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Like others in Fresno and the central valley, you’re considering the benefits of chapter 7 bankruptcy.  The holidays are over and you are avoiding or delaying your bankruptcy for the perceived negative impact it is going to have on your life.Good and bad – there will be consequences for filing bankruptcy.  Here are 3 ways your life will change after you file your bankruptcy case:#1 Stress Will Go AwayMost of my bankruptcy clients delay filing for bankruptcy for years – even though they need it badly.  Month in and month out you have endured the humiliating and harassing phone calls; will you be sued?  Will your wages be garnished?  I have watched clients come in the door with crazy with debt.  They don't know where to begin...they do not know who or how much they owe.  You can’t sleep.  Your mind is filled worry. Worried about the present, worried about the future.  Don't know where to go.  Bankruptcy does not eliminate all of your worries.  But it will phone calls, stop the worry about wage garnishment, and bring order to the financial chaos you have been enduring for way too long.  And the less stress and worry you have, the more sleep you will get.  Finally.#2 – Credit Card Debt Disappears Many people I help fall into the cycle of paying off one credit card with a second credit card – robbing from Peter to pay Paul.  This can’t go on forever.Bankruptcy stops you from using credit cards.  Best practices dictate to stop using credit cards 3 months before filing bankruptcy.  I often get asked if it is possible to keep a credit card after filing for bankruptcy.  You can't ... and that is a good thing.Many of the people I help have not used credit cards for years before filing bankruptcy because they stopped paying on their cards.  They have learned already how to get buy on a cash basis. This is a good thing.  Being forced to only buy those things that you can pay for now is a good habit to get into and will help you in never having to hire a bankruptcy attorney like me again.Some will think this is a good thing, but I don't:  soon after you file for bankruptcy you will get flooded with credit card offers.  These will be credit cards with terrible interest rates.  I don’t recommend that my clients get any of them.  It will be too easy to fall into old habits – only this time you will be paying super high interest rates and won’t have bankruptcy to fall back on; you won’t be able to file another chapter 7 bankruptcy for eight (8) years.If you must have a credit card I would recommend a secured card where you have to put money down as collateral before you will be issued a card.  This can be a great way to re-build your credit after bankruptcy.#3 – You Will Get Back Control of Your LifeWhen you are in serious debt you lose control.  You lose control of your phone.  Every time the phone rings you have a physical reaction.  You lose control of your bank account.  You try to deal with the pressure that the collection agencies are putting on you by agreeing to payment plays where the creditor automatically debits your account each month.But it never stops.  Every day you wake up not knowing what type of payments are going to be taken out of your account and worse if you will have the money to cover it.When you file for bankruptcy your creditors can no longer take money out of your bank account.  They can’t garnish your wages.  They can’t even call you on the phone.  Think of that – actually answering your phone without fear of who is on the other end.I never try to sugar coat that bankruptcy can’t solve all your problems and absolutely has consequences when it comes to getting credit in the near future.However, for many dealing with serious debt problems bankruptcy will not only bring order back to your life – you may not be able to start rebuilding your financial life without it.Photo Credit:  http://www.flickr.com

Country music star Eddie Montgomery, known as one-half of the country duo Montgomery Gentry, ended 2013 by filing for Chapter 7 bankruptcy. The filing comes after the singer accumulated millions of dollars in liabilities following a divorce and failed business venture.  The filing will be used to help pay off his liabilities while continuing performances [...]

