

View the Original article

Back To School Prices Are Up And So Are Payday Loans

How much would you pay for a backpack? $20, $30, $50? A shopping cart of school supplies could cost upwards of $160. Now, what about school clothes? Even at a discount store, such as Kohl's, your grand total will be over $500. Remember too, that kids outgrow their clothes in about six months, so you will have to buy more.

In our economy, does this come as a surprise? Well, it shouldn't. The National Retail Federation predicted as such, retail sales are 14 percent higher than last back-to-school season. This percentage amounts to about $688 per family.

Spending $500 on school clothes and school supplies seem rather reasonable but kids also need computers, laptops and electronic tablets. Hopefully, you can find a deal for your electronic needs. You should figure at least $1000 for a decent computer and all the accessories for your child. Then, you may want a new computer too. So figure at least $500 more. Now, what about textbooks for your college bound student. Textbooks are about $100 or more a piece, and students have at least 4 classes requiring 2 books each.

Back to school sales are relevant to Christmas sales and the season is just as busy. Retailers such as J.C. Penney's, Abercrombie and Finch, and Walmart all vie for shoppers by offering deals, specials and sales. Even Radio shack is offering 10% to students on power strips and calculators, Staples offers a 15% discount on school supplies.

A minor warning, shopping online for school supplies could cost you 27% more than shopping in the stores. That's about $874.It's time to be more aware of where, why and how you shop. Beware the online shopping and the Gift card shopping. Consider this; baby boomers of the 50's now have children between the ages of 6 and 17. Baby boomers are a large part of these seasons' back-to school spenders.

With our small paychecks and higher prices, we all need extra cash. Should we use a cash advance for back-to- school supplies and clothes? This is a reasonable consideration. Back-to-school supplies only happen once a year and they are necessary. You can discuss this with your payday lender. A payday loan is short term and typically used for emergencies. The loans are usually from $50 to $1000 and the repayment is due by the next pay period. There are fewer requirements involved in obtaining a payday loan than for a traditional loan. There is no credit check and the borrower need only be 18 years of age with a job and an active bank account. The borrower needs to find a payday lender to obtain a payday loan. Payday lenders can be found in-store and online.

A payday lender should be licensed and debit insured. The payday lender is required to disclose all interests, fees and APRs before the loan documents are signed. Also, there should be a pre-arranged date set as to when the repayment is due. This due date is usually by the next pay period.

View the Original article

Are Payday Loan Lenders At The Core Of Mixed Financial Messages?

Payday loan lenders advertise easy cash to help with payments which cannot wait until payday. The online payday loan lenders did not create the initial debt or the living beyond income levels, so why do these lenders get the reputation for destroying people's credit? It's a mixed message deterring blame from one individual or company to another. Any legitimate payday loan lender would not go looking for a person to give a loan to, but just the opposite, the borrower searches out the lender.

How are future generations learning to deal with money? Children do not know what a credit score is, nor do they need to. What they do need to understand is that money is earned and how this money is used will depend on lifestyle. Parents spend years teaching children to save their money to purchase wants, but when they become of age to start getting their own line of credit, the messages are complete opposite.

The business world continuously sends the message that you can get whatever you want and if you sign with them, you won't have to make a payment for 12 months. Parents need to keep talking and explaining because the fine print is most often overlooked or not understood. A responsible payday lender promotes loans to help with an influx of unexpected costs, not to keep debt thriving by using the loans unnecessarily.

Credit cards companies prey on the materialistic side of humans by providing open balances with a quick application form often giving sign-up bonuses. These tempting gimmicks feed right into a young adult's dream of being able to purchase something without having to save. Instant gratification is a great pull into bad spending habits.

Financial education is a life-long process which changes with the ebb and flow of life. Building unnecessary debt at a young age will hurt a person later in life when financial options become important. Let's look at an example of a young man who may have been caught up on having access to a few too many credit cards. The young man was able to deck out his bachelor pad using promotional rates just for signing up for the cards. New furniture, computer, entertainment centers are all easily accessible when new cards carry with them balances itching to be spent. The young man has a job and works hard to make the payments. Things seem to go well, until the new car is needed. Applying for a car loan just got tougher with a high debt to income ratio. The demand on this man's income is keeping the struggle between paychecks more difficult to handle.

Will online payday loan lenders become a part of this man's financial journey? That would all depend on how well he was able to handle his debt. Those who get themselves too far into debt tend to have problems before payday loan lenders become involved. Mixed financial messages are developed before these short-term lenders get involved. Responsibility with money begins at an early age and should continue to grow with age and responsibility. It takes some forethought to make good purchasing and borrowing decisions.

View the Original article

Avoid Pay-Day Loan Mistakes

A common issue with a lot of folks is having to run flat out of cash all of the time. It may seem exaggerated, but it actually holds true to a certain few individuals. Don't these folks regularly find themselves out of cash because they don't handle their finances well enough? How often do you find the need to borrow money week or weeks before your next payday?

This is the basic reason why loan companies prosper greatly. They take advantage of your need and want for fast cash. The next thing you know, you're making deals with a payday lender already. Pay day loans are often called with various names. Some call them pay check loans of money advances.

Essentially, it's a kind of loan to be repaid on your next income or payday, plus interest of course. When you get a loan, giving your lenders access to your main account or ATM card should be expected. As soon as your next income is available, the lender then takes the amount owed plus interest. With today's technological advancement, all of these transactions happen at a very fast pace.

The question is, should you go for fast and instant loans? It actually depends on how much and how son you need the money. If it's for a life and death case solution, then it's really a no brainer.

If the situation can't really wait until your next payday, then it's a better option to get a payday loan. They are handy, but should be handled carefully as well. The next big question would be, can you afford to repay it plus its interest? One big mistake common to borrowers is that they tend to borrow money without thinking of how to repay them or whether they can. For those who have a steady income, this wouldn't be much of a problem. Therefore, before ever thinking of borrowing an amount, make sure you can afford to pay it with its interest carried.

