Bankruptcy/Getting Out of Debt By Brandon Stressman Toren Sanchez Jay Carrick Jalen Zavala Christina Coyle

Signs of debt problems/overspending Using credit cards to pay for necessities when you have no cash. Borrowing money to pay for other debts. Needing a co-signer because you’re a high credit risk. Depending on parents and friends to bail you out. Only paying minimum payment on credit cards. Unsure how much you owe or what may be on your credit reports.

Bankruptcy Chapter 7- For individuals it is also called straight bankruptcy or liquidation. Chapter 11- occasionally used by individuals but is primarily used by large corporations. Chapter 12- a type of bankruptcy available for family farmers. Chapter 13- For individuals this bankruptcy lasts for the duration of a debt repayment plan, from three to five years.

Debt Collection Some Debt Collectors are debt buyers. These companies purchase debt at a fraction of its face value and then attempt to recover the full amount of the debt. Debt collectors include collection agencies or lawyers who collect debts as part of their business.

Debt Collectors allowed to do ●Any debt collector who contacts you claiming you owe payment on a debt is required by law to tell you certain information about the debt. ●Debt Collectors can conclude information such as the name of the creditor, the amount owed, and how you can dispute the debt or seek verification of the debt.

Debt Collectors NOT allowed to do Debt collectors may not harass, oppress, or abuse you or any third parties they contact. Debt collectors may not lie when they are trying to collect a debt. Give false credit information about you to anyone, including a credit reporting company Debt collectors may not engage in unfair practices when they try to collect a debt. Couple of Other things… They cannot contact you before 8:00a.m or after 9:00p.m unless you ask them to.

How To Avoid Bankruptcy Get Help From Family and Friends Sell Some of Your Assets Ask Creditors to Help You Avoid Bankruptcy Seek Consumer Credit Counseling Restructure your mortgage Make real sacrifices

Life events: How they affect your finances and credit Marriage: Pool money New responsibilities Divorce: Protect credit report Protect mail Closing joints/Paying off balances Buying a home: Builds equity/ Adds to net worth Mortgage debt on credit report Having a baby: Many expenses on credit Death of a spouse: Creditor cannot change the terms on the account Maintain some form of independent in your name Name change/ Joint Credit: ●Notify creditors ●Could lose your credit history ●Keep individual credit in your own names ●You are responsible for all of his or her bills as well as yours

Methods or Strategies to Pay Off Debt Pay more than the minimum Cash out your savings account Borrow Against your life insurance Friends and Family loan? Borrow from your 401K Last Resort: File Bankruptcy

After Debt… Close Accounts or Leave open with zero balance? Ask yourself what you are trying or wanting to accomplish. Do you want to manage your credit and want to get rid of the temptation of excess credit? Do you want to manage and have a better credit score? Keep In Mind... A big part of your score is the age of your accounts. Closing an old account can lower the average age of your accounts and, in turn, lower your credit score.

Financial/Credit Counseling What is Credit Counseling? Offering education to consumers about how to avoid incurring debts that cannot be repaid Where can you find a credit counselor? 1.Many universities 2.Military bases 3.Credit unions 4.Housing authorities 5.Branches of the U.S. Cooperative Extension Service operate nonprofit credit

Work Cited "5 Ways to Avoid Bankruptcy." MSNMoney. Web. 11 Apr "Consumer Information." Choosing a Credit Counselor. Web. 11 Apr "Credit Counseling." Wikipedia. Wikimedia Foundation, 04 Aug Web. 11 Apr "Six Ways to Avoid Bankruptcy." About.com Credit / Debt Management. Web. 11 Apr "Closing Paid-off Card May Hurt Credit Score." Is Closing Card worth Crimped Credit Score? N.p., n.d. Web. 14 Apr "Reader Q&A: Should I Close My Old Credit Card Account That Has a Zero Balance?" The Debt Movement. N.p., n.d. Web. 14 Apr