A prepaid credit card is somewhat similar to that of a debit card. To use these cards the card user is required to deposit the amount prior using the card. There is no credit offered by the card issuer. You being card holder spend money that has been "stored" via a prior deposit by you or your partner. Perhaps, it carries a credit-card brand and can be used in similar ways just like a credit card.
Important transactions can be conveniently carried out without the fear of crossing your credit limit. There is no such credit limit set on these debit cards. You can spend as much as you want and have in your account. You can execute important financial transactions as and when you want. With these cards one can purchase grocery, pay off bills, consolidate debts, plan holidays, pay off other important bills, child's school fee and many other such obligations can be effectively carried out.
After purchasing the card, the you are suppose to load the account with any amount of money, usually up to the preset card limit only then the card can be used to do purchasing. Some companies offer prepaid cards to minors (above 13) since there is no lending of money involved. On these cards you are not charged with any interest but are often charged a purchasing fee along with monthly fees after an arbitrary time period. Many other fees are also usually charged on a prepaid card.
You can also get some good offers as introductory offers on these cards. Some companies offer cash back on your purchase and other such offers. This may make your credit buying decision totally worth it.
Anyone can apply for these cards and sort their life to a great extent. These cards can be applied online. But before applying check various terms and conditions and charges or additional fee on these cards in order to avoid any incongruity.
Prepaid credit cards are a handy alternative to your financial needs. You can carry out direct transactions through these small cards that can easily fit in your pocket!
Wednesday, July 1, 2009
Chapter 7 Bankruptcy Process and Procedure: A Synopsis
There is more than a grain of truth in the expression "fear of the unknown". And where bankruptcy is concerned, a little trepidation is certainly understandable; after all, how many people are well versed with the procedures involved in a bankruptcy filing? Apart from bankruptcy attorneys, regular practitioners, and the like, probably very few would be truly familiar with those procedures. So if you're considering the possibility of bankruptcy, but the whole notion is a little bit frightening, perhaps the information that follows might help dispel some of that fear...
Prior to Filing
Prior to filing bankruptcy, a debtor is required to take a credit counseling class by an approved credit counseling provider. This class does not require personal attendance - it can be completed online or even over the phone. Numbers vary, but the typical bankruptcy district will have a list of between 12 to 15 court-approved providers. Their fees vary only slightly, usually ranging from $30 to $50. The fee can be waived with a showing of hardship, e.g. by providing the counseling agency with an SSA disability determination letter.
Filing the Petition
The certificate proving completion of this credit counseling class is then attached to and filed along with your 'petition', which is the official document that contains all necessary information on your debts, assets, expenses, and income. The bankruptcy attorney will complete this petition for you, using information provided by you including, for example, such documents as appraisals, paystubs, 1040's, and W-2's. The bankruptcy attorney will also need mortgage, car loan, and credit card statements, along with any collection letters and/or lawsuits pertaining to those accounts. If you've lost or misplaced those documents, some bankruptcy attorneys offer, for a small incremental fee, a service whereby they directly access your credit history so as to obtain the necessary information. Because petition preparation and filing are done electronically, they can be done very quickly - literally within a couple days if necessary - a fact worth noting if you're under a time crunch with, for example, an imminent sheriff sale or other legal proceeding.
After Filing
Shortly after your petition is filed, a case trustee is assigned. This trustee is simply the person appointed by the court to oversee your case. Also within a few days after the petition is filed, a "creditors' meeting" is scheduled. The date for this meeting is typically about a month after the petition is filed. At this meeting, the trustee reviews your case and asks questions regarding your petition. These sessions are usually quite brief, often no more than 5-10 minutes if your petition is in order and your case involves no unusual complications. Your attorney will be present at this meeting to assist you in answering the questions and providing the requested information.
Within 45 days after that creditors' meeting, you will need to do a second credit counseling session (called a "pre-discharge financial management course") to qualify for your discharge. Just like the first one (that is, the "pre-filing" class that must be done before filing), it can be completed online or over the phone. The fee is again $30 to $50 per household.
About 3 months after the creditors' meeting - sometimes a bit sooner if the case involves no complications, you will receive your official discharge notice in the mail from the Bankruptcy Court. That's about 4 months altogether from the time your petition is filed until your case is closed and your debts are officially discharged.
Summary
Most cases do indeed follow the general outline described above, so long as your petition is accurate, in order, and within the statutory limits of asset and income levels so as to qualify for a Chapter 7 discharge. To be sure that this is so for your particular case, you'll want to have an experienced bankruptcy attorney help you through the process, and to answer any other questions you might have.
Prior to Filing
Prior to filing bankruptcy, a debtor is required to take a credit counseling class by an approved credit counseling provider. This class does not require personal attendance - it can be completed online or even over the phone. Numbers vary, but the typical bankruptcy district will have a list of between 12 to 15 court-approved providers. Their fees vary only slightly, usually ranging from $30 to $50. The fee can be waived with a showing of hardship, e.g. by providing the counseling agency with an SSA disability determination letter.
Filing the Petition
The certificate proving completion of this credit counseling class is then attached to and filed along with your 'petition', which is the official document that contains all necessary information on your debts, assets, expenses, and income. The bankruptcy attorney will complete this petition for you, using information provided by you including, for example, such documents as appraisals, paystubs, 1040's, and W-2's. The bankruptcy attorney will also need mortgage, car loan, and credit card statements, along with any collection letters and/or lawsuits pertaining to those accounts. If you've lost or misplaced those documents, some bankruptcy attorneys offer, for a small incremental fee, a service whereby they directly access your credit history so as to obtain the necessary information. Because petition preparation and filing are done electronically, they can be done very quickly - literally within a couple days if necessary - a fact worth noting if you're under a time crunch with, for example, an imminent sheriff sale or other legal proceeding.