When will you repay the loan? Interests can accumulate within time, and these types of loans usually carry large interest rates. Payday loans should be paid the earliest time possible. Not paying such debt can really get you into a great difficulty. The bank can blacklist you, and your chances of taking loans in the future will be slimmer.

Are you planning on getting a loan to repay another one? This is usually the case with most borrowers who rush on borrowing without any plans or thinking whether repaying is some he/she is capable. It is obviously a bad practice, and a habit that will not be good to develop. Constantly getting yourself into this situation will bring you to a situation where you can't possibly afford to repay everything you owe anymore, All because you wanted to buy things that's not really a necessity as of the moment.

Did you do some research? People who are in need tend to borrow on the first lender they know of without comparing different options from different payday lenders, thus landing them to the least favorable deal. Do some research and do yourself good.

Are you aware of your country's laws with regards to these types of loans? Naturally the laws pertaining to these types of loans vary from 1 state to another. Being unknowing with the laws will allow the lenders to take advantage of you by violating some laws (like exceeding the minimum allowable interest rate, etc.).

Being careful in avoiding such mistakes is the key to make payday loans a great option and solution for your financial situation.

View the Original article

Where to Find the Right Lawyer For Your Debt Settlement

In the times of economic downturn, there are various individuals who are burdened by mounting debt. This debt can have various repercussions for your business. One, you are always under the threat of the creditors who will keep calling you for the debt. In certain cases, these creditors might even hire a debt collection agency which is even more aggressive in its approach towards debt collection. Secondly, incessant gathering of debt will only land you in further trouble and can even develop a situation of bankruptcy.

Debt Settlement- An Introduction

Debt Settlement is an effective way of moving out of the worry. As the name suggests, this method entails the settlement of the debt with the help of negotiation between the debtors and creditors. This negotiation is, generally, done by agencies for the same. These agencies, through negotiations, will try and ensure that your total debt liability is reduced to the minimum possible.

So, how does it work? It starts off by enrolling in the program with a specialized agency or law firm. The law firm will gauge your financial condition and the debt that is still not cleared. On the basis of the same, it will advise you of the likely percentage that a debt can settle for, which may include an installment plan. You are required to pay this monthly installment to the company you owe for a pre - disclosed time period in order for the debt settlement to be effective. The money that you pay is a full settlement of the debt, meaning that the lender can never try to collect that debt in the future.

The important part of this system is that you must have some amount of money that can be used to negotiate with. Therefore, this can be helpful at the time of negotiation. Once a fixed amount is reached to with the creditors, you are allowed to pay the remaining amount at once or in the form of installments. This process, in general case, brings down a considerable amount of your debt.

Things You Should Not Miss:-

There are certain things that you should be sure about while entering into this contract.

1. You have to know that this procedure is perfectly legal and there is no element of manipulation - you will be required to pay something to get out of the debt.

2. The agencies are required to adhere to state and federal laws. There are many agencies which violate some or more of these laws. It will be advisable to stay away from these firms.

3. A debt settlement law firm is a federally designated debt relief agency.

4. There should be a proper and written agreement between you and the agency or attorney. The contract should have all the details and the necessary provisions.

While this is a great way of saving you from debt that you cannot pay, you have to ensure that you are not making use of it for any unscrupulous purposes. Only genuine requests for settlement of debt are considered by the law.

View the Original article

The Other Cost of Debt

Nowadays a lot of products are invented and sold in the market, some of which are created not necessarily to fill the needs. These companies and multinationals spend a big fraction of their budget for advertising to lure buyers. They create so-called needs for the people when in fact they are just luxuries. Well, it is innovation, maybe. It is business.

Perhaps enticed by these products, you spurge left and right, swiping your credit cards as though there is no tomorrow. Remember the movie Confessions of a Shopaholic? Sometime, people tend to be guilty about it. However, the reality is that our life is not a movie that someone must direct us what to do to make it a happy ending.

More than the financial costs of debt, there is one factor that is detrimental if left unheeded and unsolved. This may cost more than your wealth simply because nobody can buy it. When you lost a thing, you say, "it's just a thing, I still can buy it." But when the emotion is involved, it's something that is serious and it needs careful attention.

When you are unable to pay your debts on time due to financial scarcity and whatnot, it leaves you feel desperate and not in control of your life. It's like someone is controlling you. The worst thing to happen is to deprive yourself of the things that could make you stay healthy and happy. This can eventually lead to loss of confidence and, to some extent, this has an abysmal effect to one's sense of self.

The emotional consequences of debts can also affect the people around you. It can harm your relationships with your family, friends and loved ones just like a lot of failed marriages are rooted in money problems. While somehow it has an advantage to your work performance as it would push you to do more, to perform more, which apparently beneficial to your employer, there should be a long term solution to your debt problems.

In the midst of all these negativities, debt should not only be construed as bad, useless, detrimental and whatnot. Debt is good as long as you know how to use it and how you handle it. Debt exists to fill in the scarcity for the mean time. However, a careful planning must be in place before anything else.

But when everything falls into negativity, find a good solution rather than turning you back from the reality. There are a lot of solutions available today. Negotiate with your creditors. Several debt management plans are now available. Seek advice from the experts. And most of all spend responsibly.

View the Original article

Credit Card Debt - Tips For Paying It Off

The rich rule over the poor, and the borrower is servant to the lender. (Proverbs 22:7)

The above scripture is one of the reasons why you should aim to get out of debt quickly. If you are struggling with credit card debt, these practical steps can help you reduce it and pay off your outstanding balance much quicker -

1. Call the credit card company and renegotiate the interest rate on your cards starting with the card that has the highest interest rate. The so called fixed interest rate can be changed - all you need to do is ask. Follow these simple steps:

Browse comparison websites to find offers and companies with the lowest rate who are willing to acquire your credit via a balance transfer (most credit card companies do this).

