Credit Repair Companies and the ECRA

When you are threatened by bankruptcy, do not despair. Before you throw in the towel, list all the bankruptcy solutions you have in hand and  draw up a careful comparison chart for reference. There are excellent protective laws under Chapters 7, 10 and 13, each covering different aspects of financial distress.

The best way to go about it is to find a reputable bankruptcy law firm, or experienced credit repair agency that can guide you in choosing the best from among the available bankruptcy solutions. Make the extra effort in identifying a reputable professional agency that can offer you the required guidance.  The survival of your business and your future depend upon the path you take when you are threatened with bankruptcy.

These Chapters of the  are meant to allow you grace time that varies from 3 to 5 years. Such bankruptcy solutions can save you from more than 10 years of heartache.

So just what is Chapter 10 bankruptcy? This is a tiny clause in the Bankruptcy Act that can protect you from harassment and buy you time when you most need it. According to the US Bankruptcy Code, this chapter will permit a small company to avail of the court’s protection until they can work out a plan to extricate themselves from their financial impasse.

Chapter 10 bankruptcy is designed to aide small and micro entrepreneurs, who would otherwise lose their business to their creditors. Under this clause, the company will ask for a reasonable time during which they will draw up a realistic time and action plan to rebuild their financial base. If the Court find it acceptable, then the company will be offered protection under the Chapter 10 bankruptcy Act.

The main conditions imposed by Chapter 10 bankruptcy Act is that the company’s rejuvenating plans should not exceed three years or the total debt be more than US$2,500,000.00

There is too much argument in regard to the credit repair business to disregard it. The fact is, the reason that so many of those who need credit help fails to seek it, is the shady reputation this industry has gathered in the recent past. However, it would be unfair to say that all those who repair credit are dishonest.

You will also find professionals of high repute who will do their very best to restore your credit to “good health.” But that leaves one with the problem of how to go about finding which companies are reputable and how to stay safe from the traps the fraudulent credit repair business agents lay for you. Contrary to common belief, picking out a deceptive credit agency isn’t so complicated. The first warning sign is when the business you are looking into purports to repair your credit “quickly.”

Because your credit history was formed over the span of many years, it’s just not possible to improve your credit score overnight. If you hear a credit repair business tells you they can perform what you know is not possible, you need to back off, because they are definitely fraudulent!

In addition there are other warning signs you should look out for as well. The deceitful “professionals”, in most cases, will require full payment upfront.

A credit repair organization, under federal law, may not charge their entire fees up front. No matter how bad your credit report is, do not pay in advance of any services being rendered.

A less-than-reputable credit repair business is more than willing to use illegal methods. They will even advise that you use illegal means and talk you into thinking it’s OK to do so, since they have somebody on the “inside” in the credit bureaus who can cover up for them and you.

Make sure you don’t fall for these kinds of lies! Do not accept any tactics in order to improve your credit unless it’s 100 percent legal. No matter how bad your credit problems, they’ll be made so much worse if you’re caught trying to amend the situation illegally. You are primarily responsible when your credit report is repaired through illegal means; therefore, you can be prosecuted if caught breaking the law. Everything considered, it just isn’t worth risking it!

Another simple way to establish whether the credit repair business you’re considering is reputable, is to ask that they help you understand more about repairing credit. A reputable agency will be happy to give you guidance and advice (and possibly some “hand holding”) in your quest to learn more about how to repair credit. A trustworthy business will work as a facilitator, while a fraudulent company will be resentful and wary about sharing information in regard to repairing your credit.

One of the greatest and most harmful among the identity theft series is the social security identity theft. This enable the thief to impersonate you and avail for employment benefits, medical insurance, bank mortgage and other loans and many other such things that will leave you in a very precarious position with the law.

It’s very difficult if not impossible to identify and backtrack which tasks have been done by you, and which ones by the thief, for which legally, you remain responsible for everything that your impersonator does.

Beware – do not carry your SSN number in you handbag or wallet. Do not give this number or any other personal information over phone or email to anyone. In case any bank or other such authority asks this of you, reply that you will do it in person. You CAN prevent social security identity theft – and prevention is the only way you will remain safe.

