Blog Carnival: Bankruptcy

The topic this week (aside from it being my Blogaversary!!) has been bankruptcy. I wanted to stick with this topic and bring my first blog carnival to The Debt Princess readers.

I hope to have a carnival each time I cover a topic in my What NOT to Do posts.

The links that follow pertain to bankruptcy in one way or another.

*Brad Chaffe of Enemy of Debt talks about how to use the Pro Rata Method. This was completely new to me prior to reading Brad’s advice on filing bankruptcy. It is also one way I’ll be addressing my debt this summer when I start to dive into it.

http://www.self-reliance-works.com/2009/12/dealing-with-creditors-using-the-pro-rata-method/

*Again Brad discusses something in a clear and concise way. In this piece, he explains the Debt Snowball Method. This formula for paying off your debt was popularized by Dave Ramsey.

http://www.self-reliance-works.com/2009/12/pay-off-debt-using-the-debt-snowball-method/

*There are some times when bankruptcy can help. The gentleman in this blog post is one example of how it could be helpful. I wonder though, will he be back into trouble again in 10yrs? Does he have a plan for paying off debts in ways other than credit cards?

http://www.wisebread.com/how-you-know-when-it-s-time-for-bankruptcy/

*Without using legal language, How to file bankruptcy explains the process in a clear manner.

http://www.wisebread.com/debt/bankruptcy

*Further explanation of Chapter 7 vs. Chapter 13. I didn’t realize that Chapter 13 allows for the person to hold onto their assets which is what most businesses do. I don’t have any assets so Chapter 13 would not have been an option for me.

http://www.budgetinginthefunstuff.com/chapter-7-versus-chapter-13-bankruptcy/

*This piece discusses life after bankruptcy and how quickly your credit and credit score changes. It discusses it with and air of “when can I have credit cards again.” In my opinion, most people who have filed, should NOT have credit cards again for the full 10yrs that the bankruptcy is on the credit. I was offered a credit card with a limit of $200 from Capital One TWO years after my bankruptcy. I took it and went on my happy way again with credit cards. Look where it got me! (I don’t blame Capital One, I take full and total responsibility for my actions.)

http://www.wisebread.com/life-after-bankruptcy-whats-next

*This piece discusses when to seek Credit Counseling and if a Debt Management Program, such as what Travis (  ) discussed. It’s another option to consider along with bankruptcy.

http://www.wisebread.com/credit-counseling-when-you-need-it-and-when-you-dont

I also blog at A Five Star Life. I write about anything that comes to mind but try to focus on finding the good in daily life.