Some of the matters that amount to bankruptcy fraud are:

Concealing valuables/ property/ anything of value that can be used to facilitate the payment of the outstanding dues
Knowingly concealing information about secret dealing and contracts that provide “on-the-side” (un-declared) income
Transferring/ buying property in the name of your spouse, just so it will not be absorbed into the bankruptcy listing as assets

Incoming search terms for the article:

• bankruptcy fraud

One of the most popular bankruptcy myths is that you can start with a clean credit slate. Nothing is further from truth. You will in fact, carry the stigma of being a risky investment for 10 long years once you have filed for bankruptcy.

Another popular bankruptcy myths is that all your debts will be discharged after the filing. Again, the truth is different. Certain debts such as alimony, child support and student loans do not come under the purview of the bankruptcy filing.

Another very dangerous bankruptcy myths is that if one’s spouse files for bankruptcy, the other will not be affected. Wrong – if there are joint accounts, it will affect the spouse.

Incoming search terms for the article:

• child support debit card
• ECRA bankruptcy

1. Live frugally. Hard measures in hard times. As soon as you realize that you cannot manage your debts any longer, you need to cut off all extraneous expenses and focus on a realistic repayment plan.

2. Dump your credit cards. Use only cash. By “dump” the credit cards, I meant that you stop using them; do NOT close the accounts! The total “credit limit” you have in your name is a good factor, which you should always strive increase.

3. Start saving. Saving will not only force you into financial discipline, but also provide you a cushion for future emergencies. Besides, creditors consider the saving aspect positively.

Learn proper financial management and you are automatically free from all other worries. Another fallacy is that good financial management means budgeting, saving, investing – in general spending wisely.  But there’s more to it that that. You also need to ensure that you are safe on and off the Internet in regard to identity theft.

Identity theft is today one of the most quoted reasons for poor credit, second only to credit card abuse. Learn what it takes to be safe when making financial transaction on and off line!

On the other hand, debt consolidation can teach some very valuable lessons.

1. You need to think ahead. Most people fall into the debt trap because they live for the present. They buy impulsively; they don’t save; they don’t pay their bills on time. Debt consolidation is a time when you are forced to sit down and chalk out the future of your finances.

2. Live within your means. There is no magic wand that will make your loans disappear; there will be no lottery that will suddenly give you all the cash you need to square up your debts. Debt consolidation will teach you that you should – and can – live within your means.

Incoming search terms for the article:

• credit card counseling debt consolidation

Scary picture, right? But don’t worry; you still have rights, and you are still protected by the law.

The Fair Debt Collection Practices Act is meant to protect you from the vindictiveness of such creditors.  They are required to report only the truth about the status of your credit, and are forbidden from using harassing and intimidating tactics.

Know your rights! Familiarize yourself with the FDCPA. And know also your rights, for best negotiations with creditors, as they often have the power to remove harmful remarks entered (by them) so that your credit score will improve. Insist on this in your negotiations – and get it in writing!

On the other hand, debt consolidation can teach some very valuable lessons.

1. You need to think ahead. Most people fall into the debt trap because they live for the present. They buy impulsively; they don’t save; they don’t pay their bills on time. Debt consolidation is a time when you are forced to sit down and chalk out the future of your finances.

2. Live within your means. There is no magic wand that will make your loans disappear; there will be no lottery that will suddenly give you all the cash you need to square up your debts. Debt consolidation will teach you that you should – and can – live within your means.

A credit consultant may set you back with his or her fees in the beginning, but you will gain much more in the long run. The consultant will be able to show you ways to prevent a forthcoming financial crisis, which will in turn save you money, effort (to repair your credit) and loss of your peace of mind.

Use a credit consultant as a tool to manage your finances wisely, and keep a high credit score!

Incoming search terms for the article:

• impact on credit using a credit consultant

  photo credit: TheTruthAbout…

 Opening a checking out is out of your reach

• You are unable to find approval for your car loan without a co-signatory
• Your phone rings incessantly and it is always about the payment of some bill (which is overdue)
• You are unable to find someone wiling to be your reference for any financial transaction
• You are unable to qualify for a regular credit card; the only one you can have is a secured credit card
• You pay the credit card bills of one card with another, and vice-versa
• You are seriously considering bankruptcy
• You are taking loans to pay for basic necessities
• Your monthly paycheck does not last beyond the first week
• Most of your groceries come from coupons 

Take Action Now

 Look carefully and truthfully take a tour. If you recognize yourself in this scenario, it is time to take some serious action:

 Get in touch with a reputed credit repair company – your credit score should be watched over with eagle’s eyes. Every entry is important and the sooner negative remarks are contested the better for you. Retain a reputed company, which are affiliated to ethical bureaus such BBB and ECRA (Ethical Credit Repair Alliance). This will assure you of superior quality services at prices that leave you satisfied. 

 Consider debt consolidation – credit repair and debt consolidation are separate action plans, true. However, they can complement each other easily so you can get the best out of it. Debt consolidation, though initially pulls you down, if you maintain the regime it would soon show you as a winner. That coupled with credit repair concise and precise action can improve your credit score immensely.

Avail counseling – you would not think that counseling is really something you should concentrate upon when you want a better credit score. You will be surprised to know that counseling can be immensely beneficial because: (i) it teaches you how to arrest extraneous expenses, (ii) use your money optimally, and (iii) avoid debt traps. 

Awareness coupled with right action would be the best medicine when you find yourself in any type of financial crisis. Educate yourself on both its causes as well as the best remedies for it.

Incoming search terms for the article:

• What action can you take to maintain or repair your credit?