Credit Card Application: January 2009

10 Ways of Reducing the Risk of Identity Theft

1- Check your credit report regularly

2- Secure personal information in your home, especially if you have roommates, employ outside help, or are having work done in your home.

3- minimize the amount of information someone can steal, do not carry extra credit cards, your Social Security card, birth certificate or passport in your wallet or purse, except when needed. Always store your wallet in a safe place.

4- Make sure you have a locked mailbox, post office box or commercial mailbox service. When you are away from home for an extended time, have your mail held at the Post Office, or ask someone you trust to pick it up.

5- Pickup new checks at the bank. Do not have them mailed to your home.

6- Reduce the number of credit cards you actively use to a minimum.

7- Cancel unused bank or credit accounts.

8- Keep a photocopy of all your credit cards, bank accounts, and investments.

9- Never give out your SSN, credit card number or other personal information unless you are sure the source is secure.

10- Do not throw out your credit card receipts in public places always take receipts with you.

See more ways to combat identity theft at www.corporatenarc.com

John Parsons is founder of http://CorporateNarc.Com?. The mission of http://www.CorporateNarc.Com? is to educate the public in consumer affairs and to provide consumers with up-to-date business information. In addition we hope to ensure better services for the consumer by exposing business fraud and corruption, as well as unfair and deceptive business practices.

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Watch Out For Credit Repairs

It is very easy to find a site that is neat, professional-looking, and one that offers a free three-agency credit report and free credit report without a credit card.

This scam is too good to be true. Usually the only catch is an upfront charge to the consumer of $7.95 or something similar for each disputed item on your report. I was on the verge of signing up, but got a sneaking suspicion that something wasn''t right.

Every other site I''d seen offered an Equifax report for free, and a three-agency report for around $35. How could they offer it for free, and How could anyone get a free credit report without a credit card?

Skeptical, I researched the company and found multiple complaints. One of the prominent ones was a claim that they disputed every negative entry on your credit report without your approval, and then charged you $7.95 for each one.

I requested an explanation of the above link to give them a chance to share their side of the story. While I awaited their response I continued my research.

The Department of Justice says there is nothing a credit repair agency can do that you can''t do for free, making Clear Credit''s offer seem even more suspicious.

Almost all of the other sites I found made it clear that you should be suspicious of anyone claiming to improve your credit for a fee and offering free credit report without a credit card, because non-profit groups are available to help people with credit trouble.

My hopes were dashed in a matter of days. I received two e-mails from Clear Credit, but they didn''t contain an explanation. They told me to act now to improve my credit.

They spam a potential customer who made a perfectly legitimate request for more information. I was not impressed.

My search to find a quality three-agency credit report for a low price will continue, but Clear Credit is clearly off the list.

This article my be reproduced as long as the author''s name and url to http://www.Corporatenarc.com are present at the end of the article.', 127, 'Watch Out For Credit Repairs, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Watch Out For Credit Repairs plus articles and information on Credit

How To Protect Yourself Against Credit Card Fraud

In the high tech world of today, credit card fraud is an ever increasing problem.

By 2005 it is estimated that the online payment industry will capture $12.5 Billion in revenue. This is up over 20% from 2004.

In the United Kindom alone, credit card fraud cost companies £504.8 Million in 2004.

With so many people shopping and paying online it is no wonder that credit card fraud is on every online consumer''s mind.

There is no way to guarantee credit or credit card fraud will never happen to you. But there are a few steps you can take to make it more difficult for someone to capture your card or card numbers and minimize the possibility.

Sign your cards as soon as they arrive.

Carry your cards separately from your wallet, in a zippered compartment.

Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place.

Keep an eye on your card during the transaction, and get it back as quickly as possible.

Void incorrect receipts.

Destroy carbon copies.

Save receipts to compare with billing statements.

Open bills promptly and reconcile accounts monthly, just as you would your checking account.

Report any questionable charges promptly to the card issuer.

Notify card companies in advance of a change in address.

IT is important to remember to not give your credit card to anyone.

Never leave credit cards or receipts lying around.

Never give out your account number over the phone.

This article my be reproduced as long as the author''s name and url to http://www.Corporatenarc.com are present at the end of the article.', 127, 'How To Protect Yourself Against Credit Card Fraud, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'How To Protect Yourself Against Credit Card Fraud plus articles and information on Credit

UPS Delivers the Goods, Your Identity

Well now we add CitiGroup and UPS to the Identity Theft corporations who have allowed Americans identity to be lost. Each time we have another identity theft case, we find larger and large numbers being lost. We have hear of some of them; Petco, choice Point, LexisNexis and the Citigroup, where a UPS van was broken into and a tape was stolen with 3.9 million US customers personal financial data and identity information?

In small cases of identity theft most police departments find a 90% connection to crystal meth drug addicts. So if you lose you identity or credit cards, generally it is a meth user. It is estimated that 50 million Americans have had identity theft issues and over 100 million Americans have bogus data on their credit reports.

If one-third of all Americans have bogus information on their credit, then why are we using the credit information for anything? After all it is garbage in garbage out as they say? As we link up the data bases of government agencies, credit bureaus we find that all the data is bunk, meaning why are we linking all the data together if we now it is all junk data?

So the real question is not just; "is my identity safe?" But also is my information even valid in the first place? Which means you could be forced to pay for a charge that isn''t yours or have a loan turned down because of bad data. Or worse be arrested for stuff that links you to something you never did, but in which your identity was stolen in order to make such a purchase? Perhaps we need a complete data dump and start over. Since the systems and databases are so utterly incorrect no one knows what is up? But first we need to devise a full proof system to protect the integrity of the data from theft and misuse and keep bogus data out of the system.

We had a system like that once. It was called "cash" ever heard of it? Well anyone who is born on 2010 or later will not understand what you were talking about. Do you think that the authorities will ever figure out identity theft by then? Or will they still keep using BS data and allowing Americans to be harmed by identity theft and throw up their hands and say well, there is nothing we can do about it.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs', 127, 'UPS Delivers the Goods, Your Identity, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'UPS Delivers the Goods, Your Identity plus articles and information on Credit

Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure

Let''s face it, if you are facing the possibilities of losing your home due to a foreclosure and you think that you may never be able to purchase another home anytime soon. Keep reading.

I am going to share with you four steps you need to prepare yourself for that transition down the road. First, if you lost your home because of a foreclosure or you''re about to, don''t give up. The worst thing you can do right now, is to do nothing.

First: Get a copy of your credit report to see what a potential creditor will see and immediately start making repairs to clean up any negative infractions, stay away from credit repair companies.

Visit: http://www.creditinfocenter.com

Second: While you are rebuilding your credit, start putting together an emergency fund. Start off by saving three months of your mortgage/rent payments and three months of car payments for obvious reasons.

Three: Go to your book store, library or online and start educating yourself on lease purchase. I mention lease purchase because of your temporary credit and money requirements. You can normally get into a house with a small down payment and no credit check. Just be prepared to purchase that property down the road. That''s why you need to clean up your credit and who knows, you might start making money with this new found information.