Call the credit card company and request that either your interest rate be reduced or you will move your credit to the company you identified above with a cheaper rate. Give them the name of the company to show that you are not bluffing but telling the truth.

Don't negotiate with the customer service person that answers the phone; make sure you request to speak with a supervisor or manager to show that you are serious about leaving. The company is likely to lower your interest rate because it will cost your them more to lose you to another credit card company than to lower your interest rate.

If they don't lower it interest rate, move your credit to where you will get the best rate. This will make it easier for you to pay off your debt without cumulative interest.

2. The above steps can also be done with late fees, go back to the credit card company and negotiate any late fees you have paid to be refunded to you, especially if you have been paying your bill on time lately. This is not a rip-off strategy, instead you are demanding a refund on the basis of being a loyal customer. Most times, they would rather also credit it back to you than let you go. The secret is in just asking.

3. Another thing that will help reduce your interest rate if you have more than one credit card is consolidating all of your debt in one card. This will not only reduce your interest but also keep your focus in one place since you will have only one repayment amount.

4. If you do not want to consolidate your debt, you should systematically pay it off starting with the credit card that has the highest interest rate. Make the minimum payment to the card with low interest rate and more to the one with the higher interest rate.

5. Automate your monthly payments by direct debit or standing order to avoid late payment fees.

6. Get your credit score and credit report from any reputable credit rating company. The report will contain ways to improve your score. Follow the necessary steps to improve your credit score.

7. Browse mail control companies such as this one and stop credit card companies from sending deals to your home address. Unsubscribe from all credit card correspondence whether via email, text etc, as this will avoid the temptation of taking up yet another tantilising offer.

8. Get free anonymous debt advice from charities and government agencies such as the Consumer Credit Counselling Service, Christians Against Poverty or Citizens Advice Bureau.

View the Original article

Credit Card Debt - The Silent Financial Killer

Technological innovation ruins people's vagaries. It has a tendency to accommodate every human caprices. It nourishes on people's never-ending hunger for quick, immediate, and hassle-free. More frequently than not, it also brings about plenty of problems - that is, financial problems by means of credit card debt.

Credit Card comfort vs. Credit Card Debt

We frequently see people take out "plastic" to pay for every little thing they require. Why not? When all it requires is an easy run of the card via a small electronic box and a signature then, everything's fine. You go home pleased, satisfied, and practically without worries. However, not everyone understand that the comfort of utilizing credit cards can result in a bogus sensation of financial security. And this acknowledgement will hit them the moment the bills show up.

Actually, research indicate that credit card debt and personal bankruptcies have boost bank revenue to the maximum level in the past five years. It only indicates that a growing number of card owners were not able to control their finances. If you are a card holder and having some debt problems at this initial phase, it's now time to consider the probable consequences of this small problem so that a more critical issue would discontinue.

Credit card supplies people with a sense of invincibility. And it also presents them a great deal of anxiety about their financial management ability when they experience complications with their debt. Despite the fact that it is true that credit cards remedy financial concerns, particularly when it relates to protection and ease, it also results in trouble, particularly when the person making use of it doesn't know what he or she is stepping into.

Without a doubt, repaying debt may take a very long time particularly if the person has high interest rates. But it doesn't mean that you can do nothing about effective control of your debt. When you see yourself bogged down with debt, don't get caught in an abyss of melancholy. You can cope with it through self-discipline and a switch in spending behavior. Begin eradicating complications with credit card debt by obtaining tips and techniques on how to settle your account balances the easy way, how to negotiate frequently encountered issues, search for free debt consultation specialists that can assist you, and try inch by inch to discover ways on how you can restore your financial independence by minimizing your debt.

The Power to Eradicate Credit Card Debt

People who are experiencing difficulties controlling their card debt or those who are close to personal bankruptcy usually don't fully grasp that the power to eradicate their debt issues is entirely in their hands. Nowadays, an increasing number of people require credit card debt support. The major issue is that these families are experiencing hard times having to pay high interest. And rather than removing the burden, a lot more people are paying out much in interest every month compared to the specific investment.

There are basically more lawful and ethical methods to zero out thousands of dollars in credit card debts. And if you just spend some time to examine and know your rights and how bankruptcy laws have evolved, you will learn that there are beneficial information to get rid of debt. In fact, the opportunity of lowering or doing away with the high interest is now more achievable when a person takes action to get his or her finances under control.

In addition to figuring out your tool, it is very essential that you grow a sense of management and determination first. Considering that the credit card debt eradication procedure demands organization, understanding, and dedication to your own progress, it is a must that you are completely ready for the obligation and to remain free and impartial.

For all those people who contemplate getting a credit card essential but scared of having one due to the risk of debt headache, you must bear in mind that these can be a highly effective tool in controlling your finances, but there will often be snags when not employed correctly. Obviously, there are plenty of causes why you should and shouldn't get one based on your requirements. Whether or not you make your mind up to get one, controlling finances continue to take a sense of good budgeting, determination to modify spending behaviors, and the humbleness to take advantage of low interest loan consolidation when you are currently weighed down by too much credit card debt.

View the Original article

Debt Collection Laws Protect You Even If You Do Not Owe The Debt

The Fair Debt Collection Practices Act (FDCPA) has been around for almost 35 years. It is a federal law that applies to every state. In other words, everyone is protected by FDCPA. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining debt validation information in order to ensure the information's accuracy. It creates Debt Collection Laws as guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the FDCPA. It is essentially a laundry list of what debt collects can and cannot do while collecting a debt, as well as things debt collectors must do while collecting a debt.

