Bankruptcy Basics

According to the American Bankruptcy Institute "household debt is at a record high relative to disposable income." The Administrative Office of the U.S. Courts reported that the number of filings for the year ended March 31, 2003 "exceeded 1.6 million for the first time in any 12 month period," a 15.1 percent increase from the previous year.

There are two basic types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 Bankruptcy and Chapter 13 are legal proceedings that are available to a person to cope with a financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay about $160.00 in court fees. Attorney fees are additional.

Chapter 7 bankruptcy involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. Exempt property may include automobiles, some household furnishings, and property needed for work-related use; for example if you were a mechanic the tools you use to perform your work would be exempt from the bankruptcy settlement. Exemption amounts vary from state to state.

Under this plan the court appoints a trustee to handle the liquidation of your non-exempt property. The trustee can sell or turn over your property to your creditors. The court discharges your debts and you are now debt-free. You are allowed by law to file a Chapter 7 bankruptcy once every six years.

A Chapter 13 bankruptcy allows you to keep property, like a mortgaged house (provided there are no liens on it) or a car, as long as you have a steady income. A Chapter 13 bankruptcy is a court-ordered and approved repayment plan to your creditors. This plan allows you to use your future income to pay back your debts over a 3-to-5 year period without surrendering any property. Once you complete payments under the plan, your debts are discharged by the court.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs, and debt collection activities. Both provide exemptions that allow people to keep certain assets, although exemption amounts vary. A bankruptcy will not erase most child support, alimony, fines, taxes and some types of student loans.

Financial experts agree that a bankruptcy should always be the last resort used for managing your debts. Bankruptcy has long lasting results. A bankruptcy remains on your credit report for a period of 10 years, making it more difficult to obtain credit in the future. You should also know that although your bankruptcy disappears from your credit report after 10 years, you may still be asked by future employers or lenders if you have "ever" filed for bankruptcy.

Disclaimer: The information contained in this article is for informational purposes only. The author is not herein engaged in rendering legal, insolvency, tax, or other professional advice and services.

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How do you actually pay raise!

Were you lucky enough to get a pay raise lately? If so, what are you planning to do? Here are 4 tips on how to increase your pay real dividends for you now and in the future:

1) Open a savings account -

Baby Boomers can probably remember parents or grandparents to make regular deposits to a savings account at the local bank. Our savings rate is a measly 2.5% "significant decrease of 7% on average 30 years ago.

For example: If you have recorded a $ 80.00/month raise at the end of the year you have $ 960.00. This is not a huge amount to some, but this is just the beginning. And thanks to the wonders of compound interest, you can watch it grow in a nice nest egg over time, especially if you continue to add new raises your savings.

Savings account interest rates are rising. The online bank, ING Direct currently offers 2.35% APY (annual percentage yield), with no minimum deposit, no fees, and your account is FDIC insured. Visit www.ingdirect.com to learn more about their plans for savings account.

2) Pay down debt credit card

The average American carries $ 2,627 in debt from credit cards, an increase of 14.5% from a year ago, according to Myvesta, a nonprofit consumer education in Rockville, Md.

Fifty-three per cent of credit card companies, just 2% minimum monthly payment, an increase from 43% of companies in 2003, according to the advocacy group Consumer Action Consumer.

Paying 2% less each month due to a balance of $ 2,600.00 at 18.0% interest, should you OVER 35 YEARS to pay, not to mention the $ 6.730 .00 spent on interest costs! Instead, add your $ 80.00 per month to raise the minimum monthly payment will be refunded in 2 years and pay a little over $ 500.00 in interest charges, a huge difference!

Applying your rise toward your credit card debt will lower your debt to income, improve your credit score, and help you get out of the nasty web of debt outrageous credit card.

3) Open or contribute to an individual retirement account (IRA) -

If you have not begun to contribute to a retirement account, you should, and what better time to start your new raise? That's exactly what I did three years ago, but I wish I would have started earlier.