Of course, you can get loans while in bankruptcy. The only drawback is that the terms and conditions will be crippling! However, there’s a way around this problem.

Find a person who will be willing to lend his good name (his or her credit score should be high and his credit report impeccable) as a co-signee to your loan.  His assurance to the bank or financial institutions will indicate that he will make good on the loan in case you fail to do so.

Beware that default payment involves far more than repayment in such cases. The credit score and report of your co-signee will reflect such failures, and his score will be degraded. Be very careful about the repayment schedule of such loans, as this will reflect your friend or relative in a bad light and damage his or her credit standing.

When you are on the brink of losing everything and you desperately want a professional opinion where should you go? You have two choices – first, you can go to any leading attorney or legal agency for advice; second, you can go to a reputable and effective credit repair agency or agent.

These are the two places where you will find sound advice about whether or not to file bankruptcy; and if yes, how to do it in a manner that  harms you the least.

But the most vital bankruptcy advice would be to reconsider it again and again, until you have exhausted ALL your possibilities. This should be indeed your parachute – a last resort. It’s worthwhile to avoid declaring bankruptcy if you have any other alternative, because once it finds its place onto your credit report, the repercussions are very discouraging. You will have to bear the stamp of high-risk investment for 10 years … which is a very long time.

Everyone needs to fight identity theft by whatever means they can. Unfortunately most people become so upset and depressed when they are victimized that they shut down completely.

Do not hide such incidents! Come online and narrate your stories. Complain to the authorities concerned. Go to the local police, find the relevant cyber police websites and report your incident. For every reported incident hundreds if not thousands will become aware of new dangers.

It’s the duty of every citizen in the world to fight identity theft as this is becoming one of the most encountered and damaging of virtual crimes. You will be surprised to learn that now you will be able to find courses that teach how to hack sites and other related software programming.

This has become a lucrative business that asks for little investment and offers great returns. Unite and fight identity theft – this is the only way we can stay protected.

It doesn’t look like it, when you go through such a difficult phase in your life, but it’s true that there ARE advantages to bankruptcy. It looks like the whole world has collapsed on your head and you are lost forever. However, if you look carefully there is indeed a silver lining there.

One of the most important benefit is that it takes the financial pressure off your shoulders. When you make the decision, the relief is almost palpable. Bankruptcy also teaches you a very valuable – not to mention expensive – lesson about finances. It tells you that you are responsible for the consequences of your actions. Nothing can drive this point home better than your bankruptcy status. Many people turn a over new leaf after such an episode, and start valuing the importance of proper financial management.

Lastly, one of the best advantages of bankruptcy is that you can start from the beginning; with a clean slate!

What is the cost of identity theft? Many people wake up one day to find that they are victims of identity theft. Since this has become a very lucrative business, it’s very likely that the number of such people will increase in the near future.

You must take some measure to prevent it. The cost of identity theft is much more than the money siphoned!

It costs you your financial reputation, as your credit score will dip for non-payment of bills for loans that you never knew you had. It costs you your health due to the stress of worrying about how to improve your credit score, and how to pay back the siphoned amounts for which you are responsible unless you can prove 100% that you are a victim of identity fraud – which is often very difficult.

The cost of identity theft also involves your peace of mind. Once bitten, twice shy – you will be scared to work on the Internet for fear of becoming a victim yet again.

We all know that identity theft has become one of the biggest menaces on and off the Internet. Are you doing anything about it? Unless you have some identity theft guard in place, you too are likely to be a victim at some time or other.

There will come a day when, like the installation of anti virus software, you will have something that guards you and your computer from identity theft. Until then, you should use your common sense and stay alert. Your best identity guard theft is your own alertness!

Most identity thefts occur when the hackers send you a link that opens a cloned website that looks identical to that of your bank or email id provider, and asks you to fill in personal information for verification/ upgrading/ re-registration and so on. You need to make it a rule to NEVER give any personal information, especially passwords or ATM / debit or credit card numbers to anyone over the Internet or the telephone. While shopping online, ensure that the site is encrypted and marked so by Verisign – there will be a tiny yellow lock in the lower right hand corner of the page.