Here are two extraordinary sites for you to visit for more information: http://www.lease2puchase.com and http://www.creonline.com.

Four: Start putting together your financial plan. Set goals for your future retirement, college for you or your children. Start a business. Find a financial planner one who will work with you and his motivation is not to sell you something you don''t need, just so he can get a commission.

When the time comes in a few years after you have put a down payment on your lease purchase home, rebuild your credit, raise your credit score; set aside an emergency fund and designed a financial plan, then you will be ready to buy your next home.

For a free report titled "How You Can Stop Your Home From Going Into Foreclosure Without Selling or Filing Bankruptcy", call 770-210-8797 or email: bjohn54928@aol.com

Bobby Johnson is a Comprehensive Financial Planner/Accountant/Speaker/Author. He has written many articles and books on foreclosures " How To Save Your Home From Foreclosure and Not Lose Your Mind" and "How To Stand Up To Collection Companies and Win".', 127, 'Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure plus articles and information on Credit

What Is A FICO Score?

Your FICO score or credit score as it''s commonly called is a very important calculation that can control whether or not you are eligible to receive credit and if eligible the terms you can receive credit under. Failure to understand the impact this score can have on you future purchasing power and lifestyle can be disastrous. This article will break down all the information you need to know regarding your FICO score.

As I mentioned above the FICO score is a numerical score that is based on your financial history as collected in your credit report. Creditors can use this number to evaluate whether or not you are able to pay a loan back on time. The higher the score the more likely you are to pay off a loan on time and the less of a credit risk you pose.

The FICO or credit score ranges are broken down as follows:

720-850 - This represent the best score range

700-719 ? Able to obtain favorable financing terms

675-699- This is still a decent score range

620-674 ? May have trouble obtaining favorable credit terms

560-619 ? May have trouble obtaining credit

500-559 ? Time to improve your score

Your credit score is broken down into 5 distinct categories each with their own importance based on a percentile. The 5 categories and the percentage they represent I relation to your credit score are as follows:

Payment History ? 35%

Amounts Owed ? 30%

Length of Credit History ? 15%

New Credit ? 10%

Types of Credit Used ? 10%

Your payment history contains information on credit cards, retail accounts, installment loans, finance company accounts and any mortgages you may have had. It also details any past due accounts and the amount owed on hem. You will also find bankruptcy information as well as other adverse information in regards to your credit history. This is why it warrants a 35% piece of the pie.

Your amount owed is generally speaking the amount owed on any accounts you currently have and number of accounts with balances. Note that it has a large impact (30%) on your credit score. The length of your credit history details when accounts were opened and the last activity on those accounts. New credit shows the number of recently opened accounts by the type of account and number of account inquiries. Finally the type of credit used is a snapshot of what types of financing you have held.

Other information that is included in your credit report but has no bearing on your FICO score includes your race, age, where you live and your sex and employment information. Although the FICO score doesn''t use these factors the employment information may be used by other companies and creditors to help in their decision making process.

There are three major credit-reporting agencies - Equifax, Experian and TransUnion that have your credit information on hand. Each of these credit bureaus maintains their information separately, which can cause the financial data to be slightly different among the three of them. Most experts agree that in order to get the best snapshot of your financial history and credit worthiness it is a good idea to request a report from each of the reporting agencies. It is also highly recommended that you actually review your credit report once a year in order to identify and correct any errors before they cause any future potential problems when you apply for credit. Recent changes in the laws no allow for consumers to request 1 free credit report each year in order to look for any such errors.

Here is the contact information for each of the three reporting credit bureaus:

Equifax: (800) 685-1111, www.equifax.com
Experian: (888) 397-3742, www.experian.com
TransUnion: (800) 888-4213, www.transunion.com

As you can see your FICO Score is a very important number that represents your financial trustworthiness in the eyes of creditors. Failure to properly monitor it could cause you future headaches when it comes time to apply for any form of credit.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and credit repair information that you can research in your pajamas on his website.', 134, 'What Is A FICO Score?, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'What Is A FICO Score? plus articles and information on Debt-Relief

Is There Any Way To Get Out Of Debt?

In this era where we are bombarded daily with commercials on television, radio, billboards, through email, not to forget the flyers slipped under the car''s wiper blades while shopping at the mall, it''s no surprise that so many of us find ourselves endlessly in debt to the services and products offered by others. How can we refuse, when we''re baited with the juicy orange carrot of ''0% APR'' up to a certain amount or for a specified time, or ''no money down'' and ''easy installments'' of just so much per month?

Before we know it, we''re in debt. We have credit card payments, consumer loan payments, car payments, a home mortgage, and only enough money coming in to pay the minimum amounts each month. Then, we start noticing a different set of ads being directed at us from every marketing angle imaginable. Get a home equity loan and pay off your credit cards, some suggest. Start your own home business using our ''unique, proven'' system, and all your financial problems will be gone before you know it. But, are these really the solutions that most of us so desperately need?

Far too many of us are as quickly bought by these financial rescue ads as we were bought by the ads that inspired us down the road to financial trouble. And, when we''ve tried more than one and found ourselves still dealing with monthly minimum payments or even possibly just finding ourselves deeper in debt for having tried so many systems, we end up asking ourselves what were doing wrong. Some who are financially struggling do take the route of taking a loan to pay off the loans already made with others, and get the instant gratification of available credit all over again. Or building a home business that does generate a positive return of some sort, giving them more financial freedom to spend freely on themselves and their loved ones. But, by doing this, are we really resolving the problem? And, what about those that don''t have or want these options - regardless how many happy testimonials from clients are shared?

Not everyone owns a home or, for the ones that do, may be leery about the idea of taking out a massive loan to pay off many smaller loans. Not everyone wants to start a home based business, they just want the freedom that comes with not having a lot of debt every month. And, most importantly, the quick fix solutions to life''s financial troubles doesn''t give any insight into how we got ourselves into this financial situation in the first place, and how to avoid it now that we have the spending capital that comes with available credit again. So, for the many of us who are seeking a genuine solution to our financial woes, what is the answer we''re looking for?

The answer may be a lot closer than we think. It first starts with developing awareness of where our paychecks are going and to whom. Yes, the ol'' balance sheet thing, where we keep a detailed log of our spending activities. And, where we determine by simple addition just how much we presently owe to those who have loaned us money for life pleasures and necessities. Now that we know where we actually are, we can now determine just where we want to be. But, just doing this doesn''t solve the problem. Rather, we''ve managed to illuminate it, so what do we do from here?

For starters, get the financial knowledge that we so desperately need to stop the growing cycle of debt building, and start eliminating the troublesome debts that consume our paychecks month after month. Fortunately, this knowledge is not that hard for us to find, if we know where to look. There are non-profit organizations advertising on television and radio that are devoted to helping people consolidate there debts, and this is a start. Other sources require a purchase of there educational media or encourage membership in their organization for a nominal fee, and the information provided can be more than worth the small investments if the teachings are taken seriously and applied to one''s real life budget.