People should be aware that FDCPA protects debtors and non-debtors alike with the implementation of Debt Collection Laws. That is, everyone is protected by the it, even if you do not owe the debt. The Fourth and Eight Circuits, in Rawlinson v. Law Office of William Rudow and Dunham v. Portfolio Recovery Associates, LLC, recently held that whether or not someone owes the debt is immaterial for an FDCPA claim. The legislative history of the FDCPA supports this finding, too:

This law also protects people who do not owe money at all. This is also stated in the Debt Collection Laws. In the collector's zeal, collections effort

View the Original article

Getting IVA Advice That You Can Trust

The IVA, which stands for "Individual Voluntary Agreement," has been established as an alternative to bankruptcy. However, before you take advantage of that alternative, you will certainly want to get yourself some reliable advice from a legal professional.

An IVA may not actually be the best option for you, and even if it is, there are some common pitfalls which you will obviously want to avoid. By getting some proper IVA advice prior to committing yourself to any particular course of action, you will be able to do just that. Before you even get that far, though, it can be helpful to review the basics, which we'll do right now.

What an IVA Actually Accomplishes

At its core, the purpose of an IVA is to establish a healthy relationship between a debtor and his or her creditors. Those two parties are who the "agreement" is made between. Obviously, the terms of the agreement must be beneficial to both parties. That is why it is necessary for you to seek your own IVA advice from an independent legal professional prior to establishing such an agreement.

Standard Terms of an IVA

Under the standard terms of an IVA, the primary benefit to your creditors is that they do indeed recoup some of the money you owe them. In a traditional bankruptcy, they wouldn't be able to. As you might have guessed, a bankruptcy will do far more damage to your credit than an IVA will, which is the primary benefit from your perspective. Another way in which an IVA will benefit you is that it will freeze the interest rates on your loans.

The Typical Process

Once you've had some IVA advice and decided that this is the route you'd like to take, the first step is to draw up a plan on how to repay your debts. Part of this plan will disclose your assets to your creditors so they can be sure the terms of your plan are fully equitable. The next step is to petition the court regarding the agreement so the parties can meet to officially accept its terms.

Special Situations

An IVA is particularly beneficial to people who own properties that could be seized in the absence of such an agreement. As a matter of fact, there are some situations in which an IVA would be beneficial even after you have declared bankruptcy. If you think an IVA might be beneficial to you for any reason, then we urge you to contact a legal professional for sound IVA advice at your earliest opportunity.

View the Original article

Reliable Ways to Build Your Credits After a Bad Credit History

With people's desire growing by the second, many of us in today's world are faced by the situation of a bad credit. People find difficult to come to terms with a poor credit situation let alone trying ways and means to sway the momentum back in their favor. A serious or rather a defining point in the process of setting things right is to note that cleaning up poor credit is not Herculean and can be made possible by following a few positive steps that could let you to see the light at the end of the tunnel.

A general trend associated nowadays is that people feel the process of stabilizing credit is best done with the support of companies, which claim to be experts in the technique. Although things can turn out to move on as expected when companies are approached, a critical fact that nonprofessionals need to take note of is that fixing of one's own credit is the best way to fix a circumstance of poor credit. Moreover, if you want to utilize loans and get better rates of interest, a situation of outstanding credit must be fully ensured. Banks take account of credit history and the credit rating history to approve loans. Therefore, it has become a truly critical aspect in the life of people to keep their credit score and credit ratings in clear terms and most importantly, stable.

If you are experiencing a ruined credit situation, here are a few steps that can be followed:

Review your Credit Status on a Timely Basis
This is a particularly crucial aspect, which most of us fail to accomplish. Reviewing credit situations forms an integral role in staying financially strong and avoiding unnecessary financial tides. Moreover, it helps you plan well and financially stable.

Approach the Credit Bureau Often
A copy of the current credit status can be requested from the Credit Bureau. Perusing through reports helps you spot errors and help in fixing them. Moreover, regular credit status requests help you maintain a steady balance of your finances.

Outstanding Debts
To establish legitimate credits prioritizing outstanding debts in the proper way is critical. It is necessary to pay off prominent debts that have the highest rates of interest if the question of priority is to be apprehended. Clearing outstanding debts is pertinent in assessing your capabilities to maintain a balance of finances.

Clearing Overwhelming Debts
If debts are overwhelming, approaching a credit counselor is the best thing to do. A counselor helps in addressing the pros and cons of the credit issue and advising you on taking concrete steps in fixing faulty credits. Some counselors also resort to contacting debtors, thus bringing the situation under control.

Denounce the Credit Card Sage
Cards have to be cut out if you are facing a situation of poor credit. In addition, staying at a good distance from companies offering debt repair loans and poor credit loans is something that must always be kept in mind. Liquidating of assets will help in consolidating your debt and steering you towards a recovery.

Following these easy steps will surely help you solve the jinx as it exists and swings the momentum towards debt consolidation and subsequent recovery. A poor credit history is never going to serve the purpose. Always look at ways to improving and presenting a better credit report every time you determine your own credits. This is the best way to build credits.

View the Original article

Advantages of Filing Bankruptcy in Alabama

When filing for a bankruptcy in Alabama, there are two basic forms. Debtors can choose to file a Chapter 7 bankruptcy if they cannot handle their bills and need a way out. With a Chapter 13 bankruptcy, debt is restructured so the individual can pay it off over a period of five years.

The Benefits of Each Form of Bankruptcy

For the majority of people, a Chapter 7 bankruptcy is the best form. It is faster than a Chapter 13 and can be completed in a matter of months. Chapter 7 bankruptcies will effectively wipe away all of the person's debts. Once the debts are gone, the debtor can begin to rebuild their credit over the course of the next few years.

If the debtor wants to keep their assets, they can choose to do a Chapter 13 bankruptcy. With this option, the debtor gets to keep all of their property and goods. In exchange, the bankruptcy filer has to make payments over the next three to five years. Debt is restructured and a trustee is put in charge of making debt payments. The debtor just has to give a monthly amount to the trustee and the trustee will make payments to the various debts.

