Did you know that there are millions of people who are trying to take the right steps to recover from bankruptcy just like you? Statistics are showing that the bankruptcy filing rate has gone up to 50% and is only going to continue to rise as interest rates rise as well as more and more homes are foreclosed throughout the country. Although it is natural to be embarrassed or ashamed of your bankruptcy, you are not alone and there are many steps that can be taken in order to help you recover your credit and begin rebuilding your financial path.

First and most importantly you will want to take an honest look back on your financial decisions and try to find the root of the problem. From looking back you are taking the first active step to change your financial habits and see where you went wrong in the past. This means that you could create a budget for yourself, learn how to control unnecessary spending and even find a different type of employment if this is seen as negatively impacting your life in one way or another. You want to do everything you can to make sure you don't find yourself following the same mistakes and path towards another bankruptcy down the road.

Establishing and recording your financial goals is a great way to begin taking control of your income and making the active choice to use this money wisely. Goals that may include buying a new home, owning a new car, investing to save for retirement or even trying to retire early are all goals that you need to establish and make clear so that whenever you spend money you will remember your goals. From here, receiving a copy of your credit report as well as credit score is the perfect next step.

Although it may be hard or even discouraging, it is a good idea to take a look at your credit report and even place it somewhere in your house you will see everyday as inspiration to make good financial decisions throughout the day. Never let your bankruptcies force you to give up or think negatively. Although in the past many people believed that once there was a bankruptcy on your record, there was no hope for good credit in the future but this is not true. By using positive thinking to keep you motivated and doing everything you can to use your income wisely and only use credit to build good credit, you will be well on your way to recovery.

There are credit card companies which will accept those with bad or no credit, with perhaps slightly higher interest rates. This does not matter because the only reason you want this credit card to use and pay off, never allowing a balance to accumulate as this is only to begin rebuilding your good credit.

Recovering from a bankruptcy is 100% possible for absolutely anyone as long as they take the time to fully understand what their mistakes were in the past and correct them accordingly.

Everything Wanted Credit Ashamed Workbook

The all-new Kindle has a new electronic-ink screen with 50 percent better contrast than any other e-reader, a new sleek design with a 21 percent smaller body while still keeping the same 6-inch-size reading area, and a 17 percent lighter weight at just 8.5 ounces. The new Kindle also offers 20 percent faster page turns, up to one month of battery life, double the storage to 3,500 books, built-in Wi-Fi, a graphite color option and more—all for only $139.

Everything Wanted Credit Ashamed Workbook Picture

Everything Wanted Credit Ashamed Workbook Photo

Everything Wanted Credit Ashamed Workbook Image

Everything Wanted Credit Ashamed Workbook Photo

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Most helpful customer reviews

28579 of 28880 people found the following review helpful.
Kindle vs. Nook (updated 6/2/2011)
By Ron Cronovich
When I wrote this review last August, there was only one Nook, which is now called "Nook First Edition." It continues to be available, but there are two new Nooks. The Nook Color was introduced last fall - it's basically a tablet computer, and runs the Android software that is popular on many smartphones nowadays. It's twice as heavy and costs twice as much as a Kindle, but compared to other tablet computers, it is a very good value.

And now (early June 2011), a new e-ink based Nook is coming out. It's called the "Nook Simple Touch." It is just now starting to ship, so obviously I don't have one and can't tell you anything about it that you can't learn by reading online reviews. But the reviews are very favorable, so if you're considering a Kindle, you should take a look at the new Nook Simple Touch, too.

But the Kindle is nonetheless still a compelling option. It's a mature product, very well designed and easy to use, performance is very zippy, it's competitively priced, and no e-ink based reader has a better, more readable display than the Kindle, not even the new Nook Simple Touch. Also, the Kindle universe is quite extensive: the Kindle store is great and has many thousands of free e-books as well as good deals on most other e-books, and once purchased, you can read your Kindle books on nearly any device you own (computer, phone, tablet), not just your Kindle. And there are tons of great cases and other accessories for the Kindle.

So, while my review compares the Kindle to the older Nook, I'll leave it here because it has a ton of information about the Kindle, a great e-reader that deserves your attention, and because the original Nook continues to be available. That said, I urge you to NOT buy the original Nook. It was a respectable e-reader when it came out in 2009, and still had some value when I wrote about it in August 2010, but it is clearly inferior by today's standards.