Maybe the solution is literally as simple as the way one teacher on the subject puts it: "If you don''t want to make the hole that you''ve dug for yourself any bigger, then stop digging!" Sure, this may mean having to do without some of the latest technological gadgets, or having to discipline yourself into putting a small amount of the monthly paycheck into a savings account. But, any step that will allow us to keep more of the money we''ve worked so hard for is a step in the right direction. Then, comes the focus on eliminating the burdensome debts that are already weighing us down. And, it may take awhile. But, isn''t the freedom to do what we want with our money worth the effort and time?

After freeing ourselves from the obligations to creditors and banks, the money once spent on debts needs to go somewhere. Maybe it''s now time to consider investing this money into stocks or real estate or, possibly, even a business that in time will generate a positive return on our money. This, too, will require some education into the what and how of making wise investments. But, the information is as readily at hand for those who are ready as the solutions to relieving debt.

Then, comes the need to assure ourselves that we won''t fall back into the monthly drag of giving away our money to the advertisers that so diligently entice our attention. Resisting the urge to buy into costly items is one way of dealing with this. But, in a land of prosperity such as ours, is it really necessary to live frugally? There may be yet another way. How about buying the assets that will generate an income that we can then spend on these desired possessions?

Not necessarily a novel or new concept, but.... How many of us struggling monthly with debts ever considered the possibility that we really have the opportunity to reach this point? Regardless our present status in life, what can we really achieve with just a little awareness, thoughtful planning, and the knowledge of what to do and when to do it? For those who are seriously looking, there is a way out of debt. And, though each person''s situation may be slightly different, the steps that are outline above have been used and proven to be effective by countless individuals who live financially happy lives. Just check out their ads!

Joseph T Farkasdi is the President of JtseF, Inc. and is a member of the Financial Freedom Society. He is an entrepreneur who is committed to helping others achieve the financial lifestyle they desire. For more information on eliminating debt, visit http://www.jtsef.com/financial.htm.

GettingOutOfDebt@jtsef.com', 134, 'Is There Any Way To Get Out Of Debt?, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'Is There Any Way To Get Out Of Debt? plus articles and information on Debt-Relief

What Is A Chapter 13 Bankruptcy?

Many consumers that are bogged down in debt frequently turn to bankruptcy as a form of restoring their financial status back to a zero balance. Unfortunately many of these same consumers are confused when it comes to the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy. This quick article will explain what a Chapter 13 bankruptcy actually is and what it does for a consumer that files this form of debt relief.

Before explaining what a Chapter 13 is I want to make sure that you are familiar with what the definition of bankruptcy actually means. It is basically a legal process that is filed in a court of law. The reason for filing this debt elimination strategy is to relieve individuals or businesses that cannot pay their current financial obligations of those same debts. This allows them a fresh start on their finances.

A Chapter 13 bankruptcy which normally runs around $185 to file is commonly referred to as reorganization bankruptcy. This form of debt elimination is filed by consumers that wish to ay their debt off between a period of 3 ? 5 years. This is a preferred strategy for individuals that wish to actually keep some of their possessions and have the means to financially meet their normal living expenses while still having money left over to pay towards their accumulated debt.

When filing a Chapter 13 the individual will present a bankruptcy petition which list the consumer''s schedule of assets and liabilities. Immediately following this the person filing bankruptcy will have to present a repayment plan that is carefully reviewed by the debtor''s creditors to see if it meets their needs. If there are no objections or points of argument then both the creditors and consumer filing bankruptcy must follow the reorganization plan.

Additional confirmation tests remain before a reorganization bankruptcy takes place. One of these tests compares the amount that the unsecured creditors will receive under the plan to the amount they would receive under a Chapter 7 bankruptcy. Basically what this means is that all unsecured creditors must be able to receive the same amount of monetary compensation under a Chapter 13 as they would for a Chapter 7. A final test requires that the individual filing bankruptcy must also pay all of their disposable income into the repayment plan.

A Chapter 13 is especially beneficial for consumers interested in keeping on to some very important possessions such as their home. For instance if the consumer has missed several house payments and is facing the scary possibility of a foreclosure they can effectively halt the foreclosure by filing for Chapter 13 bankruptcy. This is normally referred to as an automatic stay. This allows time for the consumer to catch up on missed payments. If the individual is unable to effectively catch up during this reorganization period then the foreclosure proceedings will continue as before.

When it comes to a Chapter 13 or any other form of bankruptcy it is highly recommended that an attorney who is knowledgeable in bankruptcy law be consulted in order to receive the most accurate information. One additional note - although a bankruptcy can restore an individual''s financial status it does so with the high price of that same consumer''s credit suffering a blemished record for about 10 years making it difficult to obtain future credit when needed.

Timothy Gorman is a successful webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and bankruptcy information that you can research in your pajamas on his website.', 134, 'What Is A Chapter 13 Bankruptcy?, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'What Is A Chapter 13 Bankruptcy? plus articles and information on Debt-Relief

Improving Your Credit Report

Even if you think you have a wonderful credit report, be wary of the error factor. Just as you receive mail with your name and address misspelled, your credit report can have errors as well. Whether it''s human error, out of date information or even mistaken identity, errors occur more easily than we''d all like to think.

Under the law, both the credit reporting agency and the organization that provided the information to the credit reporting agency have responsibilities for correcting inaccurate or incomplete information in your credit report.

So, if you find an error on your report, be sure to notify the credit bureau in writing immediately:

1. Tell the CRA what information you believe is inaccurate on your credit report. Include copies, never originals of documents that support your position.

2. In addition to providing your complete name and address, your letter should clearly identify each item in your credit report that you dispute. State the facts and why you are disputing the information. Enclosing a copy of your credit report with the items in question circled can be helpful.

3. Though you may think your reason for writing is obvious, be sure to request that the error be corrected.

4. Send your letter by certified mail, return receipt requested so you can document what the credit reporting agency received. Make sure your letter is dated, and don''t forget to keep copies of everything you send.

Credit reporting agency must reinvestigate the item(s) in question, usually within 30 days unless they consider your dispute frivolous. They also must forward all relevant data you send them to the information provider (bank, credit card agency, etc.).

After the information provider receives notification of a dispute from the credit reporting agency, it must review and investigate all relevant information provided and report the results back to the credit reporting agency.

If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit reporting agency so that they can correct this information in your file.

Disputed information that cannot be verified must be deleted from your file.

Inaccurate information must be corrected by the CRA.

Incomplete information must be corrected by the CRA.

Any account that belong only to another person must be deleted by the CRA.

NOTE: Credit repair can be long and tedious, the importance of knowing your rights cannot be emphasized enough so be sure you take time to digest this information.

