How To Get A ClickBank Refund

There’s a lot of crap for sale on ClickBank. There are also some good things available. Personally, as a software/ebook seller I like to use ClickBank because they handle all the tax collection issues (this is going to become a big issue for people selling things directly via PayPal in the next few years, trust me) and they pay regularly and consistently.

But I also like to use ClickBank as an individual buyer because they make it easy to get a refund. So if something I buy isn’t up to snuff for whatever reason (see my recent Google Nemesis review) I can get a full refund within 8 weeks of the purchase, no questions asked.

There are two ways to get a refund. The simplest is to simply take the electronic receipt ClickBank mailed you after the purchase and forward it to refunds@clickbank.com along with a brief message asking for a refund and why you want the refund.

The second way is to go to the ClickBank purchase questions page and select the “I would like to request a refund” subject. You’ll have to fill in the purchase details (obtained from the aforementioned receipt) and give an explanation. (Since you need the receipt to do this, it’s just simpler to mail a copy off IMHO…)

In either case, you’ll get a refund within two or three business days. It’s really that simple.

BTW, refund requests shouldn’t be knee-jerk reactions. If you’re having a problem with the product, contact the vendor first and see if they can fix it. Refunds should be a last resort. Sellers get notified when refunds occur and can see the reason why a refund was requested… there’s nothing worse than getting a “the product never worked” reason when you could have fixed it easily enough if the buyer had contacted you first.

Out of all the ClickBank products I’ve purchased, I think I’ve only asked for refunds on two of them.

New Bankruptcy Rules

Bankruptcy laws have been set in place to help individuals or businesses get a fresh start when living under overwhelming debt. The new bankruptcy rules are not eliminating the process, but are making it more difficult for some people to declare bankruptcy. Whether a person or corporation has had some kind of catastrophic event that has caused a financial crisis, or they have gotten in debt through inattention to their financial dealings, they have a way to start anew through filing for debt protection. Once the debtor has declared bankruptcy and asked the court's help to get out of his predicament, his creditors cannot harass him for the money they are owed.

The new bankruptcy rules governing who can file for bankruptcy are given under certain "Chapters." Personal bankruptcy is filed under either Chapter 7 or Chapter 13. In Chapter 7, the Trustee will liquidate all of the debtor's non-exempt property and then distribute the money to creditors. Exempt property includes a person's home, automobile, household furnishings, and any tools or equipment necessary to his livelihood (for example, a carpenter could keep his tools). The rules of exemption vary from state to state, so a debtor will have to check with local attorneys to learn about local practices. Bankruptcy laws state that once all those creditors have been paid something, the debts are discharged, and the debtor starts over with a clean slate. To start the procedure, the debtor files a petition with the court with a list of unsecured creditors and the amounts due them. Forms are available to handle the case personally, but it's usually wise to have an attorney handle the filing. The filer will be assessed fees for the petition with the court, plus attorney fees. The Trustee also receives a fee, but that comes out of the monies in the estate and not from the debtor directly. A Chapter 7 is usually discharged within six months.

Filing under Chapter 13 results in a reorganization, where the debtor presents to the court a plan for paying down his debts by making regular payments to the court over a three-to-five-year period. At the end of that time, all unsecured debt is discharged. This type is usually more satisfactory to creditors because they will receive a greater percentage of their bill. This won't change under the new bankruptcy laws. Both types result in freeing the debtor of unsecured debts, stopping foreclosures and repossessions and utility shut-offs. For their part, creditors must stop writing or calling the debtor about what is owed.

Current laws do not discriminate between people who earn a lot and those who earn a little. The new bankruptcy rules will change that provision. The court will require new guidelines to see if the debtor qualifies for bankruptcy. Under the new bankruptcy laws, anyone with income exceeding the cost of living index in their area will be required to pay monthly payments to creditors for up to five years to repay the debt. Bankruptcy will be more difficult to file, and because of the extra work involved, attorneys will charge more. The rules will hurt those who have a good income but have high payments on homes, rent, or car payments. Those existing payments will not be taken into consideration by the court when determining the amounts that must be paid to creditors each month. The court will apply the "means test." The end result may be that some debtors will sell their homes and/or cars and move to a less expensive area in order to afford the payments under the new bankruptcy rules.

