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On Credit Card Debt and Bankruptcy: How Does it Work?

how to file for bankruptcy

As you find yourself drowning in a helpless pile of debts, the option to declare for bankruptcy comes close to mind. In fact, each year, about half of a million Americans declare bankruptcy. Unfortunate as it may sound, this is now how the modern world works.

Credit Card and Bankruptcy

As expected, one of the greatest reasons for bankruptcy declarations are debts concerning credit cards. With the pressure coming from debt collectors for credit card debts, many debtors are forced to declare themselves bankrupt as this might just be the easiest way to eliminate credit card debts.

Like most forms of debts, credit card debts can easily be eliminated by bankruptcy. However, when you do declare yourself bankrupt, it is a holistic approach. You cannot just file for bankruptcy for your credit card debts, all other debts from all other sources are required to be disclosed as well.

Still, there are several important things you need to know before filing for bankruptcy. These are the following:

Things to Know

  • You need a list for every debt you owe any creditor.

When it comes to filing for bankruptcy, you cannot leave other debts out of it. All debts you have to any creditor must be disclosed; this is a legal requirement. And so, it’s not possible to file for bankruptcy with regards only to your credit card; it must include all other debts and creditors. Yes, even including the debt you incurred from your dentist months ago.

tips in improving credit score

  • Not all debts can be discharged by bankruptcy.

Unfortunately, not all debts can be discharged by bankruptcy. Debts like alimony, student loans, child support and taxes are some of the debts that can’t be eliminated. Furthermore, only unsecured debts can be discharged by bankruptcy. Secured credit card debts will allow creditors to take away whatever items you have purchased for nonpayment.

  • A nondischargeability can be filed against you.

A fraudulent activity can be a source of nondischargeability and you can even be put to jail for it. If you used your credit card for luxury right after you discussed filing for bankruptcy with a lawyer; the court will view this as a sign of fraud. With that said, your debts will not be discharged.

  • Your credit score will be affected by your bankruptcy.

With bankruptcy on your credit report, your credit scores will definitely sink. Those with credit scores that are around 700 will definitely lose around 200 points. This will then have a great impact in your accessibility to credit. It’s possible for you to not be eligible for some loans and credit cards or if you are, you might face sky-high interest rates and fees.

  • You can remove bankruptcy from your credit report sooner.

As opposed to the idea that it will take 7 to 10 years before your name and credit part will be cleared for bankruptcy; there is actually a way to make this happen sooner. With the help of credit repair companies, disputing negative aspects of your credit reports will be made easier.  To know more about this, check out http://aaacreditguide.com/bankruptcy-on-your-credit-report/.

The Best Alternative for Xmas Lights This Year

xmas lighting

If you’re like most people – you’ll know that Xmas season is one of the most magic and best times to bring everyone together. Nothing smells, feels and marks the coming of Christmas time like decorating your house, tree, yard or maybe even your dog.

Xmas lighting has become a staple of the holiday tradition for the last fifty years ever since manufacturing allowed for the production of cheap christmas lights and accessories. Since that time things have really progressed, most families have multiple Xmas lights setup in their house. Most of them are a gigantic mess of lights, wires, and bulbs all through in an old box in the garage just waiting to be used the next year.

Technology has progressed in leaps and bounds within the last thirty years and there are much better options currently available for Christmas lighting.  We discussed a couple of those options in this post, specifically better Xmas lighting alternatives.

Laser Christmas Lights

One of the best alternatives this year is to use laser based Christmas lighting to get the heads up on your neighbors.

This is for a couple of reasons:

  1. Easier to install
  2. Safer
  3. Easy to take down
  4. Cheaper

The last part is a great feature, there are even cheaper models like snowflake projector systems that are even cheaper than the competition.  To setup this kind of lighting system we recommend a distance of five to ten feet and it’s best to shine them against a tree, wall or garage and avoid shining it into your eyes.