To find more easy steps anyone can take to repair there credit report and what to do after the investigation visit http://www.creditandyou.com/creditrepair.html it''s a free information website!', 127, 'Improving Your Credit Report, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Improving Your Credit Report plus articles and information on Credit

Like It Or Not, You Have A Score To Settle! Part 1

Just when most people finish with school and can stop worrying about test scores, there''s a new kind of scoring that enters the picture. It''s called credit scoring. And, its impact on your financial future can mean more to you than a college degree.

Why It''s So Important:

Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you''d be a good risk for credit cards and auto loans. More recently, scoring has been used to help creditors evaluate your ability to repay home mortgage loans.

Precisely what is credit scoring?

Credit scoring is a system creditors use to help determine whether to give you credit. Information about you and your credit experiences, such as bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and age of your accounts is collected from credit applications and your credit report.

Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A scoring system awards points for each factor that helps predict who is most likely to repay a debt. Total number of points helps predict how creditworthy you are; how likely it is that you will repay a loan and make payments when due.

Why is credit scoring used?

Credit scoring is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applications objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.

To develop a model, a creditor selects a random sample of its customers (or a sample of similar customers if their sample is not large enough), and analyzes it statistically to identify characteristics that relate to creditworthiness. Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good credit risk.

Each creditor may use its own scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company.

How reliable is the credit scoring system?

Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, scoring systems must be based on a big enough sample. Remember that these systems generally very from creditor to creditor.

Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.

In fact, many creditors design their systems so that, in marginal cases, applicants whose scores are not high enough to pass easily, or are low enough to fail absolutely are referred to a credit manager who decides whether the company or lender will extend credit. This may allow for discussion and negotiation between the credit manager and the consumer.

What happens if you are denied credit or don''t get the terms you want?

For the answer to that crucial question and how to improve your credit score, be sure to read Part II of "Like It Or Not, You Have A Score To Settle." at Credit And You.com

Credit and You.com are a group of credit expert, who have created a free credit information website for consumers. Feel free to pass this article along to family and friends. http://www.creditandyou.com/creditscoreexplained.html', 127, 'Like It Or Not, You Have A Score To Settle! Part 1, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Like It Or Not, You Have A Score To Settle! Part 1 plus articles and information on Credit

How To Survive In A Plastic World, Qualifying For Credit Card

Let''s face it, having credit is no longer a choice. "Don''t leave home without it" is more like "can''t buy a home without it." Your credit now determines the neighborhood you live in, the kind of car you drive and, sometimes, even whether or not you get a particular job.

Credit cards are great financial tools and the convenience they provide is beyond question

They are easier to carry than cash and offer valuable consumer protection under federal law.

Establishing A Good Credit History

Suppose you haven''t financed a car loan, a computer or some other major purchase. How do you begin to establish credit?

First, consider applying for a credit card issued by a local store and use it responsibly. Ask if they report to a credit bureau, most major department stores do. If they do and if you pay your bills on time you''ll establish a good credit history.

Second, consider a secured credit card. A secured credit card requires that you open and maintain a bank account or other asset account at a financial institution as security for your line of credit. Your line of credit will be a percentage of your deposit, typically from 50 to 100 percent. Credit card application and processing fees are not uncommon for secured credit cards. In addition, secured credit cards usually carry higher interest rates than traditional no secured credit cards.

What To Do When You Are Denied A Credit Card

If you''re turned down for a credit card, it is important that you ask why. It may be that you haven''t been at our current address or job long enough, or that your income doesn''t meet the issuer''s criteria. As you''ll discover, different credit cards companies have different standards. But, if you are turned down by several companies, that may indicate that you are not ready for a credit card.

On the other hand, if you''ve been denied a credit card because of information supplied by a credit bureau, federal law requires the creditor to give you the name, address and telephone number of the bureau that supplied the information. If you contact that credit bureau within 60 days of receiving the denial, you are entitled to a free copy of your report.

It is extremely important that you dispute any inaccuracy with the credit bureau, but also with the company that furnished the information to the credit bureau. No one is going to make corrections on your behalf.

"Credi-quette" --The Miss Manners Guide To Proper Credit Card Handling

Once you get a card in the mail, sign it immediately so no one else can use it. Note that the accompanying papers have important information, such as customer service telephone numbers in case you have questions or your card is lost or stolen. File this information in a safe place ? one that is easy for you to access.

Call the card issuer to activate the card. Most cards come with stickers affixed that give you a telephone number to call. Many issuers require this step to minimize fraud and to give you additional information.

Keep your account information to yourself. Never give out a credit card number or expiration date over the phone unless you know who you''re dealing with. A criminal can use this information to steal money from you, or even assume your credit identity.

Keep copies of sales slips and compare charges when your bill arrives. Promptly report in writing any questionable charges to the card issuer.

Don''t lend your card to anyone, even a friend. Your credit privileges and history are too precious to risk.

Credit Card Land Mines ? Watch Your Step!

While a credit card makes it easy to buy something now and pay for it later, you can lose track of how much you''ve spent by the time the bill arrives if you''re not careful. And if you don''t pay your bill in full, you''ll probably have to pay finance charges on the unpaid balance. What''s more if you continue to charge while carrying an outstanding balance , your debt can snowball.

Before you know it, your minimum payment is only covering the interest. If you start having trouble repaying the debt, you could tarnish your credit report. And that can have a sizable impact on your life. When a negative report makes it more difficult to finance a car or home, get insurance or even get a job, it can be frustrating, embarrassing and downright painful.

To find out additional rights you have as a credit card user, how to get your first credit card, easy steps anyone can take to repair there credit report, the different types of credit cards accounts, and how to find out if your getting the best credit card deal visit http://www.creditandyou.com/creditcards.html it''s a free information website!', 127, 'How To Survive In A Plastic World, Qualifying For Credit Card, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'How To Survive In A Plastic World, Qualifying For Credit Card plus articles and information on Credit

All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA

Fact: Over 150 million Americans have credit report with the three major credit reporting agencies. Approximately 50 million of these credit reports contain errors, many of which are inaccurate. Do you know what''s on your credit report?

If you''ve ever applied for a charge account, a personal loan, insurance or a job, there''s a credit report about you. This credit report contains information on where you work and live, how you pay your bills, and whether you''ve been sued, or filed for bankruptcy.

About The Fair Credit Reporting Act? (FCRA)

The Fair Credit Reporting Act was the first federal law to regulate the use of personal information by private business. It was all the way back in 1899 that the first major credit reporting agency was started. Over time, credit reporting grew into a huge industry and, by the late 1960''s, became surrounded by controversy.

Credit reports from the Credit Reporting Agencies were being used to deny services and opportunities. At that time, you would have had no right to see what was in your credit report. The FCRA was passed in 1970 and fortunately now you have that right.

On December 4, 2000 President George Bush signed into law the first phase of the Fair And Accurate Credit Transactions Act (FACT Act), which amends the FCRA. The FACT Act establishes the Financial Literacy and Education Commission and calls for a national financial literacy campaign.