Most people will be better off with a Chapter 7. Unless the debtor has a temporary loss of income or short-term rise in expenses, they will find it difficult to make payments over a five year period.

Alabama Specific Rules

If the debtor chooses to file bankruptcy in Alabama, they will have a few specific exemptions and rules. Debtors are allowed to keep certain pieces of property provided they have enough equity built up and the loan payments are current. For real estate property, debtors can keep up to $5,000 of equity. The property cannot exceed 160 acres in size. If a husband and wife are filing for bankruptcy, the amount can double.

Bankruptcy claimants can receive annuity or disability proceeds of amounts less than $250 a month. Money that comes from life insurance policies can be kept if the beneficiary is the spouse or child of the debtor. Alabama state law also allows the debtor to keep any benefits from a mutual aid association.

Pensions and Public Aid

Within the state of Alabama, debtors are allowed to keep their pensions only if they are a public employee. Debtors must be former judges, teachers, state employees or law enforcement officers to retain their pension. In addition, the state of Alabama has ensured that blind, aged or disabled debtors can keep their public benefits. According to state law, any proceeds from unemployment compensation, worker's compensation or crime victim's compensations. Recipients of Southeast Asian War POW's benefits or coal miner's pneumoconiosis benefits are also allowed to keep any money given to them.

Personal Property Exemptions

When filing for a bankruptcy, the state law of Alabama allows debtors to keep certain items of personal property. Debtors are allowed to keep any of their books, family pictures and any clothing that is necessary. Church-going individuals are allowed to retain their family pew and burial plots.

Debtors who are still a part of the military are allowed to keep any equipment that is required for the job. They may retain their arms, uniforms and military equipment.

Any bankruptcy claimant who is working may keep a minimum of 75 percent of their unpaid wages. If the debtor has a low-income, the judge for their case may allow them to keep a higher portion of their wages. Alabama state law also has a wild card provision for debtors. The law allows any debtor to keep $3,000 worth of personal property. This property can include any items the debtor wants except for life insurance.

Filing for Bankruptcy

In the state of Alabama, debtors must take a means test to determine which type of bankruptcy will work best for them. According to the law, any debtor who has an income below the state median may file for Chapter 7 bankruptcy. Debtors who make more than the median must pass another series of tests if they wish to file a Chapter 7 bankruptcy.

Debtors who can pay at least $10,000 over five years will most likely have their Chapter 7 bankruptcy turned down. For individuals who can pay at least $6,000 over five years, a lawyer or the judge will calculate how much the debtor can pay. If they can afford to pay off at least 35 percent of the unsecured debt, a Chapter 7 bankruptcy claim will be declined. Unsecured debt includes various credit bills or medical expenses.

To get started with the bankruptcy process, debtors should contact a lawyer. An experienced attorney can help guide debtors through the confusing process of claiming bankruptcy. Debtors should gather all documents pertaining to their property, a list of debts, records of major transactions, income statements and tax returns for at least two years. If the debtor owns a house or car, they should also bring their car titles, house deed and documentation of their loans.

Once all of the paperwork is in order, an attorney will determine what items are exempt under Alabama state law. After the paperwork is turned in, an automatic stay is placed on all of the debtor's loans and property. From that moment onward, creditors cannot contact the debtor or start foreclosing on any property. Many people who are in foreclosure will often start the bankruptcy process as a means to avoid foreclosure for a period of time.

The Trustee

As the bankruptcy case continues, all of the debtor's property and debts will be put in the hands of a trustee. This trustee will manage any money or property and divide it among the debtor's creditors. If the claimant files Chapter 13 bankruptcy, the trustee will manage their monthly payments for the next five years.

Filing for bankruptcy in Alabama offers debtors a few benefits. Debtors can keep a portion of their unpaid wages and retain a great deal of their property. Before filing for bankruptcy in the state, debtors should always contact a qualified attorney. Only an experienced lawyer can help the debtor to figure out the various filing procedures and navigate the legalities of a bankruptcy case.

View the Original article

What If Bankruptcy Wasn't An Option and Didn't Exist?

I don't doubt that many people are able to save their financial skin by finding a bankruptcy lawyer and filing for personal bankruptcy. It seems to happen all the time in our society, and unfortunately it happens too much. If you've ever owned a business, and had someone not paying their bill, and then when you call them up, and they tell you they just filed for bankruptcy, it kind of lets the air out of your sails (and sales) for the day.

Now then, what if we did not have bankruptcy laws, and we didn't have bankruptcy lawyers? If that were the case do you think that more people would be more careful when it came to signing their name on the dotted line to borrow money? I think it certainly might, and it is unfortunate that most Americans cannot balance a checkbook once they graduate from high school, and that they might buy a home on a mortgage that they really can't repay, because they haven't honestly looked at their budget, or met the realization that they don't have enough money saved in case they lose their source of income or employment.

In other countries and in previous times there are or were debtors prisons, and places where people could work off the money they owed, until it was paid in full. This protected business owners, banks, and those who lent out money. Today, with our entitlement society, people don't think very much about the contracts they sign, or how they are going to pay back all the things they bought on a credit card, or on credit. That's very unfortunate.

Perhaps what is worse is that bankruptcy lawyers advertise on the radio telling people that they can get them off the hook for the money they owe. That seems rather unfortunate that they are putting the idea into the minds of consumers that they don't actually have to pay for the things they promised to pay for, of course they do, they have to pay for those things, but apparently if an attorney says they don't, and files a piece of paper with the court, they can ditch those obligations without regard to the other party.

Then the same consumers and citizens justify it in their minds that it's okay because they owe the money to a big bad corporation, or someone in the 1%, and that they deserved to get free stuff and have someone else pay for it. It's just this sort of attitude that is being perpetuated by bankruptcy lawyers, and even the Teleprompter in Chief. If we don't stop this lackadaisical attitude towards personal responsibility, we are headed for a big financial disaster. Indeed I hope you will please consider all this and think on it.