------------ my original review --------------

If you're trying to choose between a Nook and a Kindle, perhaps I can help. My wife and I have owned a Nook (the original one), a Kindle 2, and a Kindle DX. When Amazon announced the Kindle 3 this summer, we pre-ordered two Kindle 3's: the wi-fi only model in graphite, and the wi-fi + 3G model in white. They arrived in late August and we have used them very regularly since then. For us, Kindle is better than Nook, but Nook is a good device with its own advantages that I will discuss below. I'll end this review with a few words about the Nook Color.

First, reasons why we prefer the Kindle:

* Speed

In our experience, the Kindle is very zippy compared to the Nook. Page refresh speed (the time it takes a new page to appear after you push the page-turn button) was WAY quicker on Kindle 2 than on Nook, and it's quicker yet on Kindle 3. Yet, I read a whole book on the Nook and didn't find the slower page refresh to be annoying - you get used to it, and it's not a problem.

For me, the more important speed difference concerns navigation - moving the cursor around the screen, for example to pick a book from your library, or to jump to a chapter by selecting it in the table of contents. On Kindle, you do this by pushing a 5-way rocker button, and the cursor moves very quickly. On Nook, you do this by activating the color LCD touchscreen (which normally shuts off when not in use, to conserve battery). A "virtual rocker button" appears on the screen, and you touch it to move the cursor. Unfortunately, the Nook cursor moves very sluggishly. This might not be a big deal to you, but it really got annoying to me, especially since my wife's Kindle was so quick and responsive.

In November 2010, Nook got a software upgrade that increases page refresh speed and makes navigation more responsive. I returned my Nook months ago, so I cannot tell you if the Nook's performance is now equal to the Kindle's, but Nook owners in the comments section have convinced me that the software update improves the experience of using the Nook. If performance is a big factor in your decision, visit a Best Buy and compare Kindle and Nook side by side.

* Screen contrast

You've seen Amazon's claims that the Kindle 3 e-ink has 50% better contrast than Kindle 2 or other e-ink devices. I have no way of precisely measuring the improvement in contrast, but I can tell you that the Kindle 3 display definitely has more contrast than Kindle 2 or Nook. The difference is noticeable, and important: more screen contrast means less eyestrain when reading in poorly lit rooms.

In well-lit rooms, the Nook and Kindle 2 have enough contrast to allow for comfortable reading. But I often read in low-light conditions, like in bed at night, or in a poorly lit room. In these situations, reading on Nook or Kindle 2 was a bit uncomfortable and often gave me a mild headache. When I got the Kindle 3, the extra contrast was immediately noticeable, and made it more comfortable to read under less-than-ideal lighting conditions. (If you go with a Nook, just make sure you have a good reading lamp nearby.)

* Battery life

The Nook's color LCD touch screen drains its battery quickly - I could never get more than 5 days out of a charge. The Kindle 2 had longer battery life than the Nook, and Kindle 3 has even longer life: in the 3 months since we received our Kindle 3's, we typically get 3 weeks of battery life between charges. (We keep wireless off about half the time to save battery power.)

* Weight

Nook weighs about 3 ounces more than the new Kindle, and you can really feel the difference. Without a case, Nook is still light enough to hold in one hand for long reading sessions without fatigue. But in a case, Nook is a heavy sucker. The new Kindle 3 is so light, even in a case, we find it comfortable holding in one hand for long reading sessions.

Reasons some people might prefer the Nook:

* In-store experience

If you need help with your nook, you can take it to any barnes and noble and get a real human to help. You can take your nook into the coffee shop section of your local B&N store and read any book for free for up to one hour per day. When you take your nook to B&N, some in-store special deals and the occasional free book pop up on your screen.

* User-replaceable battery

Rechargeable batteries eventually lose their ability to hold a charge. Nook's battery is user-replaceable and relatively inexpensive. To replace Kindle's battery, Amazon wants you to ship your Kindle to Amazon, and they will ship you back a DIFFERENT Kindle than the one you sent (it's the same model, for example if you send a white Kindle 3, you get a white Kindle 3 back, but you get a "refurbished" one, NOT the exact one you sent them). I don't like this at all.

However, several people have posted comments here that have eased my concerns. Someone looked up statistics on the Kindle's battery and did some simple calculations to show that it should last for 3 or more years. Before that happens, I will surely have upgraded to a newer Kindle model by then. Also, someone found some companies that sell Kindle batteries at reasonable cost and have how-to videos that demonstrate how we can replace the battery ourselves. Doing this would void the Kindle's warranty, but the battery will probably not fail until long after the warranty expires.