The act addresses consumer''s rights to understand and protect the information in their credit report and to get help when their financial information has been stolen. It also restricts the use of medical information in determining a consumer''s eligibility for credit, and also limits the sharing of medical information with affiliated companies under certain circumstances.

Here are some questions consumers commonly ask about credit reports, Consumer Reporting Agencies and the answers. Note that you may have additional rights under state laws. You can contact your state Attorney General or local consumer protection agency for more information. You also have information and resources at your disposal 24/7 at: www.creditandyou.com.

Q. What can I do about inaccurate or incomplete information?

A. Under the new law, both the Consumer Reporting Agencies and the information provider have responsibilities for correcting inaccurate or incomplete information in your credit report. To protect all your rights under this law, contact both the Consumer Reporting Agencies and the information provider. See credit repair article by credit and you.com

Q. Can my employer get my credit report?

A. Only if you say it''s okay. A consumer reporting agencies may not supply information about you to your employer, or to a prospective employer without your consent.

Q. Can creditors, employers or insurers get a report that contains medical information about me?

A. Not without your approval.

Q. How can I stop a consumer reporting agencies from including me on lists for unsolicited credit and insurance offers?

A. Creditors and Insurers may use consumer reporting agencies file information as a basis for sending you unsolicited offers. These offers must include a toll free number for you to call if you want to remove your name and address from lists for two years, completing a form that the consumer reporting agencies provides for this purpose will keep your name off lists permanently.

Q. Do I have the right to sue for damages?

A. You may sue a consumer reporting agency, a user or in some cases a provider of consumer reporting agency data in state or federal court for most violations of the FCRA. If you win, the defendant will have to pay damages to reimburse you for attorney fees to the extent ordered by the court.

Q. Are there other laws I should know about?

A. Yes. If your credit application was denied, the Equal Credit Opportunity Act (ECOA) requires creditors to specify why if you ask. For example, the creditor must tell you whether you were denied because you have no credit report with a consumer reporting agency or because the consumer reporting agency says you have delinquent obligations. The ECOA also requires creditors to consider additional information you might supply about your credit history. You may want to find out why the creditor denied your application before you contact the consumer reporting agencies. See Equal Credit Opportunity Act article by credit and you.com

Stay On Top Of Your Credit

Before financing anything, car, furniture, or a home, it''s a god idea to make sure your credit report is clean. Errors can often be quickly removed. And no sales person should ever know more about your credit report than you.

To find out: additional rights you have, who can get a copy of your credit report, how long negative information can be reported, easy steps anyone can take to repair there credit report, what you can do if the credit reporting agencies won''t correct information in your credit report, or to read more about the Equal Credit Opportunity Act visit http://www.creditandyou.com/creditreports.html it''s free a information website!', 127, 'All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA plus articles and information on Credit

Understanding Your Rights Under The Equal Credit Opportunity Act

It wasn''t all that long ago that lenders blatantly discriminated when it came to approving credit for women and minority groups. Women were actually asked personal and demeaning questions like, how many children do you plan to have in the future or are you on birth control?

Despite the fact that they were entering the workforce in record numbers, single women were often required to get a cosigner or denied credit altogether. Members of minority groups were denied credit as well, even though they were fully qualified.

Today thanks to the Equal Credit Opportunity Act, millions of consumers from all walks of life are given and equal chance to obtain and use credit to finance educations, buy or remodel homes or get small business loans.

The Equal Credit Opportunity Act, which was passed by congress in 1973 first banned discrimination in credit access on the basis of sex or marital status and was later amended to include race, religion, national origin and age. Of course, this doesn''t mean all consumers who apply for credit get it. Factors such as income, expenses, debt and credit history are considerations for credit worthiness.

But the law protects you when you deal with any creditor who regularly extends credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Anyone involved in granting credit, such as real estate brokers who arrange financing, is covered by the law. Businesses applying for credit also are protected by the law.

When You Apply For Credit, A Creditor May Not.

Discourage you from applying for credit because of your sex, marital status, age, race, national origin, or because you receive public assistance income.

Ask you to reveal your sex, race, national origin, or religion. A creditor may ask you to voluntarily disclose this information, except for religion if you''re applying for a real estate loan. This information helps federal agencies enforce anti discrimination laws. You may be asked about your residence or immigration status.

Ask if you''re widowed or divorced. When permitted to ask marital status, a creditor may only use the terms: married, unmarried, or separated.

Ask about your marital status if you''re applying for a separate, unsecured account. A creditor may ask you to provide this information if you live in community property states, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington. A creditor in any state may ask for this information if you apply for a joint credit account or one secured by property.

Request information about your spouse, except when your spouse is applying for credit with you. Note: your spouse will be allowed to use the credit account. You are relying on your spouse''s income or on alimony or child support income from a former spouse; or if you reside in a community property state.

Inquire about your plans for having or raising children.

Ask if you receive alimony, child support, or separate maintenance payments, unless you''re first told that, you don''t have to provide this information if you won''t rely on these payments to get credit. A creditor may ask if you have to pay alimony, child support, or separate maintenance payments.

A Special Note To Women

A good credit history, a record of how you paid past bills often is necessary to get credit. Unfortunately, this hurts many married, separated, divorced, and widowed women. There are two common reasons women don''t have credit histories in their own names: they lost their credit histories when they married and changed their names, or creditors reported accounts shared by married couples in the husband''s name only.

If you''re married, divorced, separated, or widowed, contact the credit bureaus to make sure all relevant information is in a file under your own name.

To find additional rights you have, what a creditor may not do: when deciding to give you credit or evaluating your income for credit and what to do if you suspect discrimination visit http://www.creditandyou.com/yourcreditrights.html it''s free information website!', 127, 'Understanding Your Rights Under The Equal Credit Opportunity Act, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Understanding Your Rights Under The Equal Credit Opportunity Act plus articles and information on Credit

Credit Education

Having credit education is like knowing how to read. It will be necessary throughout your life.

Once you learn it, you will know it forever. Once you establish good skills, they will help you to get ahead throughout your life.

So, it is vital to get the education you need or to provide this education to your children.

Did you make mistakes along the way? Teach them how to avoid these.

If you are trying to learn about credit education on your own, it is important to talk to others as first hand experience really helps to teach the basics.

Knowing that this type of education is vital is the most important aspect of all.

What is credit education?

It is a basic term that applies to knowing how to build and maintain good credit. In the beginning, credit is a dangerous thing.

We all think we will be able to pay it off and do not worry. For those that do not understand that this will not be easy, the bill comes and we wonder what we spent it on.

Or, there are those that refuse to use credit at all then have trouble later in life when they cannot purchase a car or home because they have no credit.

The middle ground is the road that will lead you to where you want to be.

Again, the best place to get the education is right in front of you. Talk to those you know who have had good and bad experiences. Find out what they did.

The most important things to know about credit are the basics.

Do not overspend.

Pay your balance off in full each month.