View the Original article

What to Look for When Hiring a Bankruptcy Attorney

Being financially distraught and filing bankruptcy can be a very stressful and emotional time in one's life. This is why it is necessary to hire a bankruptcy attorney that will make the process still a lot smoother. The last thing you need is paying someone for the little bit of money you have left and having the goofball never returning your calls.

When it comes to finding the proper bankruptcy attorney, remember that filing bankruptcy is a group project. To be successful, everyone needs to be on the same page and work together well. This includes the staff that works at the law firm. Nothing is worse than losing confidence in your bankruptcy attorney because you feel that you are not getting your questions answered and no one is paying attention to your concerns.

Before choosing an attorney, one should get themselves a basic education on bankruptcy filing. The easiest way to do this is spend a little bit of time online searching different websites that have information that you feel is applicable to your case. Make sure the information is current and local to the area in which you reside and will be filing in.

Now it's time to interview a few bankruptcy attorneys. It is not totally necessary to interview more than one if you're comfortable with the first one you meet. If there is any kind of tension or there are bad dynamics going on in the office, it's best to look at a few others before making your decision. You have to remember that this person is in control of your financial destiny and you have to trust them fully. If there is a lack of trust or communication problems, you should probably look for a different bankruptcy attorney. One should feel totally comfortable sharing all their information with their bankruptcy attorney. When someone is intimidated or embarrassed they might decide to hide information from the attorney that might be pertinent to a successful bankruptcy discharge. Remember, you are hiring this person to help you not to impress them. Let the bankruptcy attorney decide what is important and what is not important. Throw all your cards on the table and let them shuffle them.

One thing that is irreplaceable with bankruptcy law is experience. Lately, with a large amount of people filing bankruptcy, many attorneys have added bankruptcy law to their practice. One should be careful because the new bankruptcy code has added complexity making experience a must. Make sure the attorney explains the entire procedure in layman's terms not legalese. Before signing any retainer agreement make sure that you understand the terms and there are no hidden costs. If you feel comfortable discussing personal matters with the bankruptcy attorney, you might have found the one.

When filing bankruptcy timing is everything and the proper attorney will know exactly when to pull the trigger and when to hold off. The only way someone will know if bankruptcy will help them is to get their feet wet by interviewing a few bankruptcy attorneys.

View the Original article

What A Bankruptcy Attorney Will Tell You

A bankruptcy attorney specializes in helping individuals to properly conduct bankruptcy proceedings. In this process, the individual or couple will petition the court to discharge their debts so they do not have to repay them. This is often done as a method of reducing the amount of financial difficulty that the individual is dealing with, such as too much credit card debt or medical debt. A lawyer is not a requirement, but it is strongly encouraged under law. In addition, the process is complex. Discussing the case with a lawyer is always the first step for those considering this process to determine whether or not they should proceed with the plan.

Do You Qualify?

One of the first things a bankruptcy attorney will discuss with individuals is their ability to qualify to file. There are federal guidelines that must be met. Individuals must be at or under the state's median income in order to qualify. If they are not, they must pass the Means Test by proving they have extenuating circumstances and high, necessary expenses. Additionally, individuals must not have filed Chapter 7 in the last eight years.

Is This A Good Decision For You?

One thing to remember about these lawyers is that they do more than just help to fill in documentation. They also work on behalf of the individual filing. They offer advice and guidance. It is their responsibility to ensure that the process goes as smoothly as possible. As such, they also have the ability to work with individuals closely in determining if filing is a good option at all. For some, it may not be the best decision even if they qualify to file. This is where the lawyer can step in and potentially offer other debt management help.

How To Get Through The Process

From the filing of the paperwork to dealing with the questions of the bankruptcy trustee, the lawyer will help throughout the process with many important steps. This includes the Creditors Meeting, in which the individuals filing must come into the courtroom to answer questions and to potentially meet with creditors, if they decide to challenge the case. The lawyer hired is right there to provide guidance and to ensure that the best possible outcome occurs.

This big step will have lasting financial consequences for many people, but for many who file, it is the best possible way to overcome the financial burden they are dealing with on a daily basis. With the help of a bankruptcy attorney, it is possible to overcome these limitations and to move on to a successful financial future. To do that, set up a meeting with a lawyer to discuss your case and answer your questions.

View the Original article

How Can I Hire a Bankruptcy Attorney If I Can't Pay My Bills?

When most people file for bankruptcy, they have already waited too long and are probably completely broke. In a perfect world, when times are getting tough, the smart thing to do would be seek the advice of a bankruptcy attorney before their world is completely upside down. As Americans we tend to view the world through rose-colored glasses because of the way we were raised. Many Americans started losing their jobs during the economic downturn that began in 2008. The economy is still in the tank and so is the job market. Many people believed real estate and the economy would bounce back quickly and they could take their time looking for a job. Instead, many of these people waited too long and their unemployment insurance ran out leaving them with zero dollars income. This is when people typically start selling personal property and any valuables they might have to keep the ship afloat. The sad thing is, filing Chapter 7 bankruptcy could quickly eliminate all the stress caused by the bills that are piling up. People don't need to worry about losing all their property by filing bankruptcy. The bankruptcy code allows for generous exemptions to protect a person's property. It would be pretty hard to give someone a fresh start if you took away everything they owned and sold it to pay off creditors. That's why Congress included bankruptcy exemption laws to allow a person to protect the necessities.

One problem many people have when waiting too long to file for bankruptcy is coming up with the money to pay the bankruptcy filing fees and hire a bankruptcy attorney. In some extreme cases, the people that bury their head in the sand might end up losing everything prior to filing bankruptcy making them essentially too broke to file. For this group, basically they have nothing to lose so why waste the money filing? Even if the creditors began suing them and got judgments against them, there would be nothing to attach.