[update June 2011: The batteries in the Nook Color and Nook Simple Touch are not replaceable, but the battery in the original Nook is.]

* ePub

Nook uses the ePub format, a widely used open format. Amazon uses a proprietary ebook format. Many libraries will "lend" ebooks in the ePub format, which works with nook but not kindle. However, a free and reputable program called Calibre allows you to translate ebooks from one format to another - it supports many formats, including ePub and Kindle. The only catch is that it doesn't work with copy-protected ebooks, so you can't, for example, buy a Kindle book (which is copy protected) and translate it to ePub so you can read it on a Nook.

* Nook's color LCD touchscreen

The original Nook has a small color LCD screen on the bottom for navigation. This could be a pro or con, depending on your preferences. It makes the Nook hipper and less drab than Kindle. Some people enjoy using the color LCD to view their library or navigate. I did, at first. But after two weeks of use, and comparisons with my wife's Kindle, I found the dedicated buttons of the Kindle easier and far quicker to use than the Nook's color touchscreen. I also found the bright light from the color screen distracting when I was trying to read a book or newspaper (though when not in use, it shuts off after a minute or so to conserve battery).

* expandable capacity

Nook comes with 2GB of internal memory. If you need more capacity, you can insert a microSD card to add up to 16GB more memory. Kindle comes with 4GB of internal memory - twice as much as Nook - but there's no way to expand that. Kindle doesn't accept memory cards of any type. If you mainly use your device to read ebooks and newspapers, this shouldn't be an issue. I have over 100 books on my Kindle, and I've used only a tiny fraction of the memory. Once Kindle's memory fills up, just delete books you don't need immediate access to; you can always restore them later, in seconds, for free.

A few other notes:

Kindle and Nook have other features, such as an MP3 player and a web browser, but I caution you to have low expectations for these features. The MP3 player on the Kindle is like the first-generation iPod shuffle - you can't see what song is playing, and you can't navigate to other songs on your device. I don't like the browser on either device; e-ink is just not a good technology for surfing the web; it's slower and clunkier than LCD screen technology, so even the browser on an Android phone or iPod touch is more enjoyable to use. However, some commenters have more favorable views of either device's browser, and you might, too.

* ebook lending

If you have a Nook or a Kindle, you can "lend" an ebook you purchased to someone else with the same device for up to two weeks. The Nook has always had this feature. The Kindle just got this feature as of December 2010. Most but not all purchased ebooks are lendable, due to publisher restrictions.

* PDF support

Kindle and Nook both handle PDF files, but in different ways. When you put a PDF file on your nook, nook converts it into an ebook-like file, then you can adjust the font size, and the text and pagination will adjust just like with any ebook. But you cannot see the original PDF file in the native format in which it was created. Kindle 3 and Kindle DX have native support for PDF files. You can see PDF files just as they would appear on your computer. You can also convert PDF files to an ebook-like format, and then Kindle handles them just the way the Nook handles them - text and pagination adjust when you change the font size. Unfortunately, some symbols, equations, and graphics get lost or mangled in the translation - even when viewing PDF files in their native format on the Kindle. Moreover, the small screen size of the Kindle 3 and the Nook is not great for PDF files, most of which are designed for a larger page size. You can zoom and pan, but this is cumbersome and tiresome. Thanks to commenters who suggested viewing PDF files in landscape mode on the Kindle (I don't know if you can do this on Nook); this way, you can see the entire top half of the page without panning, and then scroll down to the bottom half. This works a little better.

SUMMARY:

Nook and Kindle each offer their own advantages. We like the nook's user-replaceable battery, compatibility with ePub format, and in-store experience. But we strongly prefer Kindle 3 because its performance is zippier, its higher-contrast screen is easier to read, and it's smaller and lighter so it is more portable and more comfortable to hold in one hand for long reading sessions.

* Nook Color

Everything I wrote about the Nook in this review applies to the original Nook (which continues to be available), not the new Nook Color. To me, the Nook Color is in a different product category than the Kindle or original Nook. Nook Color has an LCD screen, like an iPad or most computer monitors. That's a big disadvantage for people like me, who get headaches from reading a computer screen for long periods of time. Amazon's Kindle product page has an informative section on e-ink vs. LCD displays.

But many people don't have problems reading from computer screens, and the Nook Color is getting glowing reviews in the press and by owners. For the money, it offers a lot of functionality such as a good web browser and the ability to play games and watch movies. But keep in mind: it costs a lot more than the Kindle, it weighs nearly twice as much, it doesn't come in a 3G version, and (unlike the original Nook) the Nook Color doesn't have a user replaceable battery.