Make your payments on time.

Don''t take on too much credit either.

Getting credit education may seem silly, but in reality it can keep you from making big purchases that you cannot afford.

In the end, you have the ultimate choice. And, it is the same as with learning to read.

Either you never learn how to and struggle your entire life or you take the time know to learn and breeze through it throughout the rest of your life.

For continually updated information, tools and resources visit the CreditAndCreditReports.com blog.', 127, 'Credit Education, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Credit Education plus articles and information on Credit

Top Ten Reasons People File for Bankruptcy

1. Eliminate the legal obligation to pay many of your debts.

This process of wiping the slate clean is called a discharge of debts. The goal of a discharge is to reduce debt to give you a fresh start. Whether it is through straight bankruptcy (Chapter 7 Bankruptcy) or through reorganization (Chapter 13 Bankruptcy), most or all of your debts can be cleared.

2. Stop foreclosure on you house and allow you to effectively make payments to catch up on missed payments of your mortgage.

If your home is in foreclosure, Chapter 13 Bankruptcy will stop the foreclosure any time prior to the sale. Bankruptcy does not eliminate mortgages on your property without payment. Rather, bankruptcy will structure a plan in order to repay your mortgage arrears (the amount that you are behind).

3. Prevent your car or other property from being repossessed.

Even if the creditor has repossessed your car, filing bankruptcy can effectively force them to return your car or other personal property (if the bankruptcy is filed quickly enough). The past payments you have missed will be consolidated into your Chapter 13 Bankruptcy plan. After this you will no longer pay the finance company, rather you will make monthly payments to the trustee of your Chapter 13 Bankruptcy who will then pay the finance company.

4. Reduce or even eliminate high medical bills.

Sometimes an unfortunate accident or major recently discovered illness can completely ruin a family. Many families have to make choices on allocation of bills. Often, bills that were once important become insignificant to the large medical bills acquired by a loved one. Filing Chapter 7 Bankruptcy can greatly reduce the amount of medical bills.

5. Recent loss of employment.

Studies show that loss of work is one of the most common reasons people file for bankruptcy. This is very easy to see. A family can get comfortable on two maybe even one salary. They can take on regular amount of debts, join clubs, and pay normal bills with relative ease. All of a sudden one or both spouses lose a job and a family must go from two salaries to one. Losing a job is closely tied to high medical bills. Losing a job means this family may be left without the protection of insurance that was once provided by their employer. Often times these two factors combined create an almost impossible mountain to climb without the help of bankruptcy.

6. Stop harassing behavior from creditors.

Some creditors do not always take the right course of action when attempting to collect a debt. Often, creditors will persistently call the home of a particular debtor with demeaning and abusive behavior. Not only is this unethical it can rise to the level of unlawful. In essence, bankruptcy will put on hold the demands of many creditors and stop the harassing phone calls and other inappropriate behavior all together.

7. Restore or prevent your utilities from being shut off.

As you have probably seen many of these reasons overlap. Some lead to another. If your home is in risk of foreclosure then your utility bill may also be in risk of being terminated. Filing bankruptcy can prevent the utility company from leaving you in the dark.

8. Provide help for large amounts of student loan debt.

While it is true that your student loans will not be eliminated like several other types of unsecured debt, bankruptcy can consolidate your student loan debt. This consolidation will allow a debtor to make monthly payments through Chapter 13 Bankruptcy that are within the financial ability of the debtor.

9. End wage garnishments.

Chapter 7 Bankruptcy will stop wage garnishment. Wage garnishment basically takes away your weekly earnings often times leaving you without necessities. Chapter 7 Bankruptcy allows you to purchase necessities for you and your family. Chapter 13 Bankruptcy will also help in this regard.

10. Challenge certain claims of fraudulent creditors.

Bankruptcy will allow you to challenge these claims from creditors who are trying to collect more money from you than you really owe. An attorney can provide the support and the backing you will need to step up to these creditors. Attorneys often even the playing field between a big creditor and a single debtor. Filing bankruptcy with an attorney can stop fraudulent reporting by a creditor.

Original content from http://www.bankruptcyhome.com

You can also view more related articles at http://www.bankruptcyhome.com/articles.htm', 134, 'Top Ten Reasons People File for Bankruptcy, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'Top Ten Reasons People File for Bankruptcy plus articles and information on Debt-Relief

Bankruptcy, Is It A Way Out

Negotiations with creditors have failed. Repossession is imminent and foreclosure proceedings have begun. Your income is simply not sufficient to pay your bills, no matter how low the payments are. It may be time to consider bankruptcy.

Bankruptcy law evolved as a reaction to the abuses surrounding debtors prison. Before the nineteenth century a prison system existed for those who didn''t pay their bills. If a merchant filed a claim, the debtor was incarcerated until his debts were paid. (Women were not found in debtor''s prison, not because of chivalry but because they did riot have the ability to borrow). The lender was legally responsible for the expenses of the prison stay, including food, but seldom paid. After all, a debtor would have to sue in order to enforce this law, and it was rather difficult to sue when in prison. As a result, many borrowers languished in prison for years, surviving on what their family could bring to them or, in many cases, simply starving to death. Although some lenders would doubtless not object to the renewal of debtor''s prison, fortunately we live in more enlightened times. Bankruptcy was created to provide a second chance (or third, or fourth) to those hopelessly in debt It provides a mechanism to wipe the slate clean and begin anew. As times have changed, though, so has the bankruptcy code. Not all debts can be wiped out. The proceedings can be easily disqualified in the event of improper procedures. There are many things a debtor should know before resorting to bankruptcy.

The Bankruptcy Decision

There are two kinds of individual bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy, named for the chapter number in the bankruptcy code, requires a full liquidation of all debts and cancels all no-exempt debts. Chapter 13 bankruptcy is essentially a court-mandated payment plan that sets up affordable monthly payments to your creditors,

The decision to declare bankruptcy is not an easy one. Unfortunately, many bankruptcy attorneys recommend bankruptcy to just about anyone they consult with. All too often frightened consumers are advised to declare bankruptcy just to avoid a few debts. This is a mistake. Bankruptcy should truly be a last resort as the legal system meant it to be. A bankruptcy appears on your credit for ten years, and although lending criteria are slowly changing, many lenders will not even consider an applicant who has had a bankruptcy. What''s more, a Chapter 7 bankruptcy can cost you most of your property. Before making a decision to declare bankruptcy, estimate how bad your situation really is. On a piece of paper, make a list of all your assets and the approximate value they could be sold for. On the other side, add up all of your debts. If the debts exceed the assets by a large percentage, you may wish to consider bankruptcy. On the other hand, if it seems that your situation may improve (you may get a new job or a second income), or if your assets are of greater value or close in value to your debts, a different approach may be appropriate.