Undoubtedly, more people will take advantage of Debt Settlement Programs to reduce debt for those who have good incomes but have trouble making monthly payments on credit cards, personal loans, medical bills, and other types of unsecured debt. Although the settlements on unsecured debts vary, a savings of 60 percent is common. Clients make payments to their own bank account while the debts are being negotiated. The fees for the program are taken out of the account each month until paid, but the funds to pay the creditors remains in the account until settlements have been negotiated. The new bankruptcy rules may have a hidden benefit. More people will opt for debt consolidation, home equity loans, and best of all, will learn how to be good stewards of their assets. Being a good steward of God's gifts is commanded in 1 Peter 4:10, "As every man hath received the gift, even so minister the same one to another, as good stewards of the manifold grace of God." As we follow God's command, we will learn to live abundantly without incurring lots of debt. This will make us a better witness to those around us and will give us financial freedom.

Life After Bankruptcy

Life after bankruptcy is like a road with a fork in it--one can choose to take the path that leads to better financial decisions and a more prosperous future, or take the path of repetition and be no better off than before. The point is, for most people who have filed for help under Chapter 7 or 13, it will be necessary to handle finances differently than in their pre-bankruptcy days, according to those who give financial advice after bankruptcy. When debts piled up out of "wants" instead of "needs" a change in attitude is absolutely necessary. However, when the process has resulted from personal tragedy, i.e., job loss, illness, or accident that has drained a person's financial reserves, the situation is quite different.

Financial advice after bankruptcy is available from more than one source. The attorney who helped to file the case in the first place would be the logical first choice for guidance. Where an individual filed on his own (not usually the best way, but for some it can be done), then finding an attorney who handles these cases would be a good beginning. In addition, there are a number of consulting companies who will help a person with financial problems without charge. Conservatism in financial matters is the logical first approach to regaining financial stability in life after bankruptcy. Separating what is needed from the wants in one's life can put things in perspective. Simplifying life helps not only on the financial level, but on the spiritual as well by relieving the stresses that come with money problems. Jesus helped his disciples not to rely on money for their security: "And commanded them that they should take nothing for their journey, save a staff only; no scrip, no bread, no money in their purse;" (Mark 6:8)

One unalterable fact that results from bankruptcy is that the proceeding stays on the debtor's credit report for ten years. Anyone the debtor approaches for credit will see that when they do a credit check, and many times it is enough to result in a turn down. There are ways to overcome that handicap. One thing that can be done is to get a prepaid credit card from the bank. Put in a given amount of money into a special account, have the bank issue a credit card up to that limit, and use it for purchases. This will help to re-establish a good credit record. Life after bankruptcy might also include getting a mortgage loan for extra cash for purchases. As long as the borrower is gainfully employed, this could give a person the "leg up" needed to begin the climb back to credibility where money is concerned.

Life after bankruptcy isn't altogether bleak. There are lenders that will look further than the legal proceeding to make their decisions on lending to someone who has taken that route. Car dealers especially, are often willing to work with post-bankruptcy customers because transportation is necessary for them to work. The drawback is, the interest will likely be a little higher than for the person who has a better credit record. Also, for things like clothing there are second-hand shops that carry some quality clothing for a fraction of what would be paid in the retail stores. Financial advice after bankruptcy will largely be a matter of taking a different view of the world. The kind of car one has been used to, and the clothes a person wears may have to be adjusted. Eating out may become a rarity, along with other sorts of entertainment.

If a person filed for relief because of job loss, financial advice after bankruptcy may come in the form of suggestions for classes that will prepare a person for a different line of work. These can be arranged without cost to the student under certain government and private organizations that work with various campuses, or student loans may be obtained that won't have to be paid back until the student is gainfully employed at whatever he has prepared himself for. Also included in advice after bankruptcy may be greater cooperation in the family. Where children are old enough to hold down part-time jobs, they can bring in needed cash. If a spouse has not been working, perhaps that will have to change. All of this will be temporary until the breadwinner is once again gainfully employed. Life after bankruptcy sometimes means difficult choices.

Americans have become so accustomed to living above their means through the use of credit that it's easy to understand how people wind up having to seek help through the court system. When debt reaches the level where no matter how hard the debtor works he cannot keep up with the burden, there is little alternative. Financial advice after bankruptcy can be an enlightened time if the debtor is successful in changing his attitude toward spending and saves more. This change in attitude, along with learning how to budget what is coming in constitutes the most important points stressed when someone offers advice. Finding a source for this kind of advice is not complicated. Attorneys are listed in most phone books, and of course there is the Internet search that is available to those having computers. No one has to face post-bankruptcy problems alone.

