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Chapter 7 Bankruptcy: Are You Eligible?

Chapter 7 Bankruptcy

In your journey toward financial clarity, there will come a time when you will need to take an honest look at your debt. If you’re lucky, you might be in a position to pay off your debt and improve your financial picture. However, if your debts are far greater than your income, or if you have had a series of misfortunes that have left you financially bereft, you might have no option but to file Chapter 7 Bankruptcy. What is Chapter 7 Bankruptcy? Before we talk about what Chapter 7 is, we should discuss what it is not: Chapter 7 bankruptcy is not a way for people to shirk their responsibilities or defraud their creditors. It is a way for honest people, who have fallen on hard times financially, to eliminate their debts and start over with a clean slate. Because it is designed to forgive honest debt, there are several criteria you must meet to be eligible to file. Chapter 7 Bankruptcy Criteria Because Chapter 7 is reserved for those who truly cannot pay their bills, there are several criteria that you must meet before you can file. The biggest criterion is the chapter 7 means test. The Means ...

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Paying Off Debt Is Easy

why it's hard to pay off debt

Paying off debt is easy. In fact, it’s one of the easiest things on the planet, at least conceptually. Just like with losing weight, saving for retirement, or making sure your mortgage doesn’t leave you house poor, paying off debt is a matter of numbers. Anyone with elementary math skills should have the ability to stay debt free. If paying off what we owe is so easy, why on earth are so many people drowning in debt? The Easy Part of Paying Off Debt If you know how much you owe and how much you make, plus all your monthly expenses, all you have to do is plug your numbers plus any applicable interest rate into a debt payoff calculator. That will tell you how long it will take to pay off debt. You can even play around with different payments until you find the term you want. Easy as pie! The Parts of Getting Out of Debt That Aren’t So Easy It’s Hard To Admit You’re Wrong I think Jim and I both wanted to be out of debt long before we made any effort to get there. You see, before we had any hope of being out of ...

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You Can’t Pay Off Debt With Excuses

excuses people use to not pay off debt

If you have a blog, does it seem that all big things seem to happen when you’re out of town? I feel like that happens to me anyway. While I was in Kentucky last week visiting family, an interview I did with Business Insider got picked up by Yahoo Finance and traffic was off the charts.  The interview was about paying off our credit card debt, and I knew there was potential for some blow back, but you really can’t turn down that sort of exposure if you are trying to grow an online business, so I accepted the invitation without hesitation. After the interview, I wondered if this might be my first real opportunity to meet some of the trolls that many of my online friends have already encountered, and boy was I ever introduced last week. You can read the comments here if you’d like, but the majority were not kind. Why on earth would anyone hate me for paying off debt? Hating me gives people a great reason not to pay off their own debts. You can’t ever pay off debt with excuses. I Take Full Responsibility For My Debts Many of the comments were along the ...

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The Six Biggest Lessons I Learned While Paying Off My Debt

Paying off debt lessons

This is a post from Richard at Frugality Magazine. Enjoy! Just before Christmas last year I reached the point of having paid off all my consumer debt – a situation that seemed insurmountable just a few short years before. When I finally accepted by debt problem – something that took far longer than it should have done – and decided I needed to shift the weight of growing interest and spending every available penny on repayments I examined every available option. What about debt consolidation? Or an IVA? Or even bankruptcy? I just couldn’t see a way that I was going to pay off the mountain of money that I owed while keeping up with even my most basic of living expenses. But you know what? After some serious consideration I opted to avoid all these potential “short cuts”. I just decided to knuckle down, become more frugal, cut my living expenses and pile the extra cash into my debt. In other words I did it the plain old boring way. The *reason* was simple – my debt was painful but I wanted to fully meet all the agreements I’d made with my creditors (a moral argument) and I also ...

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“Smart” Ideas That Can Keep You From Paying Off Debt

keeping you in debt

It’s hard to know when to spend money in the midst of paying off debt. You do have to buy necessities, and sometimes you need a little splurge to keep you motivated. In this world of uber-consumerism, there is always someone who can convince you that just about anything you want to buy  is a good idea. Don’t detour from your debt repayment plan with one of these three seemingly “smart” ways to spend money. Sales Nothing can sabotage your debt repayment plan like sales. I bet most of us have had this experience, either in stores or online. You see some sort of sign or banner ad offering x% off something, say it’s 25% off shoes. You think to yourself, “Hmm, I wear shoes. Maybe I’ll just take a look. I’m certainly not buying anything.” The next thing you know, you have three new pairs of shoes. One of them is kind of a weird color, but it was a brand you love and came with an extra discount. Twelve months later, you sell that pair of shoes on Ebay for 1/10 of what you paid for it. It really wasn’t your color. As we were racking up credit ...

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