Many people get into financial trouble because they fail to make the distinction between a want and a need.  Bankruptcy is a valuable tool for getting your financial health back in order.    If you are successfully discharged from a bankruptcy, remember the choices and events that lead to your bankruptcy… so that you don’t relapse financially.  Just because credit card companies are advertising that “consumers are ready spend,” doesn’t mean that you should.  Medical expenses and credit card debt are two of the main debt obligations that lead to financial distress.  Many times you can’t control medical expenses, but you do have more options when it comes to controlling your credit card.

If you are already struggling with debt, the general message of using your cards wisely is even more important.  As the economy struggles to rebound, many people are having the same trouble rebounding from their high credit card bills.  Depending on the types of debt obligations you have, you can work out effective repayment or discharge plans through bankruptcy.  A bankruptcy attorney can review the different options with you to see which type of bankruptcy best fits your situation.   Instead of racking up more debt this holiday season, considering giving yourself the gift of relief by getting your debt under control.

The article said of Dubai’s recent fall, “That renaissance has now ground to a virtual standstill, thanks to the same negative economic circumstances that have dragged down just about every other economy.  Foreigners are no longer swept up by the glitzy promise of Dubai.  An estimated 1,500 visas are being canceled each day in the city, and the total population is expected to decline by 8% this year by some estimates.”

As a reason for the population decline, the article went on to say, “Weakness in Dubai’s financial sector led to thousands of layoffs, which led to thousands of mortgage and loan defaults.  However, unlike the United States, defaulting in the Emirates is a crime, almost always leading to prison time.  It’s no wonder, then, that the suddenly unemployed tend to flee the country.  According to numerous published reports, approximately 3,000 cars that once belonged to foreign residents are now sitting abandoned at Dubai’s airport gathering dust, the Pompeii-like remnants of lives interrupted.”

Anyway, it is interesting how different things can be in other countries.  Hearing the stories of these unfortunate people losing their jobs can truly make you feel lucky.  In the United States there are long standing laws that give debtors and the unfortunate second chances.  It is proven that giving people second chances with their finances benefits everyone the most in the end.

If you are struggling financially, be thankful that you live in the United States, and then use the tools that are provided to you to get your second chance.  There is no better person to help you than a bankruptcy attorney, so contact one today.  You will be able to setup favorable repayment plans, or you can have debts completely wiped out.

One example is Cork and Olive, a small wine retail franchise chain located in Florida.  Owners of franchises had begun noticing issues with the parent company like not receiving requested inventory.  Eventually the parent company filed for bankruptcy.  At first the process was challenging because of public perceptions about bankruptcy and a slew of unanswered questions.    CNNMoney.com recommends that if you perceive that your franchisor is going towards liquidation then attempt to acquire the rights to the mark.  Richard Carlton, one of the owners of the Cork and Olive franchise, states that his store has actually become more profitable since the franchisor’s filing for bankruptcy.  He is able to make more decisions and implement changes with less franchisor oversight.  An added perk is that he no longer has to pay the monthly franchise fee.

Small businesses are feeling some of the tightest squeezing by this economy.  Companies, like CIT Group, that have historically helped small businesses are being forced to pull in the reigns on credit they previously allotted to small businesses.  When your franchisor files for bankruptcy, you don’t necessarily have to follow.  Regardless, your franchisor’s filing will have some type of affect on how you continue to operate.  Before you simply close up shop, get more information about your options and how restructuring debt can help you and your business.  Your financial situation may be such that it is better in the long run for you to also consider bankruptcy and restructuring.  More and more businesses, like Six Flags and Mrs. Fields, are using bankruptcy as a tool to emerge strong and more competitive to survive in this economy.  Deciding whether to file, is an important decision.  Contact a qualified bankruptcy attorney to explore all your options.  Bankruptcy doesn’t have to be rock bottom.  It can be a new beginning.

According the Wall Street Journal, more people are taking on multiple part-time jobs and gigs to make up their lost wages.  Ken Hall, for example, took on several part-time positions and bartending on the side.  Handling one job can be stressful, but some are actually enjoying a new lifestyle that is absent the usual office politics.  Regardless, makings ends meat on your own is stressful and scary.  Despite their best efforts, some are still having difficulty making the mortgage and paying all the credit cards on time.  To cope, many are tapping every possible cash asset and savings source to make the minimum payments.  When you’re financially stressed and you feel you’re down to your last options, it is extremely tempting to take a slash and burn approach to debt resolution:  sell everything of value and deplete every other source of cash.  Essentially, do anything but file bankruptcy.

