Besides regular bankruptcy laws, there's also a little-known and little-used method of getting reorganized with your debt, particularly when you've got a steady job and just need more time to straighten your indebtedness out. This is wage-earner's provisions of Chapter XIII of Federal Bankruptcy laws.

Basically, these provisions allow you to make new arrangements with your creditors and pay off all your debts over a new 3-year period of time. When you filed for indebtedness relief under provisions of this law, nothing is recorded permanently on your credit record. You get to keep all your assets, but you must pay off all your debts. But, so long as Court grants you relief under these provisions, and you pay your creditors according to repayment schedule agreed upon by Court, your creditors cannot bother you. Even if they have begun a suit against you, once Court has given you relief, they cannot touch you! Once you've filed under these provisions, your creditors are immediately restricted from even contacting you, and get only what referee or trustee doles out to them.

Often times, if a creditor threatens to sue you, most effective thing you can do is to tell him frankly that if he sues you, you'll have no other alternative except to file bankruptcy papers. In many instances, this will cause him to take a second look and to do whatever he can to assist you in paying him money you owe, but over a longer period of time, and at smaller monthly payments. The absolute bottom line is that your creditors know only too well that if you do file for bankruptcy, their chances of receiving even half of what you owe is practically nil. Thus, it's in their best interest to do everything they can to help you to continue making payments on amount you owe, regardless of how small those payments may be.

When a creditor does sue you, and gets a judgement against you, he can then get a court order directing sheriff to seize your personal property and sell it, with all monies realized going to creditor to satisfy your debt. When they see this about to happen, many people connive to make themselves "judgement proof." In other words, they hide their assets or move them out-of-state before sheriff or marshall arrives. This is illegal, but is done as often as not.

Many creditors will attempt to "garnish" your wages. This is done by getting a court order directing your employer to set aside part of your wages or salary every pay period and turn it over to him. First, of course, he has to find out where you work; and even then, in most states, there are limits set relative to how much a creditor can garnish your wages.

If you have no job, and no visible assets, or you live in a state where your wages cannot be garnished, your creditors actually have very few ways of ever collecting from you.

Many techniques used by creditors and collection agencies are illegal. A creditor or agency can write letters to you; call you once a day in quest of a payment; and even knock on your door to ask about a payment. but he is forbidden by law to harass you or invade your privacy, or use deceptive means to get you to pay your bills. He cannot use foul and abusive language over telephone, tell anyone other than you reason for his phone call, inconvenience you or in any way threaten your job or your reputation in neighborhood where you live.

Still, best idea for reorganization and settlement of your debts when you find yourself in an untenable position, is in-person visits and explanations of your situation with your creditors, and a desire to explore other possible ways of mutual satisfaction without involving collection agencies or bankruptcy. Give it a try - it's a lot easier than most people realize.

MORE HOT TIPS ON HOW YOU CAN STACK THE ODDS IN YOUR FAVOR

1) If you don't have a telephone get one installed. The alternative is to make arrangement with telephone company and a friend or relative, to have your name listed with their phone.

2) If you have more than one job, list one that provides you with greatest income.

3) Add your income from all sources and place total in your gross income listing. Be prepared to submit a supplement to your application if they want to verify your income with your employer.

4) Many banks will have a list of "good" and "bad" reasons for borrowing money. Unless you are applying for a secured loan, you don't have to spend money for reason specified. Good reasons include home improvement, education, loan to establish credit, medical treatment for you or your family, and secured loans for a home, car, boat, and other properties.

"Bad" reasons include loans that create another obligation such as that created when you borrow money for a down payment and then have two payments to make; money to pay fine or penalty; money to consolidate debts, unless you are doing it to get a lower interest rates; an unnecessary luxury item; money to finance politics; and money that you loan to someone else. Use a little common sense in determining what type of loan a creditor may consider bad.

5) Banks use dependent figures to determine what your living costs are. If you have more than two dependents you should indicate how they earn their own way or supporting.

6) If you don't own your own home, counteract this by showing how stable you are. For example, even though you have only rented in a new location for a relatively short time, you lived at your last residence for many years. You moved to improve yourself in some way.

7) Even job changes can be counteracted if each change increased your salary and improved your position.

8) Don't ever let a creditor guess as to whether or not you can afford extra obligation you are asking for. Make it obvious by amount of your income. If you have more income sources than just your salary, include those amounts.

ALWAYS BE PERSISTENT AND NEVER GIVE UP!

If you complete an application and are still rejected very first thing you should do is be persistent and never give up. There are many reasons why a person may be turned down for credit, but whatever reason, you have a legal right to ask creditor what their reason was.By knowing what some of main reasons are for denying credit you can put yourself in a position whereby you can make necessary adjustments and avoid negative effects in advance. If you are turned down, you can then of course concentrate on those points when you reapply.

When you are dealing with creditors you will know who is cooperative sort, and who is not. If an unsecured loan does not appear imminent, turn conversation to a secured loan. Then all you do is deposit an amount into savings account to serve as collateral for amount of credit you want to secure. In some cases creditor may take personal property as security. If you go to creditor and it's clear he has no imagination to deal, go to another who is willing.

CONSIDER ASKING SOMEONE YOU KNOW TO CO-SIGN

A co-signer is someone who generally has better credit than person he is co-signing for. He is also person a creditor will go after first in event you do not pay off your debt. Why? Because they know that co-signers don't want their credit ratings ruined and will quickly settle obligation.

If you are trying to establish or rebuild credit, co-signers can help you achieve that goal. Naturally you wouldn't need a co-signer every time you apply for credit. After paying off one obligation with a co-signer, it should be much easier to acquire more credit on your own.Co-signers are usually friends or relatives. When you find someone willing to help they should be offered some compensation agreeable to both of you. Your application for credit will be approved primarily on strength of your co-signer's credit.

HOW TO GET A VISA OR MASTERCARD

The tips and techniques described in this report are meant to increase odds for anyone who is absolutely certain they cannot get a Visa/Mastercard through normal channels. You should make every attempt to clean up your credit report by removing negative items and replacing them with positive items. If you have no credit at all, open an account at a local department store. After a few months apply for your bankcard. If you are rejected, find out why and correct problem. If that doesn't work, cultivate a relationship with your banker. Open other accounts that are easier to obtain. Increase your income. Buy a home. Make yourself a better credit risk on your credit report. Ask a friend or relative to co-sign. After paying off that debt, reapply on your own. Or, fastest and easiest way to open a Visa or Mastercard account in your own mane, is through a secured account.

SECURED CREDIT CARDS

Secured Visa and Mastercard bank cards are issued by savings and loan association throughout U.S. The lender will ask you to open a savings account. The funds placed into savings account are frozen as long as there is an outstanding balance on credit card. The savings account acts as security against non-payment of charges made against credit card. Then, in event a cardholder doesn't pay, funds from frozen account can be used to pay off debt. This method completely reduces any risk to lender.

Requirements are often lowered by lending institutions that have this program. So if you couldn't obtain a card through your regular bank, chances are you will receive one through a secured credit card program without a credit check.