Bankruptcy and debt

Once your file bankruptcy it gets listed on your credit reports. Depending on the chapter under which you are going to file bankruptcy, it is going to stay on your credit report for 7-10 years. But, the main advantage due to which may prefer to file bankruptcy is that most of your debts get discharged with the filing.

There are mainly two chapters under which you as a common man are allowed to file bankruptcy. One is Chapter 7 and the other is Chapter 13 bankruptcy. Chapter 7 bankruptcy is going to stay on your credit report for 10 years. In this type, after you are done with the filing, the court appoints bankruptcy trustee. They check your assets and then arrange to sell off those or use those for the purpose of paying your creditors and lenders. In this type, you can have the choice of not including your mortgage in the bankruptcy.

On the other hand, chapter 13 bankruptcy is the one where none of your assets are taken away. You are simply required to go on making the payments against your debts as per the repayment plan designed by the bankruptcy court. This is going to help you save your assets. This is more of a reorganization plan designed against your debts.

But, the main disadvantage of the bankruptcy filings as has been said before too is that it hurts your credit. It drastically lowers your credit score by 200-350 points. The better your credit score before the filing, the more will be the hit. Moreover, it gets listed on your credit reports. Thus, what happens in that even after the bankruptcy discharge, for some years it becomes hard for you to get any form of new credit. You will be required to work really hard on your credit in order to improve it so as to be eligible for new credit.

Thus, it is better to try out the other debt relief options before filing bankruptcy. You need to understand what your debt situation is and take the right decision in order to pay off your debts.

“The bank says starting Friday the rate for one of the most popular types of loans for homebuyers will be 5.59 per cent, down 0.1 percentage points.

Many homebuyers are able to negotiate a rate lower than the posted rate at a bank…”

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http://money.ca.msn.com/savings-debt/yourmoney/bank-of-montreal-cuts-mortgage-rates

“The debt peddlers may claim debt is now the “new norm” but 58% of respondents feel uncomfortable about it and 33% are “outright embarrassed” by it. And so they should. When the same poll shows that 33% are losing sleep over their debts and 25% find it has triggered disagreements with their partners, then clearly something is amiss in DebtLand.

I know too many couples who started falling down the slippery slope of debt when two incomes shrank to one. Credit is no substitute for a second income and if the primary income also disappears, then the trouble really begins. It’s no picnic losing a home or filing for bankruptcy or a consumer proposal — especially if you were nearing retirement….”

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http://opinion.financialpost.com/2011/05/25/debt-may-no-longer-be-a-4-letter-word-but-not-worth-losing-sleep-over/

“As must be obvious to most financial advisors, Canadians are lousy savers. Four in 10 save nothing at all, while 61% of us save less than $100 a month, according to an Ipsos Reid survey released Tuesday by Toronto-Dominion Bank and ABC Life Literacy Canada. On average, Canadians put aside only $211 a month for long-term savings.

That seems pathetic but even that seemingly small amount works out to $2,532 a year. As a recent column showed…”

Read Full Article: http://www.financialpost.com/Canadians+falling+short+savings+front/4761344/story.html

“There's no reason you should pay retail, either. Sales plus coupons plus store-credit offers make it easy to get toiletries, baby items, vitamins, over-the-counter medications, cleaning supplies and even food for free.

Sound like a bother? It's not anymore. Deal bloggers and coupon sites do all the work for you. They highlight each week's best deals and tell you where to find coupons to match….”

Read Full Article: http://money.ca.msn.com/savings-debt/insight/shopping-pays-off-big-for-couponers

“An online survey completed for TD Canada Trust (TSX:TD) also found that 54 per cent of the 1,003 people who answered said it was a real struggle or impossible to save.

The report, released Wednesday, says that 38 per cent of respondents said they had no savings and 30 per cent said they didn't have enough money for their living expenses.

On the flip side, 30 per cent of the respondents said they had enough money saved to cover living expenses for at least four months….”

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http://ca.finance.yahoo.com/news/Survey-finds-nearly-one-third-capress-886125985.html?x=0#mwpphu-container

“Further underscoring the financial squeeze, one in four boomers still working say they'll never retire. That's about the same number as those who say they have no retirement savings.

The Associated Press-LifeGoesStrong.com poll comes as politicians face growing pressure to curb record federal deficits, and budget hawks of both parties have expressed a willingness to scale back Social Security, the government's biggest program.

The survey suggests how politically risky that would be: 64 per cent of boomers see Social Security as the keystone of their retirement earnings, far outpacing pensions, investments and other income…”

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http://money.ca.msn.com/savings-debt/yourmoney/article.aspx?cp-documentid=28259338

“If you’re looking at retirement 20, 30 or 40 years down the road, that’s very different than trying to build up a stash of cash to buy a house, put your kids through school, or go on a much longed-for family holiday…”

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http://www.moneysense.ca/2011/04/11/know-why-you%E2%80%99re-saving/

“How big a refund will you get? How much income tax do you owe for 2010? You might save tax by taking some time to fine-tune your income tax return before you file it.Read the General Income Tax and Benefit Guide. To supplement the guide here are additional tax tips….”

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http://business.financialpost.com/2011/04/04/39589/

“

The Bank of Canada says it will start circulating new $100 bill made from a special polymer in November, with a $50 note to follow next March.

The more commonly used $20, $10 and $5 notes won't be out until the end of 2013, however….”

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http://money.ca.msn.com/savings-debt/yourmoney/article.aspx?cp-documentid=27953600