One of the worst pre-filing mistakes is not talking to a bankruptcy attorney.  If you have a large debt burden, talk to a qualified bankruptcy attorney who can explain the advantages and disadvantages of different debt management techniques.  They can help you head off problems before they backfire. Another major pre-filing mistake is liquidating the tools of your trade, especially in this economy.  Liquidation might make sense at first blush—pay everything off and then starting over.  But the question then becomes, what do you start over with.  With the slow rebound in the job market, you may be your best opportunity for employment.  If you liquidate your tools, you won’t have the items you need to make money.  Also, make sure that your bankruptcy attorney knows your profession and the tools that you need for that profession.  Your bankruptcy attorney can then work with you through the bankruptcy process to resolve your debt issues, improve your cash flow, and help you keep your trade tools.  Tools of the trade are protected during the bankruptcy process.  What is considered a “tool of the trade” depends on your occupation.  For example, a transcriptionist needs word processing equipment.  Mechanics need shop tools.  A promoter might need power point equipment.  Don’t be stuck in the mind set that “tools of the trade” only apply to certain occupations.  Protecting one of your last avenues of livelihood is an extremely important goal during the bankruptcy process, so don’t neglect identifying what items you need towards your occupation.

This is a rough economy.  Some analysts are dreading and predicting double digit unemployment by next year.  Fortunately, there are still options and opportunities available for you get back on your feet.  Contact a bankruptcy attorney in your area today to learn which type of bankruptcy is best for your financial situation.

In addition to developing a basic savings plan to pay for retirement, a second major component to your retirement planning needs to be reduction of debt obligations so that you can eventually afford to retire.  If you have high debt balances from credit card debts or medical expenses, talk to a bankruptcy attorney before making drastic financial changes in your debt strategy.  Many people are tempted to pay off their credit card debts by tapping into their retirement funds.  Some people are even tempted to do the quit and get re-hired trick…. This is where they resign from their job, use the qualifying event to pull out all of their retirement savings from a 401K, and then get re-hired by the same employer, but with a loss of seniority and possibly benefits.  Using your retirement proceeds to pay debts is an unnecessary risk of your current benefits and future retirement.  Depending on where you are at in your retirement planning, you may not be able to recoup the savings that you accumulated through your retirement plan and the accompanying, accrued interest. Bankruptcy is a better option when you need to protect your future retirement and control current debt obligations.

Bankruptcy also helps keep aggressive creditors in check.  Do not be pressured by a collector that is harassing you and threatening to “garnish” your retirement funds.  Funds in 401K and similar retirement accounts are protected in bankruptcy.  This means that creditors cannot access these funds, unless you authorize them to do so.    Talk to a bankruptcy attorney first.  They can help you develop a bankruptcy plan where you can resolve your debt issues without sacrificing your retirement funds.

Consumer and banking lobby groups have been fighting to get this bankruptcy law modified for years.  Even now, when banks are more vulnerable than at any time in recent memory, efforts to include a provision in the financial market rescue plan that would have required banks to write down mortgage terms under certain conditions failed miserably.  “[Legislators] clearly decided this is not a priority,” at this time, says Ruth Susswein, deputy director of national priority at Consumer Action.  ”But we will continue to push for it, because it is the only plan that actually doesn’t cost the taxpayers anything.”  Lobbyists for the banking industry counter that consumers will simply have to pay higher interest rates charged to offset the cost of writing down bad loans, which means there would be little to no true savings for consumers.

But since today’s housing market has reached crisis point, Congress must promote additional options for the 400,000 homeowners at risk of foreclosure.  As of Oct. 1, 2008, homeowners unable to make payments and who meet the criteria set out by the Federal Housing Authority (FHA), can ask their bank to write down the value of their mortgage to at least 90% of the home’s market value and lower the interest rates on the mortgage.  In exchange, the banks get the security of FHA backing, which means the government guarantees payment should the homeowner default.

Consumer groups claim the measure won’t make much of a dent in the coming avalanche of foreclosures.  Bankruptcies are expected to continue rising, with more and more people losing their homes to lenders.  Banks foreclosed on 1.2 million homes during the first half of 2008, and this number is expected to rise even higher than the total 2007 figure of 1.5 million homes, due in no small part to the rising unemployment level.

