Debt problems? Learn the Art of Frugality

August 15, 2008 · Filed Under Budget, Debt · 1 Comment

debt Everyone needs to have a perfect balance on their life, especially when it comes to finance. If you overspend your hard earned dollars, you will fall into a financial trap. You will feel the need of a debt consolidation loan to take care of your existing debts. Be frugal and it will keep you in control. You should not become a miser in this process.

Impulsive action is very important. You can’t get everything in life otherwise you would not come here and read different articles on debt consolidation. Different credit card companies will send their offers in your mailbox. Don’t over-extend yourself and run your credit card balance. You will fall into a debt trap.

Stick to a strict financial budget when you are taking care of your existing debts. Analyze your income and expenses and find out how much you are able to save at the end of the month. If you keep a track of your finance properly, you will be able to project your future expenses. Put maximum amount of your savings towards repaying your existing debts and keep a certain amount aside for emergencies.

Once you have committed towards a frugal life and created a perfect budget, you need to be disciplined and stick to your plans. Allow yourself little rewards along the way so that you enjoy your path towards being debt free. You didn’t fall in debts overnight. It took you some time to see yourself in a situation like this. Therefore, repairing your existing situation is also going to take some time. Be patient and stick to your plans towards debt consolidation. You will enjoy the walk and being debt free.

Tags: Budget, Debt

Debts discharged in bankruptcy

June 20, 2008 · Filed Under Bankrutpcy, Debt · Comment

The word bankruptcy discharge of debts means legal eradication of a debt. When a debt is discharged under bankruptcy, it can no longer be enforced against the debtor, however if any liens are put against the debtor, those debts will still survive in the bankruptcy filing process. If you are overwhelmed by your

existing debts, you can get your financial liabilities erased or completely wiped off. However, discharge of a debt is allowed for certain debtors and for certain cases. For example, non-individual debtors cannot get their debts discharged in chapter 7 bankruptcy. If a partnership or a corporate debtor is liquidating under chapter 11, and the business is stopped upon completion of the plan, the debtor cannot receive a discharge.

People who have committed fraud against the court by lying or by deceitful methods cannot get their debts discharged and will remain liable for pre-petition debts.

Certain kinds of debts are not discharged under chapter 7 bankruptcy.

These are:

1. Debts resulting from fraud, misuse of funds, embezzlement, or larceny

2. Debts arising out of false pretenses, including bogus representation, fraud or by presenting false financial statements.

3. Certain kind of tax debts

4. Debts resulting from the purchase of luxury merchandise or cash advances.

5. A debt resulted due to negligence of obligations to list in the bankruptcy schedules.

6. Alimony or child support, or debts resulting out of a divorce or separation

7. Student loans

8. Debts resulting from willful and malicious injury.

Debts that can be discharged under chapter 7 bankruptcy filing are as follows:

1. Auto accident claims