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Many people are not aware of the pros and cons of filing bankruptcy for credit card debt relief. Though you legally eliminate your debt still it is considered to be a very drastic step. It is not a solution for every debt case and every finance expert will advise you to use it as your last resort. If you learn about what it does to your credit report and how difficult it will e for you to obtain finances in future you will never like to go for it.

You also need to avoid insolvency for as long as possible because once you file it then for several years you cannot declare yourself as bankrupt. There are many alternatives that you can try to avoid bankruptcy.
Liquidate your assets

Before declaring you as bankrupt the official receiving your application conducts your financial assessment. If it is found that you can repay the debts by selling your assets the court can give permission to the lender to sell your assets. So you can do it before your creditors conduct an auction.

You can sell your big house and move to a smaller one or you can sell one of your extra cars. There might be also some extra piece of furniture or valuable painting that could bring your some money. Selling the assets that you no longer use yourself will enable to you to get the right price for it which you can use for your debt elimination.

Work for Extra Hours

When you are in debt then you need to generate some extra income. This extra income will reduce some financial stress. You can find a second job or part time job. You can also ask your spouse to help you earn extra money to keep the finances in control till you eliminate your debt. Sharing your problem is very essential to avoid conflicts and stress on relationship.

Reorganize debts and find suitable debt relief program

It is very essential to reorganize or consolidate your debt amount to get a clear picture of the money you owe to your credit card company. If you have too many cards then you can transfer all your balances to single card with lower interest. In this way you can save some money that you pay as interest and other charges associated with the credit card services.

You also need to find out about the bankruptcy laws in your region. Knowing them and the consequences you would like to find out other feasible option like consolidation or debt settlement. You can avail of the free counseling that many bankruptcy lawyers provide their clients. If you know the laws then you can also threaten your credit card company to file bankruptcy.

Usually you will find the creditors reluctant for debt settlement. If you could threaten them, it will give you more leverage for reaching a favorable settlement amount during negotiations. Debt settlement is the best way of reducing your debt and getting debt relief in shortest time period.

Bankruptcy is certainly not your best way to deal with debts. Debt relief and debt settlement can certainly make a difference, and eliminate a strong percentage of your debt and in the meantime you will avoid the consequences of having to file for bankruptcy. Make sure you are always informed in regards to the best solution for you, and eliminate as much debt as you can. If you want to find more about this, check out the following link:

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If you are any EU citizen, in debt and in the UK, you will be pleased to learn that there is a solution for you. Under EU law it is possible for a citizen of any EU country to petition for their bankruptcy in any other EU state.

Here in the UK as a result of successive changes to our insolvency legislation to encourage risk taking, entrepreneurs and business expansion, we have some of the least draconian of the measures in the EU to deal with debt.

In England and Wales if you are made bankrupt or declare yourselves bankrupt, you will be likely to be bankrupt for only the standard maximum of 12 months. Indeed many bankruptcies are simple and contain no assets and so it is possible to be discharged in less than a year.

In other EU countries it can take many years to become bankrupt and similar amounts of time spent under bankruptcy restrictions or paying back certain amounts of the debt.

In England and Wales you will only be asked to pay back what you can afford out of your disposable income and only for 36 months. The vast majority of people never have to pay back anything.

In England and Wales the bankruptcy process can be completed in days or as opposed to months elsewhere in Europe.

It is important to clarify whether you qualify for bankruptcy in England and that you have enough debt wherever it is held.

You will need to show that you have been in the UK for 6 months and often if you have been here for less than twelve months checks will be made to ascertain that you truly have your centre of main interest here.

Try to show you have a bank account, that you have a National Insurance number, that you have a job and that you can speak the language commensurate with your employed position.

It is possible to engage someone to help you through the process and I would be happy to do that

For starters, bankruptcy is a legal method whilst agreement of debt is a mutually determined contract that the two events enter into. In circumstance of bankruptcy, you will have to entail the court, the attorneys, the legal professionals – the total party without having any exception. On the other hand, debts agreement can be, at least in concept, finished involving you and your lender. Needless to say, negotiating with an personal who has a apparent goal in thoughts and who is aware what he or she can offer and the what he or she can not offer will be a whole lot less complicated than heading to the court docket.

Secondly, bankruptcy is not necessarily more affordable than judgment. If you employ the companies of a bankruptcy attorney, the charges payable will certainly price you a whole lot. Second of all, you will have to spend for making use of the providers of the court docket as well. All this blended signifies that you do not necessarily get a less costly option when you go in for bankruptcy. Thirdly, possibility of acquiring genuine alleviation that you want is a great deal greater in situation of judgment. Each the creditors and the borrowers can use the threat of bankruptcy to make a huge variation. If the customer is insistent on excessive alleviation and is not ready to negotiate, the loan company can threaten to walk out of the deal and push the customer towards bankruptcy.