Personal Bankruptcy Laws

Personal bankruptcy laws were created to protect the consumer and creditors. It provides a way for individuals suffering from extreme financial debt to reconcile personal debts and start again. The laws also exist to return at least some money owed to creditors, who often take a total loss when debtors default. These laws fall under Title 11 of the United States Code and are handled through federal district courts. Individuals can file under Chapter 7, choosing to sell assets in order to pay what is owed, settling the debt in four months or under Chapter 13 where they propose a three to five year repayment plan, usually covering only a portion of the debt. Debtors can choose to declare some or all current debts. After either process is complete, the declared debts are wiped clean.

The history of personal bankruptcy laws dates back to biblical times, when Moses declared the "year of jubilee." Every seventh year, the Israelites were to give their land and animals a year of rest or a "sabbath." After seven sabbath years, or 49 years, the whole nation enjoyed a year of freedom from all debt: loans, borrowed possessions, and slavery. "And ye shall hallow the fiftieth year, and proclaim liberty throughout all the land unto all the inhabitants thereof: it shall be a jubile unto you; and ye shall return every man unto his possession, and ye shall return every man unto his family... And if thy brother be waxen poor, and fallen in decay with thee; then thou shalt relieve him: yea, though he be a stranger, or a sojourner; that he may live with thee." (Leviticus 25:10, 35) It was a year of redemption, a year of starting over.

Laws have changed quite a bit since then. Individuals can file under Chapter 7 again after six years and under Chapter 13 any time. Many critics of personal bankruptcy laws in the United States claim that filing bankruptcy has been too easy on debtors. Bankruptcy filings in the 1980s and 1990s increased 300%. By the year 2000, millions of dollars each year were being lost in bankruptcy proceedings. Many Americans file after a personal crisis - a medical problem, divorce, or natural disaster. But thousands fine themselves in financial despair simply by overspending. This has caused concerned for many lawmakers, who tried for years to amend bankruptcy law to protect it from abuse.

On October 17, 2005, these lawmakers found victory in the Bankruptcy Abuse Prevention and Consumer Protection Act. This amendment to personal bankruptcy laws makes it more difficult for individuals to file under Chapter 7. Unlike past years, where a judge was the sole determinant of whether someone could file, debtors now have to pass a two-part test to qualify for Chapter 7. Salary is compared to a state median income as determined by the Internal Revenue Service (IRS). If a person falls below that median, he or she may qualify. A debtor's income also must leave less than 25% available to pay for non-secured outstanding debt. The formula allows for exemptions for needed expenses such as housing and food. But the intent of the additions to personal bankruptcy laws is to only make Chapter 7 filings available to those who really need it and forces everyone else to file under Chapter 13 thereby keeping them responsible to repay at least a portion of personal debt. Natural disasters and some other personal hardships can be taken into consideration.

The new act also incorporates other steps to help prevent further financial problems. Within six months before filing, individuals must meet with a credit counselor for a 90-minute session in the district where the bankruptcy will be filed. Before the debt is discharged further counseling sessions or money management classes are required. All expenses must be paid by the debtor. Some argue that most people filing for bankruptcy can't afford such classes and that they create a further hardship. Fees for filing under personal bankruptcy laws (around $200 to $300) can be made in payments to help alleviate some of the financial pressure, but installments are limited and must be paid within 180 after filing. Fees may be waived if the debtor's income is less than 150% of the poverty line. However, attorney fees must be paid and since the induction of the law, rates have increased 75% to 100%.

The new personal bankruptcy laws also put greater restrictions on homestead exemptions. Most states allowed individuals to protect home equity from creditors. Now, the law gives freedom for the states to impose individual restrictions. In some states, the debtor has the option to choose a state exemption over a federal exemption or vice versa. However, a filer must have lived in that state for a minimum of two years for state exemptions to apply. Individuals who file under Chapter 7 still risk losing their homes in the liquidation. Filers under Chapter 13 can usually retain them as long as they continue to make mortgage payments on time during the length of proceedings as well as other debt obligations under the written agreement.

Individuals who file under Chapter 7 or Chapter 13 of the personal bankruptcy laws work with a court-appointed trustee who manages the financial transactions with creditors. This impartial trustee meets with creditors, asks questions of both parties to reach a mutual plan of action, and makes sure that each party holds up the contract. When the terms of the plan have been fulfilled, the debtor is released from all remaining obligation to the creditor and then has the opportunity to start again.

