Student Loans Can’t Be Swept Away Through BankruptcyWritten by Charles Essmeier
Bankruptcy is in news these days, as Congress has finally overhauled Federal bankruptcy law after years of talking about it. The credit card companies, rightly or wrongly, have been pressuring members of Congress to tighten bankruptcy statutes, saying that too many people were willfully spending money they couldn’t repay with intention of avoiding paying money back by filing for bankruptcy. That will soon change, and those with student loans may pay a heavy price.
Most everyone knows that consumers with problem debt who are unable to pay their debts may file for bankruptcy under Chapter 7 of Federal bankruptcy code. This allows for court to basically wipe away all of debtor’s bills and allows them to start over. It’s not entirely free; bankruptcy filing stays on debtor’s credit report for next ten years and may affect their ability to buy a home, borrow money or obtain employment. What many people fail to realize is that while installment loan debt or credit card debt can be wiped out through filing for bankruptcy, most student loans cannot. In fact, thanks
| | SHOE STRING BUDGET PART ONE--FIXED EXPENSESWritten by Wendy Jackson
It’s that time of month, you are out of money but bills are still arriving in mail box. Getting control over your fixed expense is more than just writing down a list of what bills need to be paid and when. . First, list all fixed expenses, such as mortgage, home insurance, car payment, car insurance, phone, cable, credit cards, health insurance, local newspaper, etc. If money is going out each month, write it down. No amount is too small to ignore. Take a good hard look at figures. Do you really need extra movie channel, or high interest credit card? You won’t miss movie channel. Take your family to library and explore numerous current movies that are available to rent free of charge. Read magazines there, and cancel your magazine subscriptions. Transfer balances on high interest credit cards to other companies that have lower rates. Check out different long distance providers for lower rates if you dial long distance, better yet, e-mail and write letters! Get quotes from insurance companies, and switch providers for your car and home insurance, if needed. Sometimes just raising your deductible will decrease monthly payment.
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