“Soon we will discover that the bailout will do nothing to stop foreclosures,” says Henry Summer, president of the National Association of Consumer Bankruptcy Attorneys. “Changing bankruptcy law is the only way to do that.”

Congress may even tackle the 2005 bankruptcy law, addressing consumer complaints that the process is now, on average, 50% more expensive than it used to be.  Reform advocates point out that the law creates unnecessary paperwork and forces people about to file for bankruptcy into pointless credit counseling sessions that often do little more than postpone the inevitable. “Certainly there are a lot of parts of that law that are not doing good for anyone,” says Summer. “It was supposed to ferret out abuses, but it hasn’t.”

Consumers facing home foreclosure are not without hope.  An experienced bankruptcy attorney may well be able to guide them through declaring bankruptcy and keeping their beloved homes in the process.  Despairing homeowners should reach for the life preserver just within their reach–foreclosure does not have to be a foregone conclusion.

An article posted at examiner.com states that “[m]ost Americans who filed for personal bankruptcy due to health care costs were middle-class, homeowners who had gone to college” and that, of those, “75% reported having health insurance.”  Interestingly, these figures are contrary to previous studies looking at the causes of bankruptcy filings.  According to the Journal study, those studies failed to take into account bankruptcies that were due in major part to medical costs because of the way they were designed.

“Older studies on bankruptcy,” the article says, “were problematic because they were based solely on court records. Even though they showed that rates of medical bankruptcy were substantial, these court-based studies often understated medical bankruptcies. Why? Many medical debts were not recognizable on court records…Many medical debts were disguised as credit card debt or mortgages. Most medical debtors charged health care they couldn’t afford to credit cards or they mortgaged their homes to pay for medical bills. In addition, debts due to hospitalization or doctor visits–which were turned over to collection agencies–were not usually recognizable on court records.”

The researches in the Journal study decided to take a different approach: “They obtained 118,308 bankruptcy petitions filed in the United States between January 25, 2007 and April 11, 2007. A random national sample of 2,314 bankruptcy filers were surveyed and interviewed; their court records were also abstracted.”

Here is a bullet list relating some of the Journal findings:

* The highest out-of-pocket health care costs were associated with non-stroke neurological illnesses, such as multiple sclerosis, followed by diabetes, injuries, stroke, mental illnesses and heart disease.

* For 48% of medical debtors, hospital bills were the largest single out-of-pocket expense. Prescription drugs for 18.6%, doctors’ bills for 15.1% and insurance premiums for 4.1% of other debtors were the largest expense. Medical equipment and nursing homes where the largest expense for the remainder of medical debtors.

* Illness-associated loss of income also contributed to financial problems related to medical bills. In 37.9% of medical debtors, the illness resulted in the patient’s family member losing or quitting a job; in 24.4% of debtors, the illness led to getting fired.

* Unaffordable healthcare costs contributed directly to the bankruptcy of 92% of medical debtors.

The Journal authors draw this sobering conclusion in their study:  “[T]he U.S. healthcare financing system is broken not only for the poor and uninsured, but also for insured, middle-class families – they frequently collapse financially under the strain of the current health care system.”

For many, filing for bankruptcy protection may be the best chance to pay off staggering medical debts while holding on to their homes and automobiles.  People stuck in this tough financial situation should consult with an experienced bankruptcy attorney for a free case evaluation so they can start getting their life back on track.

Just over a year after investment bank Lehman Brothers collapsed, the hard-hit credit markets are still picking up the pieces from the financial fallout and trying to make sure a similar credit crisis doesn’t strike any time soon.  In the meantime, the face of the credit industry and borrowing has gone through some major changes.

After Lehman’s failure, a rash of money market and hedge fund managers were forced to declare bankruptcy, and derivative deals with corporate bondholders entered a state of indefinite limbo.  This lead to fear of additional bank failures which choked credit and lending markets even further, all-but-freezing the formerly massive lending market.

Today’s borrowing environment means that corporations must pay much higher capital costs than in the glory days of the past few years prior to the current crisis, despite the fact that U.S. interest rates have in many cases been slashed down to nearly zero.  Many companies now have tight credit caps that mean they can no longer take as many risks on new business ventures or expansions on existing business, which is not good news during an economy seeing U.S. unemployment rates skyrocketing to 26-year record highs.