2148 of 2184 people found the following review helpful.
I Wanted a Dedicated E-Reader, and That's What I Got
By Matthew E. Coenen
I'm a first-time Kindle owner, so I have nothing to "compare" the latest Kindle to. I don't own a Nook. I don't own an iPad (and, in any case, that's comparing apples to oranges). I don't have a Sony e-reader. '

This will be a short, simple review.

I received my Kindle about a week ago and haven't been able to put it down.

Things I like about my Kindle?
1. The e-ink display is amazing.
2. Using the 5-way controller is simple and effective.
3. Page turn speeds are faster than I thought they would be.
4. It's lightweight, even with the attached cover (I have an Amazon cover with a built-in light)
5. Page-turning buttons are quiet and well-placed.
6. Recharge time is fast.
7. I can order a book and start reading it in less than 60 seconds. Nice!
8. Portability... I can take 3,000 books with me when I travel for work and not require additional suitcases or baggage fees.

Things I'm not too keen on?
1. Buttons are too close together and are laid out oddly.
2. Lack of individual number buttons is frustrating.
3. Power button on the bottom? Not a bad thing. Just an odd thing. (Same for the headphone input). I usually rest the "bottom" of a book on my lap when I read.

Things I hope change in the future?
1. How books are organized... When I put a book in a collection (which is actually a "tag"), it still appears in the main list. It's not actually "moved", it's merely associated.
2. The look of the main screen. I'd like "folders" or some other way to display "collections".
3. Ability to create personal "screen savers."
4. E-book pricing, though Amazon has little control over this. Still, most titles are the same price as or less than their hardback/paperback counterparts. (And I'm not opposed to paying more for convenience and portability).

Things that don't bother me regarding other reviews?
1. The browser is experimental. Amazon has created a dedicated e-reader, and it's meant to be used to read. Period. Not browse the web. If you want to browse the web, get a computer -- not an e-reader.
2. The Kindle is not an mP3 player, either. Yes, it's nice to have some classical music playing in the background while I read, but I don't need to see the title of the song, album art, etc. (And you can skip from track to track on the Kindle using shortcut keys).
3. Lack of a "color" or "touch" screen.

In summary, for $139, I'm quite thrilled with my purchase and have arleady read multiple books on it. In fact, I think I've read more in the past week than I've read in the past month.

1486 of 1511 people found the following review helpful.
A hesistant buyer rejoices on his choice
By Mr Goodwrench
I researched the purchase of a Kindle for a long time. I couldn't decide whether or not it was worth buying a dedicated e-reader. Boy am I glad I made this purchase. The downside to Amazon's online selling of Kindle 3 is that the customers don't get to see it in person. It is much better in person. This may sound stupid, but when I got my new Kindle, I thought there was a stuck-on overlay on the screen containing a diagram of the unit's buttons, etc. I actually tried to peel it off. Doh! The e-ink on this unit is THAT good. I didn't realize that I was staring at the actual display. I also didn't realize that no power is required until the display changes. (thus the great battery life) I do a lot of reading, but was facing the prospect of reading less or buying large type books because of my variable and deteriorating eyesight. The new Kindle has been a godsend. Now, I can decide the size of type I need depending on my level of fatigue among other things. The weight and ergonomics are very good. For someone, like me, with neuropathy in his hands, it is extremely easy to manage and enjoyable to own. To me, it is easier to read than print books. The ease of navigation is great as is the speed. The battery life, so far, has been extraordinary. It easily connected to our home Wi-Fi, which by design does not broadcast an SSID. It downloads books so fast that I almost thought they were not completely received. I did not buy the 3G version because of the price difference and the fact that there is no coverage where I live. If you are not constantly traveling, I don't see the need to spend the extra bucks, but that is a matter of personal choice. For those who have no Wi-Fi at home, remember that you can always download the material to your computer and transfer it via USB. Just today I was watching an interview with Tony Blair on TV. He was talking about his new book, which sounded interesting. I picked up the Kindle and downloaded a free sample before the interview was over. I have only read the preface so far, but will probably buy the book. Now THAT is a great way to buy a book! I haven't used online browsing extensively yet, but find it reasonable for what the device is. This is primarily a book reader, not a laptop or notebook. They are great for what they do, but can't match the e-ink display, or the light weight. For those of you worrying about the wait for the new Kindle, let me end with, "It is worth the wait" This new Kindle is all about the quality of experience. There are many format choices for electronic reading. If you want the best experience, go with the Kindle.

