Bankruptcy – Consumer Vs Non-Consumer Debt

There is still the belief among many that the 2005 amendments to the Bankruptcy Code make it more difficult for consumers to file for Chapter 7 bankruptcy protection.

It is important to note that the majority of the 2005 amendments apply to consumer debtors and consumer debt. The majority of the amendments do not apply to individuals with primarily non-consumer debt.

Although to some extent it may be true that the 2005 amendments make it more difficult for consumers to file for bankruptcy, you need to look deeper into the nature of your debts.

Means Test (prior to 2005 there was no means test): One of the major changes of the bankruptcy code for 2005 was the instituting of a means test. Simply put, a debtor or a debtors’ household earnings which are more than the average household in their respective geographical location, has to provide detailed financial information with respect to the six-month period immediately preceding the filing the bankruptcy petition. If they pass the means test, a debtor is eligible for Chapter 7. If you do not pass the means test, you are not eligible for Chapter 7 and other options must be evaluated.

Most people don’t realize that the means test only applies to individuals with primarily consumer debt.

What are consumer debts?

Consumer debts are debts that have been incurred by an individual primarily for a personal, family, or a household purpose (credit card charges at your electronic stores and clothing stores).

What are non-consumer debts?

Non-consumer debts are debts that are incurred with an eye towards profit and not primarily for personal, family or household purposes, such as individual debts incurred as a result of a business or investment properties. Other examples are: personal guarantees of business loans, lines of credit, etc. for your business.

Many courts have held that certain income taxes and medical debt also fall in this category of non-consumer debts. There was also a recent decision that non-dischargeable student debt should not be viewed as consumer debt given that the individual incurred the student loan debt with an eye towards profit (if the debtor became a dentist, he would be incurring the debt for a profit purpose notwithstanding the fact he did not complete his education).

Why is all of this important?

It is very important to have a qualified bankruptcy attorney evaluate your case and your specific debts. This is to ensure that the attorney has the correct information to make the determination of whether the new 2005 laws apply to your case or not. It may be that the means test does not apply to your case, thereby making it easier to qualify for a Chapter 7 bankruptcy.

How To Write A Good Consumer Electronics User Review

As an online writer, you are expected to be able to write articles on various topics including electronic product reviews. Thousands of consumer electronics are sold every day and product reviews help consumers find which product to purchase. Hence, positive responses from both experts and users help manufacturers increase their sales. Consumers want to get comprehensive information about the features, rating, price, and other things related to a particular product. Unfortunately, most reviews just don’t provide enough reliable information, especially if they are not written by experts. Here are some tips on how to write a good consumer electronics user review:

Be objective when reviewing a product. Many people give 1-star rating for certain items just because they have bad experience with the merchant who sells the products. For example, they say that the LCD television sold by a particular merchant is bad just because it takes 2 days for the merchant to reply their email. Remember that you are reviewing the product and not the vendor.

Be unbiased in your opinions. Nowadays, it is not unusual for people to blow things out of proportion to boost the popularity of the product or to attack the competitors. And since consumer electronics industry is a highly competitive industry, it is now wonder that some manufacturers even pay writers to create fake reviews about their products to increase their sales. Therefore, it would be great for you to write a product review based on your personal observation.

Write the specific things about the product. When writing a review about a particular digital camera, try to highlight the special features that the camera has to offer such as miniature effect, image stabilizer, high speed processor, etc. If the camera lacks contrast or optical zoom, you can write about this too. Avoid writing information that is too general, such as “an excellent camera with reasonable price.”

It would be great if you can make a comparison between one product and another product of the similar type. When writing a review about a smart phone, for example, you can compare 2 different brands or 2 different models of the same brand, based on your experience. You can talk about how the two smart phones fare in terms of operating system, design, entertainment features, internet capability, etc.

Keep your review short to attract reader’s attention. Short review that informs reader about the essential points of the product will get much attention from online readers.

Consumer Debt Management is a Must If You Have Account Balances

The Need for Debt Management

Consumer debt management for individuals and families has become more difficult yet needed more than ever by people dealing with the fallout from today’s economic crisis. Making matters worse, before the recession, consumer debt exploded in the last few years as consumers maxed out their credit and charge cards by going on a credit buying binge for cars, boats, recreational vehicles, vacations, dining out, clothing, home appliances, etc. Others are victims of unfortunate circumstances such as job loss, medical bills, or the loss of the family bread winner. Before a debt problem spins out of control there are self-installed strategies that can help. However, it will be impossible for some debt victims to pay their debt off without receiving help from a debt management professional.

When Consumer Debt Gets Unmanageable

Even though consumer debt has dramatically increased recently surprisingly there are still many people that don’t realize how bad their problem can become. If left to spin out of control credit card, charge card and other consumer debt can lead to bankruptcy! This can happen when credit purchases continue each month without the account balance getting paid off. Interest cost starts to pile on and the balance gets higher and higher with each new monthly statement. When adding interest costs to purchases that were financed on credit cards the total cost of these purchases can balloon to over twice the purchase price if not paid off within a few months of the credit transaction. If this pattern occurs with more than one credit or charge card soon paying off the debt starts to look very difficult if not impossible. If a payment gets missed or is paid late then penalty fees and penalty interest rates compound the problem by increasing balances even more. This kind for credit behavior can lead to a debt problem lasting for years. Financial stress can get very upsetting even unbearable as bills go unpaid and debt collection calls fill up the telephone message box. It can cause more than just financial pain – it can result in divorce or even severe stress related health problems.