One indicator of just how risky lending has become is the fact that Moody’s Investors Service actually downgraded ratings on an astonishing $3.5 trillion of U.S. corporate debt last year, after heightened concerns that companies would be unable to pay back later what they’re borrowing today.

Today’s credit crisis presents plenty of headaches and challenges for investors, consumers, and companies alike.  According to an article by Reuters (http://www.reuters.com/article/businessNews/idUSTRE58A2OZ20090911), corporate officers like Scott Morrison, treasurer of Broomfield, Colorado-based Ball, must now spend much more time securing bank commitment letters and build up relationships with banks.  On the flip side, banks now have to diversify their business endeavors in order to limit risk, although this also means decreased profit potential.

Even so, there are signs that the credit crisis may be heading in the right direction–toward recovery.  For instance, issuance has experienced a meteoric rally as investors who have demanded record high returns in exchange for taking risk on purchasing corporate debt have dipped the feet back in the figurative water of the debt pool.  Averages for U.S. junk bond investing have also soared to new heights.  In fact, investors in junk bonds have lead the pack when it comes to the performance of major asset classes on a year to date basis.

According to veteran money manager Dan Fuss, with Loomis Sayles, the U.S. recession has ended but challenges still lay on the horizon.  “We’re not out of this thing yet, but the recovery has started,” said Fuss, looking out at the wharf from his Boston harbor office. “The Titanic has stopped sinking.”

Of course, even with that said, banks face a monumental task in rebuilding balance sheets, while investors are still jittery when it comes to corporate bonds.  Most companies still do not have access to borrowing as easily or freely as they did in the early 2000s.  Then again, they might never enjoy that freewheeling access again–and it may be a good thing for the economy as a whole.

“Declining U.S. housing prices and securitization remain at the heart of the crisis and problems for the prospects for recovery,” said Matthew Tucker, head of U.S. fixed income investment strategy at Barclays Global Investors. “The core problems haven’t gone away.”

Still, at least hope is still peeking over the horizon!  And those consumers and businesses who are hardest hit by the credit crisis should consider consulting with an experienced bankruptcy attorney for strategies on how to ride out the rest of the credit crisis wave.

You are not alone… even Congress is having trouble controlling the credit card industry.  Congress thought they were doing everyone a favor when they implemented a wave of reforms designed to give consumers more protection from abusive credit practices.  In the interest of fairness, Congress also gave the credit card companies time to think and prepare for the transition to the new rules.  The concern, now, is that maybe they gave them too much time.  Instead of taking the time to reform their practices and attitudes towards consumers, many credit card companies used the time to get in some last minute gouging….and congressional leaders are not happy.  As a result, many leaders are now seeking to fast track reform measures and move up their implementation date.  Some reform measures hit in August, but the bulk were not scheduled to take effect until February of 2010.  Rep. Carolyn Maloney is recommending that the effective date be moved up to December 1, 2009.  She explains: “I believe they’re taking advantage and using the time before the effective date badly. Changing the effective date to December 1 is both warranted and wise.”  If approved, the changes will come right before most people begin their holiday shopping.  Some consumer groups hope that the advance date will help consumers.  Others like, John Ulzheimer, president of education for Credit.com, consider it a mere slap on the wrist.

Regardless of which camp you fall into, the bottom line is that it’s as stressful for Congress when it comes to dealing with a credit card as it is for most consumers.  If you are struggling with the balances due on your credit card and you are in the process of having to haggle with a credit card company this can be somewhat disheartening news.  If Congress is having this much difficulty getting them to adopt fair practices, what chances does the ordinary consumer have?   This is not to say that some companies won’t deal fairly with you and rework your payment options.  But the reality is that as the economy get tighter, so do  the financial tactics of credit card companies.  You will feel pressured to accept as true whatever options they tell you that you are available.  You do not have to blindly accept what they offer. Before you fall into another deal which does little or nothing to provide you real relief for your debt situation, consider contacting a bankruptcy attorney in your area to review all of your options.  When it comes to dealing with a credit card company, one of the most important advantages of the bankruptcy process is that it equalizes the bargaining process.  First, you gain an advocate, your bankruptcy attorney, to make sure that you get treated fairly and legally.  If there is a disagreement, a bankruptcy judge will provide referee services and assess penalities if the credit card company breaks the rules.  Despite Congress’ problems, a bankruptcy judge can levy more than a slap on the wrist to make sure that you are treated fairly throughout the bankruptcy process.  Just about everyone hits a point in their life when they struggle financially.  Regardless, that doesn’t mean you deserve to be treated as less of a person and you don’t have to wait for Congress to reconvene for another session to get relief. Immediate help is available through the bankruptcy process.