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If it was not so sad, it would be incredibly funny. With all of the information that is available today, people still allow poor credit to disrupt their lives. I find this most often when it comes to bankruptcies on credit reports. Isn't it bad enough that people had to file bankruptcy? I guess the credit bureaus don't think so. They want to make these same folks believe that they have to suffer for 10 freakin years with this on their credit files too. This is an outrage!

To make matters even worse, there are all kinds of self proclaimed "guru" authors that are writing garbage stating that it is dishonest to try and have a bankruptcy removed from your credit report. If that is dishonest, what would you call a non governmental agency like the bureaus wrongfully holding your credit hostage for 10 years? Hmmm....Let's call that down right criminal shall we?

Here is the skinny on bankruptcies. It truly would be illegal if you had it just wiped away using e-oscar, metro 2 or any other software that hackers and scammers are using. If you used the actual laws on the books though, you would LEGALLY REMOVE THAT BK PERMANENTLY! Let me explain further what I mean.

The only way to make that BK disappear from your file is to prove that it does not belong there. I did NOT say that you are going to try and prove that it is not yours....Nope, it is yours. You hired an attorney, signed papers, and went before a judge...IT IS YOURS! What you ARE doing is disputing the bureaus right to place this on your credit report..Doing this would have your BK removed right away!

So before you let your credit report keep you down for 10 years...Get to work and get it removed!

Credit Road Map Patrick Ritchie

Based on personally reviewing 1,000's of credit reports, teaching about credit and finance on the MBA level and the experiences of 1,000's of bank clients, the author of The Credit Road Map will tell you everything you ever needed to know about the world of credit. Take control of your credit! Learn to navigate through the world of credit with The Credit Road Map, a book designed to help you understand how credit works. Whether you currently have excellent credit, bad credit, or no credit, you will find this book extremely valuable. The credit industry has a tighter hold than ever on American consumers and it s high time that consumers become aware of how the credit system works. Most people turn a blind eye toward credit, unaware of the variables that influence their credit records. Save money and save yourself from the frustration that credit can often bring, by learning about the how and why of credit through in-depth examples and explanations. The purpose of the book is to explain a subject that most people do not fully know or understand. Many people seem to know something about credit, but few know all the information necessary to control their credit. This is your detailed plan to progress toward high credit scores. In return, high credit scores save time, money and energy.

ReviewI think this book provides the most up-to-date descriptions of a credit report and credit score I ve seen. The explanations you provide are clear and thorough and will be very helpful for folks of all ages. --Kate Seguin, Financial Wellness Coordinator, The Ohio State University

I found The Credit Road Map to be an outstanding resource written with consumers in mind. Our agency will be referring to your book regularly and often in our efforts to help people with poor credit prepare for homeownership. I was excited by the book's combination of content and ease of use. --Bob Campbell, Executive Director, Rockford, Illinois Area Affordable Housing Coalition

I am fortunate to be a recipient of your book. We are a HUD approved housing counseling agency dealing with debt and credit issues daily. Our purpose is to prepare and get our clients into homeownership. Credit problems are the number one thing holding people back from participating in the American Dream. From the catchy title to the materials covered, I can see a great value in your information to our clients. I have been a credit/homeownership counselor for nine plus years coming out of a twenty year banking career. I learned things. --G.H. Bell, Redemption Ministries, Inc. (HUD Approved Counseling Agency), Thomasville, GA

From the Back CoverWith The Credit Road Map you will:
* Save money!
* Become stress free when you apply for credit!
* Sleep easier at night knowing your finances are on the right track!

Let's face it...having terrific credit makes life easier. And terrific credit is attainable. For everybody! Get your credit and financial life on track with The Credit Road Map today! You'll find a lifetime worth of credit knowledge in one book, written by an experienced lender who has taught about credit on the MBA level and looks at credit reports on a daily basis.

Take control of your credit!

Learn to navigate through the world of credit with The Credit Road Map, a book designed to help you understand how credit works. Whether you currently have excellent credit, bad credit, or no credit, you will find this book extremely valuable. The credit industry has a tighter hold than ever on American consumers and it's high time that consumers become aware of how the credit system works. Most people turn a blind eye toward credit, unaware of the variables that influence their credit records. Save money and save yourself from the frustration that credit can often bring, by learning about the how and why of credit through in-depth examples and explanations.