Good advice would be to consult a bankruptcy attorney when times start getting tough. This will give an individual an out if things don't turn around in their financial life. Having that knowledge of options that are available to them can be invaluable to their recovery. Sometimes it might be as simple as some kind of debt settlement negotiated with the creditors. For those that have a large amount of unsecured debt, it's foolish not to consider filing Chapter 7 bankruptcy. At the end of 2011, it was reported that the average American has close to $16,000 in credit card debt. Considering this same person only makes about $35,000 a year, there is a good chance that they will never be able to pay this debt off in a lifetime outside of winning the lottery. Most Americans are kicking the can down the road and just getting by another month. At some point in time when disaster strikes, the wheels will fall off and the options will be much more limited for that individual. What does it hurt to take the time and consult a bankruptcy attorney before it's too late? There might not be anything there, but if there is it might be a lifesaver.

View the Original article

If I File Bankruptcy Will I Lose All My Stuff?

Many individuals avoid filing bankruptcy because they're afraid that they will lose everything they own to the bankruptcy court. This actually would fall under bankruptcy myths and legends found on blogs on the Internet. I don't know where anyone got this idea, but until lately it has been a popular opinion. I believe that this is one of the reasons that people use bankruptcy filing as a last resort to resolve debt issues. This rumor has gone around for years and many experts believe it was probably started by the credit industry. The creditors and debt collectors have told doozies over the years with the idea of scaring people into continuing to pay their debts. Some creditors have gone as far as telling the debtor that if they didn't pay their debts they would be arrested and thrown in jail. The last time I checked, there is still no debtor's prison in the USA. As long as people keep falling for these tactics, I suppose the lies will continue on.

When an individual decides to file bankruptcy and sits down with a bankruptcy attorney, the first question they will ask is, "Will I lose all my stuff?" Typically, the bankruptcy attorney will explain the bankruptcy exemption laws and how they work. The idea of getting a fresh start from filing bankruptcy can't happen if you take everything away from the individual. This is why Congress enacted generous bankruptcy exemption laws to allow an individual to protect a certain amount of property when filing Chapter 7 bankruptcy. On top of that, in today's economy, used personal belongings don't have much value as they did in the past. The last thing a bankruptcy trustee wants to do is load up the truck of used furniture and head on down to the swap meet to liquidate it. The bankruptcy trustees always weigh the time versus the reward for selling nonexempt property. And this is totally only in the case of property that is not protected by an exemption law.

The property that is on the radar of the bankruptcy trustee is valuables like antiques, a car, bank accounts and/ or real estate. Once again, it depends heavily on how easy it is to liquidate the property. If something will take a long amount of time and only recover a small amount of cash, they probably won't waste their time. This is another reason why hiring a bankruptcy attorney can be invaluable. The bankruptcy attorney that practices in that district will know the bankruptcy trustee and know what is allowable and what is expected of the debtor to get a successful bankruptcy discharge. This will make the entire bankruptcy run smoothly from the filing of the bankruptcy petition to the bankruptcy discharge.

View the Original article

Chapter 7 Attorney: Moving Past Bankruptcy

While it can be difficult to make the decision to hire a Chapter 7 attorney and move forward with bankruptcy filings, it is sometimes the only decision to make. What can be even more difficult, of course, is moving back from the brink. There are no two ways about it: filing for bankruptcy is not a great thing for your financial records. The repercussions to your credit report are serious and unavoidable. It will take several years for you to rebuild that credit, but it can be done. Your first steps will involve finding a new outlook on financial responsibility. Here are some of the ways you can move past this unfortunate period and beyond bankruptcy.

Emergency Funds

If you find a Chapter 7 attorney who is willing to provide you with advice on the future as he is helping your through the process, he may recommend starting an emergency fund. One of the easiest ways for an individual to get in trouble with credit cards is when an emergency pops up. The car breaks down, for instance, or medical bills suddenly demand your attention. After bankruptcy, you may not have a credit card to rely on anymore, so you need to make sure you have the money to take care of these incidents as they occur. Vow to put away a certain amount of money each month for just such an eventuality.

Budget

Any Chapter 7 attorney you talk to will tell you that most people have little idea how much they spend in relation to how much they bring in. They probably think they know, but unless you sit down and make a budget, you are walking a tightrope without a net. This is especially true once you have no credit cards on which to rely. Make your budget. Figure out exactly how much income you're bringing in and then write out your expenses. You may realize quickly that you either aren't bringing in enough or you are spending too much. If this becomes apparent, you'll need to fix something on one side of the equation. It's usually easier to cut expenses than it is to increase your income.

Rebuild Your Credit

A lot of people make the mistake of thinking that since bankruptcy is erased from your credit report in seven years, they will be eligible for a loan in exactly that time. That's not always the case. You still have a large gap in your credit history that banks will not look on favorably. Try to close that gap. Apply for a secured credit card and begin rebuilding your credit history in the meantime.

View the Original article

Why Businesses Need a Bankruptcy Attorney When Filing Chapter 11

Though some businesses that have difficulty meeting their financial obligations opt to file a bankruptcy to liquidate their assets and close the doors - called a Chapter 7 bankruptcy - other businesses decide to remain operating, and thus pursue a bankruptcy allowing them to reorganize their debts - called a Chapter 11 bankruptcy. Though a Chapter 7 is not as simple as putting a "For Sale" sign on the business' front door, a Chapter 11 is much more complex. Thus, it is very important for a business that pursues Chapter 11 to have an attorney skilled in its complexities. This article gives just some reasons for such.