After Filing
Shortly after your petition is filed, a case trustee is assigned. This trustee is simply the person appointed by the court to oversee your case. Also within a few days after the petition is filed, a "creditors' meeting" is scheduled. The date for this meeting is typically about a month after the petition is filed. At this meeting, the trustee reviews your case and asks questions regarding your petition. These sessions are usually quite brief, often no more than 5-10 minutes if your petition is in order and your case involves no unusual complications. Your attorney will be present at this meeting to assist you in answering the questions and providing the requested information.
Within 45 days after that creditors' meeting, you will need to do a second credit counseling session (called a "pre-discharge financial management course") to qualify for your discharge. Just like the first one (that is, the "pre-filing" class that must be done before filing), it can be completed online or over the phone. The fee is again $30 to $50 per household.
About 3 months after the creditors' meeting - sometimes a bit sooner if the case involves no complications, you will receive your official discharge notice in the mail from the Bankruptcy Court. That's about 4 months altogether from the time your petition is filed until your case is closed and your debts are officially discharged.
Summary
Most cases do indeed follow the general outline described above, so long as your petition is accurate, in order, and within the statutory limits of asset and income levels so as to qualify for a Chapter 7 discharge. To be sure that this is so for your particular case, you'll want to have an experienced bankruptcy attorney help you through the process, and to answer any other questions you might have.
4 Steps to Repairing Your Credit After Bankruptcy
Bankruptcy can leave an undeniable mark on your personal credit history for years into the future - often as long as a decade. Bankruptcy boldly says to your creditors that you are more than willing to walk away from the debts that you owe, leaving them stuck "holding the bag". Contrary to bankruptcy myth, however, those who have filed for bankruptcy protection can rebuild their credit, often in as few as two years following the discharge of their debts. Let's look at some of the fastest ways to rebuild your FICO credit score and your borrowing reputation in the weeks and months following the end of your bankruptcy.
Bankruptcy Credit Repair Tip #1: Check Your Credit Report
During the first few weeks following the discharge of your bankruptcy, the lenders and creditors listed in your bankruptcy will notify the major credit reporting bureaus (Experian, Equifax, and Trans Union)that your debt with them has been discharged. It is important that you pull your own credit report with all three of the bureaus to determine that this all-important notation has been made. You are entitled to one free copy of your credit report with all of the bureaus one time each year - although there is usually a charge for viewing your score. Dispute any accounts that don't show this notation to make sure that your bankruptcy gives you a clean slate. Bankruptcy Credit Repair Tip #2: Establish Bank Accounts If you haven't already, now is the time to establish both a checking account and a savings account. Although neither will help your credit score, it does make you appear to be a more responsible borrower to have these accounts, and the savings account will be useful in helping you reach savings goals that should be set following bankruptcy.
Bankruptcy Credit Repair Tip #3: Establish a Credit Card Account
One of the most vital steps to rebuilding your post-bankruptcy credit file is to open one or more secured credit card accounts. A secured credit card is simply a credit card that requires you to deposit money into an account in an amount equal to your credit line in order to receive "credit". These types of cards feature monthly or quarterly reporting to the major bureaus and can really help to rebuild your file fast. Be sure to use your secured post-bankruptcy card with caution, however, because you really cannot afford to have any late payment notations on top of your bankruptcy. Run a 30% balance and make timely payments - this is one of the fastest ways to add points.
Bankruptcy Credit Repair Tip #4: Work with a Credit Repair Service
A great option that many borrowers choose to take advantage of post-bankruptcy is to work with a credit repair service. Oftentimes, credit repair services can help a borrower better understand the problems that those who are fresh out of bankruptcy face and how to work through their financial situation to come out on top.
Bankruptcy Credit Repair Tip #1: Check Your Credit Report
During the first few weeks following the discharge of your bankruptcy, the lenders and creditors listed in your bankruptcy will notify the major credit reporting bureaus (Experian, Equifax, and Trans Union)that your debt with them has been discharged. It is important that you pull your own credit report with all three of the bureaus to determine that this all-important notation has been made. You are entitled to one free copy of your credit report with all of the bureaus one time each year - although there is usually a charge for viewing your score. Dispute any accounts that don't show this notation to make sure that your bankruptcy gives you a clean slate. Bankruptcy Credit Repair Tip #2: Establish Bank Accounts If you haven't already, now is the time to establish both a checking account and a savings account. Although neither will help your credit score, it does make you appear to be a more responsible borrower to have these accounts, and the savings account will be useful in helping you reach savings goals that should be set following bankruptcy.
Bankruptcy Credit Repair Tip #3: Establish a Credit Card Account
One of the most vital steps to rebuilding your post-bankruptcy credit file is to open one or more secured credit card accounts. A secured credit card is simply a credit card that requires you to deposit money into an account in an amount equal to your credit line in order to receive "credit". These types of cards feature monthly or quarterly reporting to the major bureaus and can really help to rebuild your file fast. Be sure to use your secured post-bankruptcy card with caution, however, because you really cannot afford to have any late payment notations on top of your bankruptcy. Run a 30% balance and make timely payments - this is one of the fastest ways to add points.
Bankruptcy Credit Repair Tip #4: Work with a Credit Repair Service
A great option that many borrowers choose to take advantage of post-bankruptcy is to work with a credit repair service. Oftentimes, credit repair services can help a borrower better understand the problems that those who are fresh out of bankruptcy face and how to work through their financial situation to come out on top.
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