Chapter 13 Bankruptcy Attorney

The primary role of a Chapter 13 bankruptcy attorney is to represent debtors who have regular incomes from which to pay creditors in compliance with a court-ordered repayment plan. Also known as wage earners, these debtors choose to file Chapter 13 petitions, rather than liquidate assets through Chapter 7. Unlike a Chapter 7 petition in which a U.S. Trustee is appointed to collect, liquidate and distribute debtor assets to satisfy creditors; Chapter 13 allows individuals to develop a repayment plan which gradually relieves them of outstanding debts over a maximum 5-year period. Chapter 13 bankruptcy attorneys consult with wage earners to help them accurately identify and retain exempt assets, which should not be liquidated. In addition to easing the process of filing, attorneys stop garnishments, repossessions, and foreclosures and help wage earners keep personal property such as real estate holdings, automobiles, and employee paychecks. However, wage earners who owe federal, state, and local taxes; alimony; child support; and student loans are still liable for these debts, which cannot be discharged. Without the knowledge of proceedings, schedules and laws, debtors may run the risk of losing valuable assets to creditors. The debtor's attorney will thoroughly review the petition to ensure that non-exempt and exempt assets are handled properly. During the course of proceedings, the Chapter 13 bankruptcy attorney will become the wage earner's most valuable aide in resolving personal indebtedness, while satisfying federal requirements.

Personal bankruptcy lawyers provide expert legal counsel from the moment a consumer walks into the office for an initial consultation to the time that the case is discharged. A good lawyer will spend a considerable amount of time ensuring that the debtor's case is well prepared and well represented. Most individuals are at a complete loss when filing for consumer debt protection; but a competent, experienced attorney knows the ropes and can suggest legal ways to help debtors successfully file without breaking or compromising the law. Initially, personal bankruptcy lawyers will help debtors decide which chapter of the federal code best suits their situation. With slight variations, procedures for filing Chapter 7, 11, and 13 petitions are very similar. Personal bankruptcy lawyers assist debtors in filing official notices of bankruptcy to the court and creditors, represent debtors at creditor and confirmation hearings, and correspond with creditors regarding secured and unsecured claims. While consumers are not prohibited from preparing and filing petitions on their own, a qualified attorney can accurately interpret the law to the client and prevent debtors from making poor judgments and filing inaccurate reports, which may cost them dearly down the road.

Just having expert legal counsel serves to diffuse the pressure and emotional stress of filing. Once the debtor's lawyer serves notice to creditors, all debt collection tactics must cease by law. Creditors are prohibited from writing, calling, text-messaging, emailing, or contacting debtors in any way. From the moment creditors receive notice, all communication between the debtor and creditor must cease. The Chapter 13 bankruptcy attorney communicates directly with the creditor, or a legal representative, and can enforce cessation of collection efforts through the courts. The wage earner is then free to concentrate on working to pay off creditors.

Bankruptcy can be intimidating; and a debtor needs all the legal muscle possible to prepare and defend the legal right to consumer debt protection. Testifying in front of a room full of angry creditors is like going into a den of hungry lions with the debtor as the main course! Personal bankruptcy lawyers can skillfully shut the mouths of the "lions" and hopefully, walk away with a judgment in favor of the client. A qualified lawyer is a debtor's advocate in the courtroom, negotiating with creditors and legal representatives and pleading the debtor's case before the judge. While an attorney is an invaluable asset, the Bible speaks about an advocate far more invaluable than any earthly lawyer: "My little children, these things write I unto you, that ye sin not. And if any man sin, we have an advocate with the Father, Jesus Christ the righteous:" (I John 2:1). Whenever we fall short of God's expectations and sin, Jesus Christ pleads our case and reconciles us back to a right standing with God.

As a wage earner's advocate, the ultimate goal of a Chapter 13 bankruptcy attorney is to protect debtor assets, help devise an acceptable repayment plan, and eventually help reconcile the debtor to financial soundness. But remember: the Chapter 13 bankruptcy attorney is not working for free. The more time the lawyer takes with a debtor, the more it is going to cost. However, most attorneys charge a flat rate legal fee for consumer debt protection cases, which can usually be paid in installments. A familiar proverb says, "You can give a man a fish and he'll eat today, or teach a man to fish and he'll eat for a lifetime." Lawyers are there to guide and counsel debtors on supplying the courts accurate, timely and complete information; but they cannot be expected to hold debtors by the hand 24/7, unless they are willing to pay. In addition, new reforms hold lawyers accountable for inaccuracies and false information on debtor petitions. Reforms also sanction attorneys if Chapter 13 filers default on repayment plans, after assuring the court of an ability to pay. In order for cases to become satisfactorily discharged, debtors and personal bankruptcy lawyers must build a relationship of mutual trust, cooperation and honesty. Debtors must also comply with federal mandates to enroll in approved financial management courses before cases can be officially discharged. Chapter 13 bankruptcy attorneys and clients play important roles in submitting accurate, timely and truthful petitions which comply with U.S. bankruptcy code, satisfy creditors and ultimately, provide debt relief.