About the AuthorAn Arizona loan officer and owner of the Ritchie School of Real Estate Finance, Patrick Ritchie has taught thousands of people how the credit system works. He has authored the renewal hours course on credit, Understanding Consumer Credit Rights and Responsibilities, serves as an instructor at Scottsdale Community College and is a frequent guest speaker for the Arizona State University MBA Real Estate Strategies course. He is a member of the USA Today Small Business Panel and formerly co-hosted a weekly talk radio show focused on credit and real estate finance. He was an Evans Scholar at the Ohio State University where he earned his degree in Business Administration.

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Credit Road Map Patrick Ritchie Pic

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2 of 2 people found the following review helpful.
Wonderful resource!
By Glenn H. Roe
This book is a great starting point for industry insiders and laypeople alike, easily explaining the sometimes complicated world of Credit. As a University teacher (and former debt-ridden student) I can foresee great benefits to using Mr. Ritichie's book to help students starting out succesfully navigate through the pitfalls of establishing and maintaining responsible credit practices throughout their adult lives.

2 of 2 people found the following review helpful.
Informative and Enjoyable - tough combination to find.
By Patricia Zebro
I expected this book to be informative but dry. I was pleasantly surprised by the authors strong writing style that told an interesting personal story while teaching a finacial lesson I could easily implement in my own life. My hat is off to this author for a job well done. I got the financial education I was after but was surprised to find myself enjoying the read.

1 of 1 people found the following review helpful.
EXCELLENT & INFORMATIVE --- 10 STARS!!!!!!
By C. Cole
Patrick Richie has written the very BEST book on understanding credit reports, and what loan institutions look for on your credit file. Very easy to read and comprehend! Also very enlightening!!!

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With the new bankruptcy law in effect since October 17, 2005, there is a lot of confusion with regard to the new "means test" requirement. The means test is used by the courts to determine eligibility for Chapter 7 or Chapter 13 bankruptcy. The purpose of this article is to explain in plain language how the means test works, so that consumers can get a better idea of how they will be affected under the new rules.

When most people think of bankruptcy, they think in terms of Chapter 7, where unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult ordeal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law.

Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level.

To apply the means test, courts look at the debtor's average income for the 6 months prior to filing and compare it to the median income for that state. For example, the median annual income for a single wage-earner in California is $42,012. If the income is below the median, then Chapter 7 remains open as an option. If the income exceeds the median, the remaining parts of the means test comes into play.

This is where it gets a little bit trickier. The next step in the calculation takes income, less living expenses (excluding payments on the debts included in the bankruptcy), and multiplies that figure times 60. This represents the amount of income available over a 5-year period for repayment of the debt obligations.

If the income available for debt repayment over that 5-year period is $10,000 or more, then Chapter 13 will be required. In other words, anyone earning above the state median, and with at least $166.67 per month of available income, will automatically be denied Chapter 7. So for example, if the court determines that you have $200 per month income above living expenses, $200 times 60 is $12,000. Since $12,000 is above $10,000, you're stuck with Chapter 13.

What happens if you are above the median income but do NOT have at least $166.67 per month to pay toward your debts? Then the final part of the means test is applied. If the available income is less than $100 per month, then Chapter 7 again becomes an option. If the available income is between $100 and $166.66, then it is measured against the debt as a percentage, with 25% being the benchmark.

In other words, let's say your income is above the median, your debt is $50,000, and you only have $125 of available monthly income. We take $125 times 60 months (5 years), which equals $7,500 total. Since $7,500 is less than 25% of your $50,000 debt, Chapter 7 is still a possible option for you. If your debt was only $25,000, then your $7,500 of available income would exceed 25% of your debt and you would be required to file under Chapter 13.

To sum up, first figure out whether you are above or below the median income for your state - median income figures are available at http://www.new-bankruptcy-law-info.com. Be sure to account for your spouse's income if you are a two-income family. Next, deduct your average monthly living expenses from your monthly income and multiply by 60. If the result is above $10,000, you're stuck with Chapter 13. If the result is below $6,000, you may still be able to file Chapter 7. If the result is between $6,000 and $10,000, compare it to 25% of your debt. Above 25%, you're looking at Chapter 13 for sure.

Now, in these examples, I have ignored a very important aspect of the new bankruptcy law. As stated above, the amount of monthly income available toward debt repayment is determined by subtracting living expenses from income. However, the figures used by the court for living expenses are NOT your actual documented living expenses, but rather the schedules used by the IRS in the collection of taxes.