Negotiate with your creditors

Explain your situation and ask for more time to pay. If the creditors refuse and continue to threaten garnishment tell them such action would force you into bankruptcy. No creditor wants to hear the "B" word. Using bankruptcy as a threat is a very powerful negotiating tool, confronting creditors with a choice between getting a little each month or probably getting nothing through bankruptcy. Don''t try this tactic on secured creditors. They may decide to repossess your property to avoid having to go through court.

Contact Consumer Credit Counseling

As mentioned earlier in the book, Consumer Credit Counseling is a non-profit group funded by creditors to help consumers negotiate repayment plans. It is often able to negotiate payment arrangements better than the individual because of its constant contact with a variety of creditors. If you can''t negotiate a satisfactory arrangement, give these people a try. Remember, the fact that you are using credit counseling may appear on your credit record.

Consider Chapter 13 bankruptcy

This kind of filing allows you to repay your debts in a court-mandated fashion and will appear on your credit record for only seven years, If negotiations fail or there simply isn''t enough money to make ends meet Chapter 7 bankruptcy may be your only option. Bankruptcy does not necessarily discharge all debts. If your debts are exempt from bankruptcy, filing will do very little to improve your situation. If a co-signer was used, the debt would then be owed by the co-signer, unless that person also declared bankruptcy. In community property states a spouse''s assets and debts would also be included in the bankruptcy, assuming they are community property. Consider all very carefully before deciding to file.

Non-Dischargable Debts - Bills You Have To Pay In Spite Of Bankruptcy

Certain kinds of debt cannot be automatically eliminated by bankruptcy filing. They must meet certain requirements before being eliminated by bankruptcy. If most of your debts are non-dischargeable, bankruptcy may not solve your financial dilemma. The only ways a non-dischargeable debt can be eliminated through bankruptcy are through an exception being granted by the court, a certain period of time transpiring since the debt was due, or because the creditor does not object to the discharging of the debt. Certain debts can only be discharged by an exception. They are:

Recent Student loans

This applies to student loans that became due within the last five years. Any extension of repayment would be added to this time period. Some courts, furthermore, will only discharge payments that are more than five years past due. So if the student loan was due seven years ago and the payments were originally to be made over a five-year period, you would still be responsible for the last three years of payments. The court may also grant an exception to a student loan if it would produce an "undue hardship" for you to pay it. This is rarely granted.

Taxes

Federal, state, and local taxes are not dischargeable for at least three years after you file your tax return. Even if you''ve been tied up in tax court for more than three years, any tax assessed within 240 days of filing for bankruptcy is non-dischargeable. Property taxes are dischargeable if they are over one year late, but the lien against your property is not. The bottom fine is that you can count on the government collecting its tax money eventually.

Child Support and alimony

These can only be discharged in special circumstances, which generally include agreements that have not been court-ordered. If one spouse has agreed to assume more than half of marital debts in exchange for lower support payments, the court may not discharge all debts held by the spouse for bankruptcy. Consult an attorney if this situation applies.

Fines

Neither fines from a court, judge, or government agency nor surcharges, penalties, and restitution, as a general rule, can be discharged in a bankruptcy. The same is true of debts incurred as a result of damage or liability from driving while intoxicated. The debt incurred from intoxicated driving must be established in court and a judgment must be issued by a higher court. Small-claims, traffic, and municipal judgments for intoxicated driving are all dischargeable. Once again, consult an attorney.

Debts not discharged in a previous bankruptcy

If debts from a previous bankruptcy have been found non-dischargeable, they cannot be discharged in a later bankruptcy.

Debts not listed on your bankruptcy petition

If you do not include a debt on your petition, it will not be discharged. Many people filing bankruptcy keep one or more credit lines with small balances or no balance out of the bankruptcy proceeding to preserve part of their credit resources. Another strategy is to reaffirm debts on the condition that credit continues to be offered. The creditor, confronted with a choice between collecting nothing and maintaining your credit, will sometimes choose the latter. Be very careful when reaffirming debt. You are not obligated to and you should have a new written agreement spelling out all of the new conditions.

Other kinds of non-dischargeable debts can be discharged immediately if the creditor does not object If the creditor objects, these debts will be judged by the court to be either dischargeable or non-dischargeable. The creditor can ask that the debts not be discharged if they claim the following conditions existed:

The debt was acquired by Intentionally fraudulent behavior

Fraud in this case is any dishonest act used to obtain credit. Claiming to be someone you are not, or borrowing money when you have no means or intention of repaying it, would be clear-cut examples of fraud. Not disclosing certain relevant facts could also be construed as fraud. If you make a promise and intend to keep it and believe you will be able to keep it, that is not fraud. Creditors tend to be paranoid and believe everyone is defrauding them, so this excuse for non-discharge is often used by creditor''s attorneys.

Debts Incurred as a Result of False Written Statements

A blatantly false credit application would qualify. The inaccurate statement must be an important fact and one that the creditor relied on in order for the debt to be judged non-dischargeable. A misspelled name or minor error would not render a debt non-dischargeable. Drastically overstating income or misrepresent a job title would be considered fraudulent.

Fraudulent usage

If you charge "luxury goods or services" in an amount over $500 within 40 days before filing bankruptcy, the debt is likely to be deemed non-dischargeable. The same is true if cash advances are obtained fewer than twenty days before declaring bankruptcy. A lot of small charges, made to avoid pre-clearance, would also be considered fraudulent if you were over your credit limit or obviously unable to pay.

Debts resulting from illegal or malicious acts, embezzlement, larceny, or breach of fiduciary Responsibility

Any money owed because of illegal acts such as embezzlement (taking property left in your safekeeping), larceny (theft), or the failure to fulfill your duties as a trustee can be non-dischargeable. The court will usually de a definition of fiduciary responsibility.

Once you''ve examined your debts and determined what is dischargeable and what is not, you can determine whether bankruptcy would enhance your current financial situation. There are several other things you should know before you decide whether to file.

Exempt Assets

A common misconception about bankruptcy is that you lose everything you own to satisfy your debts. In fact, the court will allow you to keep many things essential to your well being, and perhaps even a little bit more. Although there is a federal exemption law, only in states and the District of Columbia allow you to use it These states let you choose between the state and federal exemption laws. The in states are:

Connecticut
Hawaii
Massachusetts
Michigan
Minnesota
New Jersey
New Mexico
Pennsylvania
Rhode Island
Texas
Washington
Wisconsin
Vermont

The other states require a person declaring bankruptcy to use state exemptions.

Here are some examples of things that may be exempt, depending on the state in which the petition is filed.

• Personal effects
• Furniture
• Cars (up to a certain amount of equity)
• Tools of a trade
• Equity m a residence (sometimes the entire residence)
• Clothes
• Household goods
• Books
• Jewelry

One very interesting exemption is the homestead exemption. When John Connally, the former governor of Texas, declared bankruptcy a few years ago, many people were surprised that he was allowed to keep his huge mansion, valued at several million dollars. Texas has a homestead exemption that allows anyone petitioning bankruptcy to keep up to one acre in an urban area or 100 acres in a rural area, regardless of value. The ex-governor may have had a very good attorney, but many other states also offer homestead exemptions.