If you rely on Social Security to take care of yourself in your retirement years, it would be better to make the rethink. Few changes to the social security system, we tend to overestimate how much we are going to receive benefits and underestimated how long we live. The only way to bridge this gap is to have income from your own retirement plan to benefit in your "golden age".

An added benefit of opening an IRA is that many companies will match personal contributions to a specified rate. Check with your human resources department to see what plans are available and if your employer will match your contribution.

4) Invest in Stocks, Bonds and Mutual Funds

You do not need thousands of dollars or a diploma of business in order to invest. Neither do you have to hire a broker or financial advisor to own stocks, bonds, mutual funds.

In fact, a company called ShareBuilder is making it easy for those who can afford to make regular automatic investment "to build wealth through long-term investments. 'Www.sharebuilder.com visit to learn more about their simple and affordable, flexible and plans Depending on your budget.

5) BONUS TIP -

Another option, and one that too many of us to choose, is to do nothing other than spending our annual raises. Unless you have had some unforeseen emergency or living paycheck to paycheck, is there any reason to think that you can not get this year on the same salary as last year?

The Federal Reserve estimates that more than 40% of American families spend more than they earn and that no less than 25% of households are not enough savings for the future

Your raise is a unique opportunity for you to invest in the welfare of your finances with the results that we can continue to 'pay' you now and in the future.

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How To Save At The Gas Pump

With some analysts predicting gas prices to peak at more than $ 2.50 per gallon or more, those of us on a budget will have to find ways to meet the increase fuel costs or reduced our consumption of gasoline.

Five weeks ago, I was able to pay $ 1.77 per gallon at a local station; The price had risen to $ 2.19 per gallon and climbing. So now when I fill up my 13 gallons tank of gas I pay $ 5.46 more. Filling up twice a week, or about 10 times a month on average, will cost me $ 54.60 more each month.

Fortunately, I have some wiggle room in my personal budget to meet this increase. For those who do not have this flexibility, here are some tips to help you survive at the cost of pumping awaiting you at your neighborhood gas station:

Maintain your vehicle

Keep your tires properly inflated, your engine tuned and regularly checking your oil are some small ways to help you save on fuel consumption and costs. Insufficiently inflated or inflated tires can cause mishandling. You will also have to replace your tires more often. A well-tuned engine, with regular oil changes, will help your vehicle is working properly and more efficiently, using less fuel.

Combine small frequent travel

Instead of making several short trips for shopping, doctor's visits, and other races, to combine the short trips in a larger journey. Plan your itinerary so that you can go from point A to point C, without having to obtain the right track to return to point B, without wasting time and fuel.

Carpooling and use other modes of transport

Two or more can travel cheaper if they pool their resources. At turns with neighbors on travel to the grocery store and for other races, including activities with children. Hop on a bicycle or on foot, if you are in a sort of a mile or your destination. You cut down on fuel use and exercise!

Watch your driving habits

Watch those jackrabbit starts and not the foot. Driving at a moderate speed, you use more fuel per mile when you drive faster than 55 mph. Limit your use of air conditioning when you are out on the road.

Online search for the lowest prices

Find the lowest possible price in your area can help reduce your fuel bill, especially if you fill up often, but will not fool any way to save a few cents. Search sites such as www.gasbuddy.com www.gaspricewatch.com and learn about the rates in your area of origin as well as in the areas of work or travel.

Use premium only if necessary

Prime fuel octane is generally only required for luxury vehicles and sports cars. You can save up to 20 cents a gallon or more by using a low octane gas. Putting premium gasoline in a car that does not need to do no harm to the engine, just your wallet.

Do not Believe The Hype!

It will not be long before you see commercials and ads for "miracle" fuel booster and other flimflam promising to help you save fuel and money. Remember, miracles are from God. Avoid hawkers and their hype and save money you want to spend in value of the products that you are going to need it for the gas prices higher anyway!

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