A big problem here for most consumers is that their household budgets will not reflect the harsh reality of the IRS approved numbers. So even if you think you are "safe," and are able to file Chapter 7 because you don't have $100 per month to spare, the court may rule otherwise and still force you into Chapter 13. Some of your actual expenses may be disallowed.

What remains to be seen is how the courts will handle cases where the cost of mortgages or home rentals are inflated well above the government schedules. Will debtors be expected to move into cheaper housing to meet the court's required schedule for living expenses? No one has any answers to these questions yet. It will be up to the courts to interpret the new law in practice as cases proceed through the system.

Personal Credit Plain English Seminar

PLAIN ENGLISH explanations, forms, sample letters and industry secrets of how to quickly and legally repair credit and increase your credit score by 200 points or more so you can obtain credit cards, car loans and mortgages -- even after bankruptcy!

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0 of 0 people found the following review helpful.
Good Solid Information
By Mary M
This has good information that covers all the aspects of how to repair your credit and how credit works. I don't necessarily like to read so I liked the audio CDs so I could listen to them in my car. Used the forms CD to print letters to get my credit straightened out.

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Bankruptcy often is the last ultimate solution for many debtors who have unbearable debts. With filing a bankruptcy, you will get rid of your debts instantly and relief you from the harassing call of your creditors.

Although bankruptcy has many undesirable consequences such as your bad credit record will remain on your credit report for 7-10 years, but with a little work, you can improve your credit even before these negative records expire. Here are five easy steps you can take to rebuild your credit.

Step 1: Get to know your current credit status

The first step to rebuilding your credit is to look at exactly where you stand. Order all your three credit reports from those three national credit bureaus: TransUnion, Equifax, and Experian. You can order these reports online, it easy and secure.

Print each report and review it closely. Try to understand the information listed in your credit reports and highlight any negative records or inaccuracies that are damaging your credit score.

Step 2: Check the expiration dates

By law, your bad credit record will remain in your credit report for 7 to 10 years, but the exact expiry date might be different among these 3 reports. Your bad record will still remain at your credit report although you have pay off your old debts and discharge from bankruptcy.

Look up the exact date of each of bad records including judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. You will likely see a major improvement in your credit score when these records expire.

Step 3: Request For Correct On Any Inaccurate Records

If you find inaccurate records, fraudulent accounts, or records that should have expired on you credit reports, you have the right to send a separate dispute letter to each of the credit bureaus to correct your Equifax, Experian, and TransUnion records. The bureaus will initial a 30 days investigation to see whether your requests are valid and if so, they will correct the inaccuracy in your credit report.

Just one note, don't try to dispute any of the positive information listed in your credit reports and it is a waste of time to attempt to dispute these records. Disputing positive information may actually harm your credit scores.

Step 4: Start to create good credits

Since there is no way to remove your bad record from your credit report, the best way to improve your credit score is to add good credits and building up your credit from there. You can easy do this by open up a new credit card from banks like Orchard Bank (Orchard bank has credit card plan designed specially to help people rebuild their credit after bankruptcy).

Use this new credit card responsibly and make the monthly payment timely; with this you are building new history of good credit behavior on your credit report. Over time, you may want to open additional credit card accounts or obtain a loan to boost your credit score even higher.

Step 5: Monitor your progress

Subscribe to a credit card monitoring service or get a credit card monitoring software and use it to track your credit score progress closely. Your credit score should improve steadily as you continue to use credit responsibly and add new positive information to your credit reports.

Summary

Bankruptcy does not need to chain you to bad credit for the next seven to ten years, but you have to be proactive in order to recover and rebuild your credit.

Credit After Bankruptcy Easy Follow Pic

Credit After Bankruptcy Easy Follow Picture

Credit After Bankruptcy Easy Follow Pic

Credit After Bankruptcy Easy Follow Picture

YES... there is life after bankruptcy! Bankruptcy is not the way to go if there is any chance at all of avoiding it. But if there is no other way out, it is not the end of the world for you.

After the shock wears off it's time to sit down and take a good look at where you are and formulate a plan to re-build your credit. It isn't as hard as you may think if you understand the credit system and work with it... not against it.

As for where you are now, realize your credit scores are shot with a bankruptcy on your record. You scores are probably somewhere around 450 to 490 points, which is definitely not good.