One bankruptcy strategy is to sell non-exempt property before bankruptcy and convert it into exempt property. For example, a Texas resident might sell non-exempt assets and use the proceeds to pay off the home mortgage on her homesteaded property. You would almost certainly want to consult an attorney before attempting this kind of transfer of assets, however, since the court could very easily view such action as an abuse of the bankruptcy laws.

Even if a certain amount of equity is exempt, your creditors can often sell the asset to recover any excess equity you may have. If you own a car worth $10,000, for example, and you only owe $5,000 on it and your state exemption is $1,200, the creditor can sell the car and give you $1,200. Some states allow ''Wildcard" exemptions that can be used to cover the difference.

Knowing which debts are dischargeable and what the law allows a petitioner to keep, a rational decision can be made whether to file for bankruptcy. If you do choose to file, there are several ways of going about it-as well as several pitfalls to avoid.

Taking Action

When you''ve decided to take action you can begin the filing process. If creditors are knocking on the door and repossession, foreclosure, or garnishment is just around the comer, it may be wise to consider using an emergency filing to obtain an automatic stay. An automatic stay stops creditors from taking any further action until the case goes before a bankruptcy judge. Unlike a bankruptcy filing, which usually contains several pages of information an emergency filing is only one page long and contains a list of your creditors. The rest of the petition has to be filed within fourteen days or the case is dropped. The court will send notices of the pending bankruptcy to the creditors listed, who must cease all further collection action. If they do not cease, send them copies of the automatic stay and request that all further collection action cease. A creditor can ask that the automatic stay be lifted, allowing him to continue collection action. Only a landlord trying to evict you from a rented dwelling will usually prevail, unless there is a long-term lease involved. If you are renting on a long-term lease, which could be considered an asset, the landlord may have to wait for a formal @g in order to evict YOU.

Once the wolves are at bay, another decision will need to be made: whether to hire a bankruptcy attorney. Attorneys, as we all know, are expensive. In the case of a complicated bankruptcy, however, they can be invaluable. If you have quite a bit of property or valuables, if you are trying to move money from non-exempt to exempt assets, if your creditors try to make your debts non-dischargeable because of fraud, or if there are any other complications, you may wish to hire an experienced bankruptcy attorney. Shop around. Don''t be afraid to negotiate. Ask a lot of questions and talk to several attorneys before you make your decision.

If you have a very simple bankruptcy or can''t afford an attorney, invest $15 in a good do-it-yourself bankruptcy book. It will give in-depth information not covered in this chapter. Typing services am also available to type up bankruptcy forms. They are reasonably priced and, in the case of a very simple bankruptcy, can take the place of an attorney. If your case is complicated and you can''t afford an attorney, do your own research. Read a consumer bankruptcy manual first and then consult a good legal library. There are several legal guides devoted strictly to bankruptcy. Once you or your attorney have prepared your case, you''re ready for formal work.

The Filing Process

All the appropriate papers can be obtained from your local bankruptcy court. Consult the yellow pages under Government Services (usually in the beginning of the book) for an address and phone number. The court allows you fourteen days from the date of an emergency filing to complete the formal process. If Chapter 7 bankruptcy is being filed, you will need to send in the following forms after you have received them from the court:

• Statement of Financial Affairs.

• Schedule of Current Income and Current Expenditures.

• A schedule describing your debts.

• A schedule describing your property.

• A schedule listing exempt property.

• A summary of the above schedules.

• Statement of Intention in regard to your secured property and what you intend to do with it

• Statement of Executory Contracts describing contract that will need to be fulfilled, such as auto leases.

• Bankruptcy Petition cover sheet.

• Mailing addresses of all creditors.

• Any required local forms.

A fee will also be assessed, usually $90, due at the time of filing. The court will usually accept installments of a four-month period. An application for installments must accompany the petition.

After your petition is filed, a meeting of the creditors will be arranged. The court appoints a trustee to preside over the meeting and to be responsible for the liquidation of assets. With most smaller bankruptcies, only the person filing and the trustee will attend. The trustee, who is usually a local attorney, will ask several questions about the information on the bankruptcy documents. Call and ask the court clerk what papers you will need to bring (usually financial statements or sometimes even tax returns). If a lot of property is involved, especially if it is nonexempt, property, your creditors may show up to protest any exemptions. They may also attempt to grill you about your intent to pay the bill or about lying on your application. Answer truthfully and there shouldn''t be a problem.

If the creditors'' attorneys become abusive, demand a hearing before the bankruptcy judge before the proceeding goes any further. If the creditors object to any of your exemptions, they have 30 days after the creditor''s meeting to file an objection with the court. The court will schedule a hearing and you will be given the opportunity to respond, although you don''t have to. A creditor may also try to claim a debt as non-dischargeable because of fraudulent acts, a @ or malicious act, or embezzlement or theft. He can only accomplish this if he successfully raises the objection within sixty days of the creditors'' meeting. To defend yourself, you or your attorney will have to file a written response and be prepared to argue your case in court.

Once all the requirements have been met and your intentions have been made clear, the court can declare the bankruptcy discharged. No formal hearing will be held unless you have chosen to reaffirm your debt in which case the judge will want to be sure that you understand what you are doing. After this time, provided the creditors do not raise any objections, the dischargeable debts are erased.

Picking Up The Pieces

Bankruptcy was once the lowest disgrace that could befall someone. Today, however, it is commonplace. Corporations declare bankruptcy to get out of contracts or avoid legal judgments. Individuals rely on it to protect them from a society that extends credit too quickly.

Bankruptcy does not mean that you will automatically be denied all credit for ten years. In fact, many firms look at bankruptcy as a responsible way of discharging debts when there is no other way out. Creditors fear bankruptcy, but they also realize that if they lend to someone who has declared bankruptcy, they need not worry about another bankruptcy for seven more years (you can only file once every seven years). If you happen to have a good explanation for the bankruptcy, such as medical bills, divorce, or some other catastrophic event, a creditor may be willing to overlook it and extend credit. Ask potential creditors about their policy toward bankruptcies. Their responses may be surprising.

Darryl Power over 3 years in online marketing, 1 year in Pay-Per-Click advertising and 7 years of business management.

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10 Ways of Reducing the Risk of Identity Theft

Watch Out For Credit Repairs

How To Protect Yourself Against Credit Card Fraud

UPS Delivers the Goods, Your Identity

Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure

What Is A FICO Score?

Is There Any Way To Get Out Of Debt?

What Is A Chapter 13 Bankruptcy?

Improving Your Credit Report

Like It Or Not, You Have A Score To Settle! Part 1

How To Survive In A Plastic World, Qualifying For Credit Card

All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA

Understanding Your Rights Under The Equal Credit Opportunity Act

Credit Education

Top Ten Reasons People File for Bankruptcy

Bankruptcy, Is It A Way Out