Personal Bankruptcy Lawyers

The primary role of personal bankruptcy lawyers is to advise and represent debtors who decide to file petitions for insolvency. While some claim that debtors can handle filing detailed financial data themselves, lawyers are hired to ensure that petitions are not only filed correctly, but also that petitioners are afforded every right available under U.S. Bankruptcy Court law. Most consumers are unfamiliar with legal proceedings and court-ordered judgments; and many would be at a loss in the courtroom. Whether petitioners choose to file Chapter 7 liquidation cases, Chapter 11 business restructuring plans, or Chapter 13 petitions to repay creditors from wages earned, they must meet certain criteria. Without an understanding of legal proceedings and applications, debtors could easily wind up losing valuable assets, such as cars, residences, and business and personal property to creditors. While the law does not prohibit debtors from filing consumer debt protection on their own, personal bankruptcy lawyers are adept at interpreting the law to clients and can help prevent debtors from making poor judgments and filing inaccurate reports, which may work against them in a courtroom full of creditors.

Filing bankruptcy is not a do-it-yourself project. Just compiling listings of assets and liabilities can be a daunting task for the average consumer. Personal bankruptcy lawyers can provide expert legal counsel to determine whether a debtor should consider filing for consumer debt protection or not. Sometimes cash-strapped consumers see no way to circumvent repossessions and harassment from bill collectors without taking their case to court. But a reputable attorney should give debtors some viable options and advise for or against taking the desperate measures preparing and filing petitions entails. The attorney works for a fee, but he or she will also work on behalf of the client, poring over financial information and assessing whether the client has strong supportive evidence to pass the muster of the court. While personal bankruptcy lawyers are debtors' advocates, God has provided an Advocate far more powerful than any earthly lawyer in the person of His Son, Jesus Christ. "My little children, these things write I unto you, that ye sin not. And if any man sin, we have an advocate with the Father, Jesus Christ the righteous. And He is the propitiation of our sins: and not for ours only, but also for the sins of the whole world" (1 John 2:1-2).

Astute personal bankruptcy lawyers' first consideration will be to discuss which type of filing best suits client needs. Chapter 7 liquidation petitions require a court-ordered sale of assets to amass sufficient monies to pay off creditors. Consumers who own real property, stocks and bonds, securities, vehicles, or equipment which can be converted into cash to repay delinquent accounts are most likely to choose Chapter 7. A U.S. Bankruptcy Trustee is appointed to collect, liquidate, and dispense debtor assets to satisfy secured and unsecured creditor claims. For debtors who don't have many assets, but work a 9-to-5 job, personal bankruptcy lawyers will usually advise filing Chapter 13, or a wage earner petition. Chapter 13 wage earners have a regular income from which to pay creditors in compliance with a court-ordered repayment plan. Legal counselors will advise clients about formulating a plan which demonstrates to the court a commitment to restructure outstanding debt over a three to five year term. Once the court and creditors accept a wage earner's plan, debtors filing Chapter 13 petitions are subject to court-ordered payments dispensed by U.S. trustees or administrators. For up to five years after filing, debtors should refrain from incurring more liability. Trustees are there to help monitor the debtor's finances and ensure that the court's decisions are upheld.

Meanwhile, personal bankruptcy lawyers are there to help protect the interests of the debtor and to ensure that the court does not infringe on the debtor's legal rights, such as issuing orders that monies used for the client's subsistence become part of disposable income. In addition to helping debtors determine the most appropriate petition to file, attorneys also assist debtors with filing public notices of bankruptcy; provide expert legal representation at creditor and confirmation hearings; communicate and correspond with creditors regarding secured and unsecured claims, and resolve discrepancies between debtors, creditors and the court, which can arise any time personal finance is an issue. Attorneys can also stop garnishments, repossessions, and foreclosures and help petitioners keep exempt property, such as real estate holdings used as personal residences, automobiles used for work, and spousal property. Once lawyers file and serve a notice of bankruptcy to the debtor's creditors, all collection tactics and harassment must cease.

Having personal bankruptcy lawyers relieves debtors of the stress and anxiety associated with filing. Petitioning for consumer debt protection can be exhausting and intimidating; and a debtor needs a powerful ally to battle hostile creditors and defend a legal right to debt protection. But simply having professional legal representation enables debtors to breathe a little easier, in spite of an overwhelming money woes. The case is presented before the court with precision and with an anticipation that the court system will render fair and equitable judgment on behalf of both the petitioner and the creditors. Attorneys have the client's best interests at heart and are ever present to assure that assets are protected and that creditors and debtors are both treated fairly. An intimidating process like filing for insolvency requires experience, knowledge, wisdom and an astute application of jurisprudence. Debtors who can afford to hire competent legal assistance to present consumer debt protection cases to the U.S. Bankruptcy Court should be appreciative and thankful for a system which protects and defends the legal rights of its citizenry, in spite of an inability to maintain financial solvency.