But wait, there really is life after bankruptcy! The good news is you have no debts now and the slate is clean. This is the time to start fresh and build a positive credit history from the ground up. By setting a goal for yourself, and following some credit restoration guidelines, you can be at a 720+ credit score in 12 months or less.

Here's How it's Done

The way you rebuild credit is by using credit (wisely and responsibly). You will find a multitude of lenders that want to work with you (even with your horrible credit scores) to help you re-build your credit.

Keep These Points in Mind

As you work your credit rebuilding plan with these new lenders, keep this in mind; lenders place the most weight on your current history. They know you had trouble in the past, but they want to see how you are handling your credit responsibilities now.

Here is a Seven Step Credit Re-building Plan to Follow:

1. You need a budget so you can make intelligent decisions about how to go about re-building your credit. Be sure to allow for monthly payments for new credit debt. You must go into debt in order to build a good history of responsible credit management.

2. Open one or two secured credit card accounts. Secured credit cards are the easiest to open and are reported to the credit bureaus. You determine the credit limit on the cards by making a deposit with the credit card company. Your deposit is your credit limit. After a 6 to 12 month solid history of use with the card, you can ask for your deposit back and the card will revert to a regular un-secured card.

3. Don't pay off the balance every month. Your goal is to build a solid payment history of timely monthly payments. It's better for your credit scores if you always leave a balance on the card, even if it's small.

4. Never, never, ever close a credit card account. One measure used in determining credit scores is your debt to high balance ratio. Lenders want to see 35% or less debt to limit ratio. If you have a card with a limit of $1,000, and your balance is $850, your debt to limit ratio is 85% ($850 divided by $1,000). But if you had another card also, with a $5,000 limit and a zero balance, your total debt would be $850 and your total high limit available credit would be $6,000 ($1,000 plus $5,000). Your total debt to high limit ratio would then be 14% ($850 divided by $6,000). If you had previously closed your un-used card with the $5,000 limit, instead of a 14% ratio, you would be looking really bad with an 85% debt to limit ratio.

5. Open different kinds of credit lines. The more different types of credit you have, the more responsible you appear to credit bureaus. Someone with a credit card or two, a department store credit line, an auto loan, a bank loan, and a mortgage payment shows they are able to handle various types of credit responsibly. Don't limit yourself to just credit cards. You can get a secured bank loan as a way to build more credit, by opening a savings account with the bank, then borrowing up to that amount. The savings account is security for the loan, so the bank has no risk and is happy to make the loan.

6. Keep your debt-to-income ratios at 28/36 or less.

28/36 RATIO EXPLAINED

The 28/36 ratio is the ratio the majority of lenders work with when you apply for mortgage financing. Even though you are not applying for a mortgage loan now, that ratio makes a good guideline to follow to keep you in line budget wise, and to measure your progress. If you see yourself straying from the 28/36 ratio, you know what you have to do to get back in line.

The 28 means that your monthly housing payments (rent payment or mortgage plus taxes & insurance) should be no more than 28% of your gross monthly income. The 36 means the percentage of income that goes toward paying all your recurring debt payments, (including your housing expense). This would include credit card payments, car loans, student loans, child support payments, judgments, and/or alimony payments.

FOR EXAMPLE. If your gross monthly income (before deductions) is $3,930.00 per month

• $3,930 Monthly Income x 28% = $1,100 allowed for housing expense.
• $3,930 Monthly Income x 36% = $1,415 allowed for housing expense plus all recurring monthly debt payments. (315 allowed for new credit debt).

NOTE: The ratio used by FHA is 31/43. You could use this ratio if you prefer.

• $3,930 Monthly Income x 31% = $1,218 allowed for housing expense.
• $3,930 Monthly Income x 43% = $1,690 allowed for housing expense plus all recurring monthly debt payments. (472 allowed for new credit debt).

7. Never take on more debt than you can handle comfortably. This is why a budget is so important. The goal is to rebuild your credit, not to bury you in debt in can't handle. Be careful to not get over extended. Always leave a cushion for savings and emergencies. Be wise!

Bankruptcy is not the way to go if there is any chance at all of avoiding it But if there is no other way out, it is not the end of the world for you. And yes... there is life after bankruptcy.

7 Steps 720 Credit Score

Learn the seven little-known rules of credit-----and turn even POOR credit into GREAT credit and into an opportunity to SAVE hundreds of dollars EVERY SINGLE month!

7 Steps 720 Credit Score Photo

7 Steps 720 Credit Score Picture

7 Steps 720 Credit Score Picture

7 Steps 720 Credit Score Photo