One reason a business needs a highly skilled Chapter 11 attorney is because its executive should get a confirmation from the lawyer that Chapter 11 is a good route to pursue. The executive needs to discuss business' debts, assets, and income with the lawyer in some detail. They will also discuss the executive's ideas about reorganizing the business to remain afloat. After getting this information, a Chapter 11 bankruptcy attorney can confirm that reorganization is reasonable or he can explain the reasons that it is not a good option. Going to a general practitioner for this advice would be akin to a person seeking a divorce through a criminal lawyer.

Another reason that consulting a skilled Chapter 11 attorney is important is that the businesses' debts have to be classified and it has to propose a plan of reorganization to cure its financial problems. Typically, the reorganization plan cannot exceed five years. To be accepted by the bankruptcy court, the reorganization plan must be approved by the creditors. Often, to obtain approval quite a bit of negotiation is required and it is best done by an attorney who has been through the process before and knows the intricacies of the law.

Equally important, though filing a Chapter 11 results in an automatic stay which protects the business' assets from creditor action, it is common for creditors to request that the bankruptcy court "lift the stay" and permit them to do such things as foreclose on property and otherwise seize assets. To ensure that you have the best advocate to counter these attacks, it is necessary to obtain an attorney with extensive experience in Chapter 11 bankruptcies.

Sometimes the bankruptcy court will appoint a U.S. Trustee to oversee the business' reorganization and to check whether the business is in compliance with the reorganization plan; a skilled lawyer will be needed to work with the trustee to ensure that his oversight is not disruptive to the business' interests. These are just a few of the reasons that an experienced Chapter 11 attorney should be retained.

View the Original article

In This Economy the Best Career Choice Is to Be a Bankruptcy Attorney

In today's economy, people are struggling to keep their jobs. It was recently reported that only 24.6% of all jobs in the United States today are actually good jobs. Working at Mickey D's or other fast food restaurants does not constitute a career choice by any means. The unemployment numbers were released in the beginning of August and with no surprise, are worse than the previous month at 8.3%. One thing the government is not telling us is the number of people that have fallen off the radar because their unemployment insurance has run out and they still are not working. Over 51% of Americans are now on government assistance. It seems that the number of Americans filing bankruptcy is soon going to take another rise. The number of Americans filing bankruptcy continued to rise to a high of close to 1.6 million back in 2010. Since then, the numbers have dropped a little or stayed flat. Many experts have been predicting that this might be the calm before the storm.

In this economy we should be instructing our children to go to law school to become a bankruptcy attorney. This is one of the only careers that thrives in a bad economy. Recently, many bankruptcy lawyers have diversified and started defending clients that were in foreclosure. When the foreclosure numbers started climbing back in 2010, attorneys noticed that the banks that were foreclosing warrant even doing diligence to prove to the court who actually was on title of the property. Because of the derivatives market, many loans that were taken out back in the boom time were sold and resold many times over. This happened due to the deregulation of the industry. Many banks could not even prove that they own the paper free and clear, angering the judges causing the bank to lose the property entirely. Now, a foreclosure takes approximately one year from beginning to end as banks are making sure that their I's are dotted in their T's are crossed. Real estate experts are predicting a continued decline in real estate prices nationwide and the economy continues to wallow.

With all this going on this makes it a prime time for young adults in law school to begin practicing as a bankruptcy attorney. This economy will not recover any time soon and over the next 10 years we will see many Americans filing bankruptcy. People having financial trouble should consider consulting a bankruptcy attorney to look at different options. For someone with a large amount of unsecured debt, filing Chapter 7 bankruptcy is King. If it's more about protecting one's property Chapter 13 bankruptcy is probably better. Americans that are buried under a mountain of debt shouldn't wait around until they hit rock bottom, but save any assets they have now by using a bankruptcy filing. Bankruptcy will break the bondage of debt and send the consumer on the road to becoming debt free.

View the Original article

Debt Relief Services for the Tax Defaulters

There are many individuals who are facing a tough time paying their bills and are failing to pay their taxes on time. It may be because they have suffered loss in business or have been ignoring to pay the taxes due to any other reason. Failure in tax payment is considered to be a serious offence, which has serious consequences. The defaulters might have to face tax lien, wherein, the government seizes their real estate property, retirement accounts, brokerage, and savings account. If the tax lien is filed, the individual's credit rating would be affected and he/she will not be able to buy or rent a house, rent an apartment or sign a lease. For such individuals, debt relief services from the specialised firms, is the only ray of hope.

Many companies or individuals file for bankruptcy and it is the only option for them that seems feasible. Now-a-days due to the poor economic scenario bankruptcy has become a common phenomenon. As per the federal laws bankruptcy is designed to help the individuals who are deep stuck in debt. Liquidation and reorganisation are the two different types of bankruptcy. The chapter 7 denotes liquidation bankruptcy while chapter 9, 11, 12 and 13 are for reorganisation. The process in a bit complex and to understand it completely, individuals must seek professional help from the bankruptcy lawyers.

The tax collection process is triggered by the Internal Revenue Services or IRS, sending three consecutive letters, if the first and second letter is not responded to. Later, the IRS authorities contact the defaulter on phone or they send their representatives to have a one on one conversation with the defaulter. The officer who contacts the defaulter is basically the revenue officer; he contacts the relatives, friends, business associates, employers, colleagues and co-workers of the concerned person and find out the ways of tax collection.

There are many companies who help defaulters in finding out the better ways of tax payment. These companies have specialised professionals who already have the experience of working with the IRS. Before offering their suggestions, the debt relief officers understand the defaulter's actual financial condition. By using the guidance and knowledge of these professionals, the defaulters can save their properties. The bankruptcy lawyers negotiate with the IRS agents as a result of which the defaulters sometimes get more time for payment or they are able to save their properties. Sometimes, if the tax lien is already imposed, the professional representation might help the defaulters in releasing the same.

Get consultation from our team of experienced attorneys, lawyers, CPA's and IRS enrolled agents for debt relief and bankruptcy lawyers.

View the Original article