Climbing Out

The first step to preventing debt problems is to not take credit purchases lightly rather to realize just how important consumer debt management is to financial health. There are behaviors that can change this downward debt spiral immediately. The first and most critical step to take is to STOP all credit purchases. Then throw away all offers for new credit cards except to take advantage of 0% balance transfer offers.

One strategy to get out of a credit card debt problem after credit purchases have been stopped is to transfer all credit card account balances to a 6 or 12 month 0% introductory interest rate credit card then pay the balance off within the introductory 0% interest rate period. Simply divide the transferred balance by the number of introductory months then pay this amount each month. The balance must be paid off by the end of the introductory period or finance charges may be applied retroactively.

Another effective strategy to pay debt is to work overtime or find a second job then make use of the extra cash to double or even triple monthly debt payments until all balances are paid off. If home equity exits a second mortgage loan is another way to pay off consumer debt.

Consumer Debt Reduction Done Professionally

Even with doing all or some of the self-help strategies described above some debtors find they can’t do it on their own and have to seek the help of consumer debt management programs. Debt management firms are in the business of developing consumer debt solutions. Consumer debt management when handled by a professional consists of consolidating a client’s unsecured debt into one low monthly payment. Often the firm can persuade creditors to substantially reduce interest rates and waive late penalty fees. The client’s debts are scheduled to be paid off over a three to five year period. There are programs available mostly through law firms that result in a write-off of a substantial portion of a client’s debt. Debt counseling is also available so that bad financial habits are broken and a realistic budget is adhered to.

Whether done professionally or by self help strategies consumer debt management is absolutely necessary if consumer items are going to be financed with credit cards and charge cards. Account balances must eventually be paid off and getting a handle on debt is much easier if done sooner rather than later.

Consumer Debt Help – Practical Solutions For Financial Debt Settlement

It’s not always easy to pay back the debt. There can be so many reasons behind this. Using credit cards carelessly and lavishly often make people vulnerable to debt trap.To avoid any sort of adverse impact of a debt, it is always advisable to the defaulters to pay back their liabilities in time to avoid multiplication of charges. One of the effective ways of debt settlement is the consolidation of liabilities. The defaulter can opt for a credit card with low interest rates, and transfer the balance to the particular card. By doing so, one can easily make monthly payments to pay off the debt.In order to deal with consumer debt, one should seek the aid of professionals as well who are efficient in providing advice to clear off the liabilities. One can search and collect information on such experienced professionals from internet to get rid of the debts. The assistance for debt settlement helps a consumer to eliminate his or her liabilities. The consumer debt tries to reduce the debt amount and thereby making it easy to pay.It requires lots of efforts to get rid of your debt. But don’t be disappointed, there are so many solutions to pay off the debt and get rid of it. Let’s discuss some of these solutions.
A good technique to solve the debt problem and get rescued from a debt is the consolidation of the debts. If you use a credit card, you can use this technique. Search out for a credit card that has the lowest rate and transfer the balance to that card only. Do remember that too much debt means a lower rating for your credit score.
If your debt amount is large and you can’t get hold on it, it’s better to consult a financial expert, counselors or may be even a lawyer. And also, a bit of research on internet can also help you a lot. Do keep in mind that an organization that charges fees for any advice or counseling doesn’t seem to be a genuine one. Such an organization may not guide you in a right direction to solve your debt related problems.
Debt settlement can also be a fine choice to eliminate debts. A negotiation between the borrower and the creditors can lower the interest rate and making it easy to repay the debt. In this case, a credit relief company can act as a third party and help in reducing the debt amount.

Consumer Debt Relief Options – Tips to Legally Eliminate Credit Card Debt in 2010

When you realize your incapability to meet your necessities with the amount of money you earn, you start borrowing from different sources. You need to meet your basic needs any how and your money is not sufficient for that. As a result you try to find various sources to borrow money to meet these needs. Consumer debt relief option can be considered in times of distress such as credit burdens.A credit card is a card with a credit limit used to purchase goods and services. You can also obtain cash advances on credit. Therefore if you are holding a credit card you need not carry money always. This is an advantage of this card. But it comes with disadvantages too.The main disadvantage is the high interest rates that the creditor charges. Sometimes it is so high that it goes beyond your capacity to pay it back. The interest rates increases day by day and your credit card debt burden increases. Maximum people today are suffering from this problem of high credit card debt burden. The harassing phone calls from the creditors disturb you mentally all the time. Your life becomes a mess. These things also affect your health a lot. So you should search for ways to get rid of this as soon as possible. There is consumer debt relief option to eradicate these problems.The growing incidents of debt issues, harassment and disturbances from creditors have forced people to search some way outs to this. There is consumer debt relief option which you can avail in order to get rid of this problem.Look through the processes of debt elimination, get more information about these and you can be familiar with the process of how to legally eliminate credit card debt. Settlement companies and debt consolidation companies are two popular ways to settle your debts. If you have debt of $10,000, you are eligible to bargain with the creditor to settle it out. You should prove yourself to be a weak one having no capacity to repay the loan amount. Try to be clear about the fact that your financial crisis is not permitting you to repay the due amount. The best you can do is going to some debt settlement company through some network which can help you effectively. This will help you to legally eliminate credit card debt in a fruitful manner.