Personal Loan After Bankruptcy

Getting personal loans after bankruptcy is certainly possible, but frankly it has to be likened to hitting one's head with a hammer to make an ache go away. Yet there are very imprudent people who think drinking a gallon of water ten minutes after almost drowning is a funny joke and will scoff at warnings to stay as far as possible away from a loan company and credit card. The other side of the coin is that there are companies that will sell triple decker cheeseburgers to people over four hundred pounds and lend Mt. Everest high interest loans to those who shouldn't be borrowing a shovel from a next door neighbor. But the world can be a crazy place and everyone seems to have a reason for doing that they do. So getting loans after bankruptcy is a bad idea for most people in that position but the deed can be done.

If a person yells the word bankruptcy in a room full of bankers, at least seven of them will have coronaries within a few minutes. It is the worst of the worst financial situations, not because it cannot be overcome eventually, but because the legal proceeding has a shelf life of ten years. That is a lot of time for something rotten to remain hanging around someone's neck. And painfully, the effect of such a financial smell is known by all who loan money to those afflicted with the odor. People can argue all day long if it is fair for those who have gone through such a devastating crisis to have the large "B" branded on FICO reports for ten years. Good, honest and hard-working folks have had to go through this ordeal, some through no fault of themselves and others because of poor judgment. But in both cases, getting personal loans after bankruptcy can be tricky.

In the case of chapter seven bankruptcies, the idea of getting a loan after the proceeding is a little strange. Chapter seven legal proceedings are borrowers who are finally captured by the creditors' posse and put their hands up in surrender. Despite what the TV lawyers say, chapter seven means that most of one's possessions, if they are extensive, are going bye-bye. In each state, the list of items that a person filing for relief can keep from the auction block is varied. In some states a person can keep saddles and horses, personal items and a four wheeler for each family member while in another state a television can get auctioned but a stove cannot. And a person's house, or at least most of its equity is fair game in most states. The point is that personal loans after bankruptcy are basically going to be unsecured loans because there is little or no collateral to offer.

In the world of personal loans after bankruptcy, the unsecured is the proverbial redheaded step-child. This kind of loan is the most expensive to get because if the loan defaults, the lender has nothing to haul away in a truck for repossession. This loan holds all kinds of risks for the lender and consequently the interest rates are higher than Kilimanjaro. Yet this is basically the only kind of loan besides a car loan that these wounded borrowers can get. To add insult to injury, a finance company will probably be the only entity willing to make a commitment to personal loans after bankruptcy and their prices to borrow money might rival the GNP of San Marino. This kind of loan truly is the last thing in the world that filer's for bankruptcy need.

The other type of personal bankruptcy available for those who find themselves surrounded by the posse is chapter thirteen. With this legal proceeding, those who are throwing up their hands in debt surrender are looking for a way to repay debt on their terms and not the lenders. In other words, longer payback schedules and less interest on the loans are the usual foundations for this legal filing. In many ways, chapter thirteen bankruptcy is very much like most debt counseling programs, which provide the lower interest side, making possible the payback of credit loans within five years if the debtor sticks to the program. But in debt counseling and in chapter thirteen, the debtor cannot open another loan account or the program is ended or the filing converts to chapter seven. It's ironic that a chapter seven filer may be eligible for personal loans after bankruptcy more quickly than the filers of chapter 13.

Actually, irony runs rich when talking about personal loans after bankruptcy. The very thing that was the downfall of most people filing for debt relief is the thing that can actually help them get their good name back over time. Credit reports will have the big scarlet "B" on the information, but small, unsecured loans that are faithfully paid back incrementally on time each month begin the restore the health and vitality of a very anemic financial condition. The question about personal loans after bankruptcy being a hammer to kill a headache really comes down to does the one holding the hammer know exactly where to hit in order to stop the pounding. And can a person who has probably failed for a long time to handle credit properly suddenly change his ways and start being responsible? The great prophet Jeremiah once asked, "Can the Ethiopian change his skin or the leopard his spots?" (Jeremiah 13:23a) The rhetorical answer is no, but with God all things are possible.

