Mind Box Magazine

A budget is more than just a set of numbers in and another set of numbers out. It is if you treat it the right way, your roadmap to financial freedom and independence in a way that nothing else compares to. One of the most important things you can ever do is sit down with all your figures and prepare a watertight personal budget for your immediate circumstances and also your future.

Knowing where to start is often a daunting matter, especially if you are already in debt up to your eyeballs and can’t see the forest for the trees. Don’t let yourself succumb to that feeling of worthlessness. No matter what situation you are in or are facing, a personal budget is one way to take a firm hold of your finances and to deal with whatever issue you may be facing.

One important aspect of any budget is the level of income versus the level of expenses, and although I understand that many people have credit cards to deal with urgent essential costs, most people would be far better off without the cards, and visiting a lender offering pay day loans instead, when the need arises. Credit cards and lines of credit are by far the most costly of all debt that we as individuals incur. Sure the car and the house may be larger debts but the cost of that debt is far less than the cost of inefficiently operating a credit card.

We have been lulled into this false sense of security with credit cards, and out of that has evolved a generation of people who believe that a plastic credit card is an essential part of everyday life. In fact at one time not so long ago, it was not fashionable not to have a credit card. All of these people who have them have been manipulated by the banks and lending institutions that the credit card is the saviour of all their problems, and most have believed that. If you look at the statistics of how many people owe, and how much is owed on credit card debt, you would easily see that most countries would be bankrupt if everybody in debt decided not to pay. That is a very worrying concern.

So for me, the first piece of advice to those who are establishing a personal budget of their own is, “do away with the credit card“  if you can. If you have a reasonable income and few creditors, a credit card is not your best friend, but very well could be your worst enemy. By continuing to use a credit card you are simply saying “I want the things I can’t afford, and I am happy to pay someone a lot of money for the privilege of having them now”, and to me that is ridiculous. Credit cards will ruin even the best personal budgets, unless you are able to strictly monitor and use the card according to the terms of the lender.

Bankruptcy is a procedure that is designed to relieve debt to consumers who have fallen on hard financial times and cannot afford to pay their existing debts.

While there are many types of bankruptcy out there, the most commonplace are chapter 7 bankruptcies and chapter 13 bankruptcies of the bankruptcy code.

Chapter 7 is the most common for the individual. It is the complete erasing of qualifying debt. The debtor is then released from all repayment obligations. But chapter 7 bankruptcies are not to be taken lightly. Read the rest of this entry »

When individuals or businesses cannot meet with their financial obligations, many make the assumption that the only solution is bankruptcy. That is not always the case though.

If the right steps are taken from the beginning, you can keep yourself and your family out of financial trouble and away from bankruptcy.

First off, start by educating your children. Many of us growing up weren’t presented with the tools and knowledge to establish and maintain good credit and keep away from the scare of bankruptcy. Read the rest of this entry »

With the new law passed in 2005 in regards to the filing of chapter 7 bankruptcy, it became law that anyone filing must first get pre-bankruptcy debt counseling.

The debtor must get counseling and certification from a non-profit credit-counseling agency before the forms can be filed for your bankruptcy.

This usually entails one or more counseling sessions and when completed, certification so you can proceed with the bankruptcy filing. Read the rest of this entry »

People considering bankruptcy have many questions regarding how future credit will be affected. Some think that it will be 10 years before they can get credit again, or that they will never get a credit card after their bankruptcy.

Common questions debtors have are usually about keeping current credit cards, establishing new credit and buying a home.

If money is owed on a current credit card, then it must be listed in your bankruptcy forms as a debt. These forms are filed under penalty of perjury and if fraud is detected, your bankruptcy case can be discharged. Read the rest of this entry »

While filing for bankruptcy, there are several codes, which an individual can file under. One such chapter is 13, which allows the debtor to keep property and pay the debt off over time.

The debt is usually paid over a three to five year period.  This chapter is usually chosen by those who have a regular income and who do not wish to deal with the new laws of chapter 7 bankruptcy codes.

Also known as the wage earners plan, chapter 13 bankruptcies enable debtors to pay off part of the debt they have incurred. Read the rest of this entry »

With so many people in society today finding themselves in financial trouble more often, the rate of bankruptcy has been on the rise.

The main purpose of bankruptcy is to give honest debtors a fresh start, clearing most debts and discharging debtors from legal obligations and providing the courts with non-exempt assets to be distributed among the creditors.

Originally a bankruptcy case is started with the filing of a petition. This petition declares the debtors financial information and states his intent to declare bankruptcy. Read the rest of this entry »

In 2005 the U.S. was implemented with new bankruptcy laws that passed congress. Before that time, filing for chapter 7 bankruptcies was an easy way out of financial obligations.

Many people spent years being careless with their credit and debts because it could be fixed with a quick filing for bankruptcy.

Now that the law has changed, there are more restrictions for filing a chapter 7. Before the 2005 revision, filers could choose which code they wanted to file under. Income did not matter. Read the rest of this entry »

If you are planning to file for bankruptcy then you will indeed be making a trip to court. The U.S. Bankruptcy court is a federal court and deals with all aspects of bankruptcy law. Each of the 94 judicial districts handles bankruptcy matters.

Each bankruptcy court houses a bankruptcy judge who is appointed to 14 years by the U.S. court of appeals. Though rare on occasion, regular district courts can hear and try bankruptcy cases on the courts discression.

Your first visit to court will most likely be brief. You will not be seeing a judge on your first visit, but instead a trustee of the court who will ask you questions regarding you financial status and history. Read the rest of this entry »

When you’re in a financial bind, bankruptcy is not the only way out. There are many alternatives to bankruptcy if you are willing to put out the time and energy. It could save you much unnecessary hassle.

Bankruptcy is a difficult decision to make so it is best if there is another solution out there for you.

Begin by calling your creditors. Most are willing to work with you if you explain to them your situation. Tell them you are considering bankruptcy. Read the rest of this entry »