You are not alone… even Congress is having trouble controlling the credit card industry.  Congress thought they were doing everyone a favor when they implemented a wave of reforms designed to give consumers more protection from abusive credit practices.  In the interest of fairness, Congress also gave the credit card companies time to think and prepare for the transition to the new rules.  The concern, now, is that maybe they gave them too much time.  Instead of taking the time to reform their practices and attitudes towards consumers, many credit card companies used the time to get in some last minute gouging….and congressional leaders are not happy.  As a result, many leaders are now seeking to fast track reform measures and move up their implementation date.  Some reform measures hit in August, but the bulk were not scheduled to take effect until February of 2010.  Rep. Carolyn Maloney is recommending that the effective date be moved up to December 1, 2009.  She explains: “I believe they’re taking advantage and using the time before the effective date badly. Changing the effective date to December 1 is both warranted and wise.”  If approved, the changes will come right before most people begin their holiday shopping.  Some consumer groups hope that the advance date will help consumers.  Others like, John Ulzheimer, president of education for Credit.com, consider it a mere slap on the wrist.

Regardless of which camp you fall into, the bottom line is that it’s as stressful for Congress when it comes to dealing with a credit card as it is for most consumers.  If you are struggling with the balances due on your credit card and you are in the process of having to haggle with a credit card company this can be somewhat disheartening news.  If Congress is having this much difficulty getting them to adopt fair practices, what chances does the ordinary consumer have?   This is not to say that some companies won’t deal fairly with you and rework your payment options.  But the reality is that as the economy get tighter, so do  the financial tactics of credit card companies.  You will feel pressured to accept as true whatever options they tell you that you are available.  You do not have to blindly accept what they offer. Before you fall into another deal which does little or nothing to provide you real relief for your debt situation, consider contacting a bankruptcy attorney in your area to review all of your options.  When it comes to dealing with a credit card company, one of the most important advantages of the bankruptcy process is that it equalizes the bargaining process.  First, you gain an advocate, your bankruptcy attorney, to make sure that you get treated fairly and legally.  If there is a disagreement, a bankruptcy judge will provide referee services and assess penalities if the credit card company breaks the rules.  Despite Congress’ problems, a bankruptcy judge can levy more than a slap on the wrist to make sure that you are treated fairly throughout the bankruptcy process.  Just about everyone hits a point in their life when they struggle financially.  Regardless, that doesn’t mean you deserve to be treated as less of a person and you don’t have to wait for Congress to reconvene for another session to get relief. Immediate help is available through the bankruptcy process.

Despite the fact that the United States has consistently gone through seasons of economic ups and downs which placed ordinary, hard-working people in desperate situations, many still complain and criticize efforts to assist those struggling with financial stability.  We are not the first generation of Americans to suffer an economic drought or to be caught off-guard by a stock market tumble.  As you walk through the gardens, you can understand what those people were feeling, as they laid each brick, and appreciate that they were doing what they could to make it through.  Also keep in mind that they didn’t do it alone.  Unfortunately, a host of public works projects are not available today.  More and more cities are also being caught off-guard with deficit budgets.  The Star-Telegram reported that the City of Fort Worth has eliminated 150 jobs in response to a $61 million deficit for the 2010 budget year.  Additionally, according to the Fort Worth Business Press, they are also looking at pruning another 190 positions and potentially cutting funding for homeless projects.  Last year the city council voted to discontinue funding benefits for employees and their dependents who retire after January of 2009.

Even though relief is limited through city government, you still have other options to help you make it through.  Most debt is dischargeable during bankruptcy, including credit card and medical bills.  Others may not be dischargeable, but a plan can be developed through the process to arrange for repayment of those obligations.  Allmand and Lee can assist you with making informed decisions regarding your debt management plan.  These are hard times, but good things can still happen when you receive good information from a qualified bankruptcy attorney.