Private Student Loan Bankruptcy

Rather than face private student loan bankruptcy, students should take time to research the obligations of borrowing and make use of any federal loans which may be available. In the flurry of paperwork involved in applying for colleges and other institutions of higher learning, there is sometimes little information given regarding preparing for the financial aspects of higher education. Students and parents need to take the responsibility for discovering the sources of scholarships, loans and other forms of financial aid. Guidance offices are usually willing to help, yet it may be necessary for the student or parent to initiate the quest for information.

Two sources of loans are available: federal or private loans. Federal loans are provided by the government to students for educational expenses. Find out one's eligibility for these funds by completing the Free Application for Federal Student Aid (FAFSA). Private educational loans are also available. Many students, even if they are eligible for grants, scholarships and federal loans, need additional funding and turn to private sources as well as government funding. Be sure to exhaust the federal solutions first, as these may have additional benefits, such as the right to deferment, forbearance, or cancellation under certain circumstances, and the establishment of affordable repayment plans to pay off the debt. Otherwise, one may find oneself in private student loan bankruptcy.

Deferment of federal student loans can be an important strategy in managing educational expenses and preventing private student loan bankruptcy. This process allows borrowers to postpone repayment without incurring interest costs. Interest will accrue on an unsubsidized loan, but the lender can decide to postpone interest charges until after the deferment period is over. This process is known as capitalization. If the student is able to pay the interest costs, it is best to do so even if this is not immediately required. This will help to keep interest costs lower than if one waits to repay such costs until they are due.

Other benefits of federal student loans are recent programs which have been devised to help students manage educational costs and avoid private student loan bankruptcy. One of these is Income-Based Repayment (IBR). This program will help by providing loan caps based on income and family size. This should work out to payments of less than 10% of income for most borrowers. Those with lower earnings might have smaller payments. The IBR option has certain debt-to-income ratio requirements in order to meet the qualifications for a reduced payment. IBR will also forgive debts remaining after 25 years of qualifying payments. Federal loans made to students, but not to their parents, are the only types of loans eligible for this program.

The US Department of Education also expects to finalize details of a public service loan forgiveness program by November of 2008. Under this program, if the student is a teacher or works in government service or at a nonprofit 501(c)(3) organization, he or she may qualify for loan forgiveness after 10 years of eligible payments and employment. Those employed by federal, state, local or tribal governments are eligible and employers include those who provide various public services (childcare, health services, law and library services, to name a few). Note that qualifying payments need not be in consecutive months, as long as they total 10 years (120 monthly payments). Also, teachers may qualify for a whole year's service by completing annual contracts which are at least eight months long. Both of these programs are still being finalized, so check the Department of Education website for complete details. Borrowers who are trying to avoid private student loan bankruptcy may have to apply for a federal loan in order to be eligible.

Many students find that they also require private loans to make educational training possible. If students find themselves in situations where they are considering private student loan bankruptcy procedures, they should realize that this is seldom the best answer to financial problems. Student loans are generally not excused because of bankruptcy. In the rare case that this may be possible, the borrower must show the court that payment of this debt will impose undue hardship on the individual and his or her dependents. Several conditions must be met. It must be shown that the borrower would not be able to provide even a minimal standard of living, that additional conditions exist which would make it unlikely that the financial situation could be resolved (such as ongoing medical disabilities which preclude returning to work), and that the debtor has attempted to make efforts to repay the loans (possibly by requesting that a repayment schedule which reflects current realities be set up by the lender).

Courts can be somewhat arbitrary about their decisions. Borrowers who claim to have a low-paying job may be instructed to seek a better one in order to be able to make payments. Those with alcoholism or mental health problems are not automatically qualified for private student loan bankruptcy. Some courts are more lenient, and if successful, the loans may be cancelled. However, remember that bankruptcy procedures will have costs of their own, and having a private student loan bankruptcy on one's record can affect his or her ability to borrow funds for other purposes. The best solution to the dilemma is to speak with the lender about setting up a reasonable repayment plan. As Matthew 5:25 advises, Agree with thine adversary quickly, whiles thou art in the way with him; lest at any time the adversary deliver thee to the judge.... At times, lenders are willing to defer payments for a while until a financial situation improves. Consolidation of loans should be carefully considered, especially if one is going from a federal loan program to a private lender. Borrowers may only get one chance to consolidate, and this may negate certain safeguards and privileges which are found in the federal loan system.