On the other hand, the customer as well can do the exact same if the loan company is becoming really inflexible. Each the celebrations have a far better opportunity of functioning effectively jointly with every other if they go in for this sort of a alternative. An additional purpose why financial debt deal is much better than bankruptcy is that it leaves you all your property in your hands. There is no require to liquidate all your difficult gain property just to pay back a tiny portion of the debts in total. As an alternative, you can retain your property and get excess time to pay back the credit history card use one more unsecured loans that you have in your hand.

As a final point, possibilities of repairing your credit score score brought on by the credit card debt judgment are increased if you make use of this selection. In case of bankruptcy, the destruction completed to your credit score rating can’t be eliminated for the following eight to ten many years. That is a extremely lengthy time and it is not sensible to carry any monetary choice for this kind of a extended time without having providing oneself the freedom to back again out of it anytime you want.

In the recent years, bankruptcy has become the only way out for many people suffering unbearable debts. According to the US law, a business, partnership, a corporation or an individual like you and me, can seek relief from debt under Chapter 7 of the bankruptcy law.

Last year on October 17, 2005, a new bankruptcy law was passed and a means test was introduced. It determines whether you are eligible or not to file under Chapter 7. The point behind the means test is to determine whether you have enough money left to pay back some of the money you owe to your creditors or not, after all your allowed living expenses are taken in to account.

It is calculated by subtracting an IRS allowed living expenses from your monthly income.

If your income after the calculation shows to be lower or equal to the median income of the state you live in, you will most probably be allowed to file under Chapter 7.

However, if your income happens to be larger then median income of the state you live in then your average income for the past six months will be taken in the consideration, or might be forced to file under Chapter 13 of the bankruptcy law.

Some of the expenses taken in the consideration are:

1. Utilities

2. Food

3. Clothing

4. Gas and transportation bills

5.Mortgage loan

6. Car loan

7. Child support

8. Taxes

If on the other hand after subtracting all of these expenses, you have at least $6000 left over to pay back to your creditors (the unsecured ones) in the next 5 years you will be forced to file for Chapter 13 instead.

Also under the 2005 bankruptcy law, you will need to file all your overdue tax returns if you want to apply for Chapter 7.

In case that during the 180 days of proceedings your application happens to be dismissed because of the willful failure on your side to comply with the court orders you will be denied filing for bankruptcy under Chapter 7.

Also in case that you as an debtor have dismissed the previous case of your own free will, after your creditors have required relief through the bankruptcy court, your petition will also be denied.

2005 bankruptcy law has brought along one more important change, as an individual you are now obliged to obtain credit counseling from a certified counselor before you can file for Chapter 7 bankruptcy.

The purpose of credit counseling is to educate you and help you reorganize your financial affairs. If you are serious about filing for Chapter 7, you have to provide the court with debt management plan you have developed during credit counseling, within 180 days prior to filing for bankruptcy.

If you are any EU citizen, in debt and in the UK, you will be pleased to learn that there is a solution for you. Under EU law it is possible for a citizen of any EU country to petition for their bankruptcy in any other EU state.

Here in the UK as a result of successive changes to our insolvency legislation to encourage risk taking, entrepreneurs and business expansion, we have some of the least draconian of the measures in the EU to deal with debt.

In England and Wales if you are made bankrupt or declare yourselves bankrupt, you will be likely to be bankrupt for only the standard maximum of 12 months. Indeed many bankruptcies are simple and contain no assets and so it is possible to be discharged in less than a year.

In other EU countries it can take many years to become bankrupt and similar amounts of time spent under bankruptcy restrictions or paying back certain amounts of the debt.

In England and Wales you will only be asked to pay back what you can afford out of your disposable income and only for 36 months. The vast majority of people never have to pay back anything.

In England and Wales the bankruptcy process can be completed in days or as opposed to months elsewhere in Europe.

It is important to clarify whether you qualify for bankruptcy in England and that you have enough debt wherever it is held.

You will need to show that you have been in the UK for 6 months and often if you have been here for less than twelve months checks will be made to ascertain that you truly have your centre of main interest here.

Try to show you have a bank account, that you have a National Insurance number, that you have a job and that you can speak the language commensurate with your employed position.

It is possible to engage someone to help you through the process and I would be happy to do that