Avoid Personal Bankruptcy

Sometimes, despite our best efforts to tackle our debts, bankruptcy is the only solution. This is particularly the case when unsecured debts are insurmountable and there is no realistic way to repay them within any reasonable amount of time.

Unfortunately, many banks don’t want bankrupts as customers. People still going through the process of bankruptcy (‘undischarged’ bankrupts) may find it even more challenging to find a bank account. This is because many banks will look at your credit history when you apply.

Not having a bank account can cause all sorts of problems. It’s difficult to keep your money somewhere safe. You cannot make Direct Debit payments – which is not only inconvenient for paying bills and other expenses, but your utilities could actually work out more expensive, as many utility providers offer discounts to Direct Debit customers.

However, it is still possible to open a bankruptcy bank account if you have a history of bankruptcy and even if you are an undischarged bankrupt. If you’re in that situation, look for a bankruptcy bank account that doesn’t have a credit check, so your credit score won’t matter.

The benefits of a bankruptcy bank account

When you have a bankruptcy bank account you can make Direct Debit payments for bills and expenses, which is more convenient. Read more…

Have you seen all these attractive credit card offers with 0 APR and low interest? Getting a balance transfer card is very useful, when you have high interest rates on you cards. What you need to pay attention getting one of such credit cards with low rates is never use it for purposes other than your balance transfers. You should never get cash advances or buy an item using the cards as this may result in sky-rocketing interest rates. This card is willfully made for balance transfers and consolidation of credit card debts only.

If you plan to make big purchases like you have your eye on the HD Blue Ray DVD Player or the HD Projector for a very long time, but have almost maxed out your card, you can use the credit card with fixed interest rate. Read more…

Credit consolidation is one of the easiest and best ways to get out of credit card debt. That is why it is widely used today. Debt consolidation is not just about transferring accumulated debts from multiple creditors in one creditor. So if you are tired of paying for your minimum due amount and wants to become debt free sooner then you need to start your to act now. Otherwise your credit card debt will continue to accumulate, even if you stop using your credit card. The interest rate, penalties and other charges can easily increase your debt amount over time. That is why you need to take help of debt consolidating agencies.

Banks can charge you with unimaginable interest rates and you cannot do something about unless you have the money to pay them in full. If this is not the case, then your next best resort is to consolidate your debt to stop the bank from charging you with more penalties and other unnecessary charges. Now here are some of the advantages of consolidating your debts.

Pros of consolidating your debt:

Avoid filing for bankruptcy

Once you’ve managed to properly consolidate your debts, you no longer have to file for bankruptcy. B Read more…

In an August 19, 2011 opinion, Judge Paul Crotty of the United States District Court for the Southern District of New York affirmed a September 2010 bankruptcy court ruling in the Delphi Corporation (n/k/a DPH Holdings Corp.) chapter 11 cases which denied a request by Appellant Michigan Funds Administration (or MFA) to amend an administrative expense claim and disallowed and expunged the underlying claim. The district court opinion is embedded below.

More details on the bankruptcy court and district court orders after the jump.

In the bankruptcy court order, entered by Bankruptcy Judge Robert Drain (Bankr. S.D.N.Y.), the bankruptcy court considered whether an untimely administrative claim filed by the MFA for 2009 yearly assessments could be considered an amendment of the MFA’s timely administrative claim for 2008 assessments. Judge Drain, relying on the two-part test outlined by the Second Circuit in Midland Cogeneration Venture L.P. v. Enron Corp. (In re Enron Corp.), 419 F.3d 115 (2d Cir. 2005), found that “the [2009 Claim] would not properly relate back to the [2008 Claim]. T Read more…