Rebuilding Credit After Bankruptcy

Rebuilding credit after bankruptcy is like a winning a spouse's trust after an incident of infidelity: it takes time to build confidence in the relationship again. And it takes time for creditors to rebuild confidence in consumers who have violated promises to pay. Like an injured spouse, creditors need to see a consistent and faithful payment history to place trust in wayward consumers again. In a debt-deferred society, it's easy to get caught up in the habit of overspending. The lure of shopping malls and sumptuous merchandise is simply too hard to resist. And the knowledge that with one swipe of a little 2x3-inch piece of plastic, cardholders can have almost anything they want is simply mind-boggling. Not to mention the fact that most charge card companies only request minimal monthly payments. Countless consumers get seduced into charge card abuse every year and the road back to respectability can be long and arduous.

The best way of rebuilding credit after bankruptcy and cleaning up a blemished record is to re-establish a good payment history as quickly as possible. Consumers may choose to work with a money management consultant or find a good self-help book on debt reduction at the local library. Debt recovery gurus also recommend obtaining a secured charge card and making and paying for purchases on time. Similar in appearance to unsecured credit cards available after bankruptcy, a secured card is a major bank charge card. The difference is that a secured card is backed by the consumer's funds, which are regularly deposited into a savings account accessible to the card company. Monies are withdrawn from the consumer's savings as the card is swiped for purchases. The advantage of using a secured charge card is the consumer's spending limit is confined to cash available in savings, but can be increased as deposits are made. In addition, issuing companies monitor secured card activities the same way they monitor those of unsecured cards. Through regularly and consistently paying off secured charge card debt, individuals who have gone through consumer debt protection proceedings can begin re-establishing borrowing power.

Once a solid payment history is established with secured funds, most financial institutions will make unsecured credit cards available after bankruptcy to faithful consumers. Debtors shouldn't be surprised to see multiple offers from major card companies pouring in; the word spreads fast when former debtors begin to regain credibility. The Bible speaks about restoration as a reward for faithfulness. In Isaiah 57:18, God promised to restore Israel if they repented from idolatry -- "I have seen his ways, and will heal him: I will lead him also, and restore comforts unto him and to his mourners." Debtors who turn from charge card abuse and excessive spending place themselves in a position to reap the rewards of responsible financial management. Comforts they enjoyed prior to bankruptcy can be restored, as financial burdens are eventually lifted.

When lenders make unsecured credit cards available after bankruptcy, consumers should use moderation to avoid being tempted back into indebtedness. Just remembering the agony of overwhelming debt should be enough to bring an individual back to the realization that conservative consumerism is the best course to take. Consumer counseling agencies recommend establishing a good track record of timely, consistent payments over a minimum period of two years. They assert that lending institutions may extend loans to debtors who have filed Chapter 7, 11 and 13 bankruptcy petitions if financial reports indicate renewed faithfulness. Unsecured credit cards available after bankruptcy are a token of trust extended to responsible consumers.

Another method of rebuilding credit after bankruptcy is to purchase a vehicle at a "buy here, pay here" used car lot. Most of them do not penalize consumers for bad debts and bankruptcies. No, it's not a major auto dealership, and the interest rates may be higher, but individuals can use this type of financing to re-establish a sound car payment history. After bankruptcy, consumers should also ensure that current reports accurately reflect discharged accounts. Go online and obtain free reports and scores from the three major reporting bureaus and review them carefully. Contact them personally to ensure that any discrepancies, such as outdated filings and settled accounts are properly recorded. Timely payments with unsecured cards made available after bankruptcy also contribute to rebuilding positive credit histories. Rebuilding credit after bankruptcy sometimes requires "piggy-backing" off of someone else's good credit. Financial consultants recommend asking a family member or friend to co-sign on a small bank loan and paying it off as quickly as possible. But remember: co-signers are equally liable for unpaid bills; to avoid damaging a co-signer's solvency, faithfully honor loan committments. Financing furniture and appliances on a 90-day-same-as-cash basis also affords an opportunity to demonstrate trustworthiness. Store records will substantiate consistent payments and can be used to validate a former debtor's renewed reliability.

Once good credit has been re-established, take it easy. Consumers will have to take a good hard look at how they've managed money in the past and do away with poor practices before rebuilding credit after bankruptcy. Use unsecured credit cards available after bankruptcy sparingly. Instead of spending money irresponsibly, establish a budget and stick to it. Make entertainment a treat, instead of a routine and plan family nights at home with popcorn and rented videos, instead of going to a movie. Join a warehouse shopping club and buy larger quantities of food, meats and household items, re-packaging them for later use at huge savings. Join a Christmas club plan to save year round for holiday shopping and avoid overusing charge cards. Once credit-worthiness has been restored, be determined not to fall under the seductive spell of impulsive buying again.