People who file for bankruptcy and look for the credit counseling provider with the lowest price could be getting more than they bargained for.
Start Fresh Today, a company that offers Credit Counseling and Debtor Education bankruptcy courses, announced on December 11, 2013 a new product called SFT Plus Pak.  According to a press release put out by the company, the product “helps advertisers get their marketing message directly to these very consumers who are rebuilding their financial lives.”
To read the press release, click here.
Among other things, SFT Plus Pak offers to marketers the ability to reach by direct mail approximately 100,000 Start Fresh Today consumers – those folks who put their faith in the company for their bankruptcy credit counseling and financial management certifications.
Here’s the video they released to talk about this wonderful product:
 
The company is giving marketers who target people coming out of financial difficulty access to Start Fresh Today customers.
When you get out of bankruptcy, your goal should be to remain debt-free and build up your financial position. Rather than facilitating this goal, Start Fresh Today is happily throwing you to the wolves in the name of further profit.
I get that the industry is experiencing a race to the bottom in terms of pricing, and that some excellent providers have gone out of business because of the downward pressure on pricing credit counseling and financial management certifications. Bankruptcy filings are down nationwide as is, and some providers are charging as low as $5 to do a certification.
Even if one company were to be able to do 100,000 certifications per year at $5 each, there’s very little profit after overhead and employees. It’s a bad business, and I sympathize.
That said, selling your list of bankruptcy customers to companies that specifically target them as subprime borrowing candidates leaves a bad taste in my mouth.
Maybe you’ll be disciplined enough to throw out the mail and resist the temptation of easy post-bankruptcy credit.  Perhaps you’ll delete the emails and text messages from lenders who want to help you dig yourself back into the hole of debt.
I sure hope so. I hope you’ll take some smart steps to rebuild your credit after bankruptcy.
Related:

• Your Bankruptcy Was Discharged – Now What?
• How Long Does Bankruptcy Affect Your Life?
• Credit After Bankruptcy And The Five-Year Commitment

I know a lot of bankruptcy lawyers who have encouraged their clients to use Start Fresh Today for their credit counseling and financial management programs in the past.
The company has always done a fine job as far as I know, providing reasonable services at a reasonable price.
In spite of this, I won’t be using them anymore – nor will I recommend their services to other lawyers and people filing for bankruptcy.
Looking for a good provider of bankruptcy-related credit counseling and financial management? Here are a few that I trust and respect:

• Hummingbird Credit Counseling and Education
• GreenPath Debt Solutions

Buyer beware …
Picture is a screenshot of the YouTube video.

We spend an awful lot of time with our mobile phones in our hand. At the same time, we don’t do much to keep our spending in line.
Thankfully, there are a host of free mobile apps to help you get your finances in order, save money, and do it all without putting down your phone.
Here’s a roundup of some of the best I’ve found for the Android platform, which is my operating system of choice.

Coupons And Deal Finders
Groupon. Groupon is the grand-daddy of deal sites, and the mobile app will help you get daily deals on activities, venues and restaurants in more than 500 cities. I’m a big fan of using Groupon when I travel, and have gotten lots of great deals while on vacation.
LivingSocial. LivingSocial is another deal-of-the-day service that seems to have a wider variety of discounts available.
Google Offers. If everyone else is doing it, so is Google. They’ve got a lot of nationwide offers that help when it comes time to shop for gifts.
RetailMeNot. I’ve been a user of this app since it came out. RetailMeNot gives you coupons and discounts from real, live retailers. If there’s a promotion in your area, you’ll get a handy alert. Very useful for when you’re out at the mall.
The Coupons App. This app gives you coupon savings and shopping deals at your favorite stores, restaurants and gas stations. Compare prices using a barcode scanner, get alerts, and more. This is a very cool app.
GasBuddy. Live in your car? Why pay more for gas than necessary? This app will help you track down the best deals no matter where you are.
ShopSavvy. Go to a store, scan the barcode with this app, and it will tell you if you can get a better deal online. Just like that.
Price Check by Amazon. Similar to ShopSavvy, you can scan a barcode and find out if Amazon has a better price. You can also pull up product descriptions and customer reviews.
Travel Apps
HotelTonight. You’re in a new place and need a hotel room the same night. Use HotelTonight to get a last-minute discount on unfilled rooms.
Priceline. Bid on a hotel room or a car and get up to 60% off list prices with this app. Why anyone pays retail for a rental car or hotel room is beyond my comprehension.
Kayak. Compare travel sites for a great deal on flights, hotels and car rentals. There are competitors, but I’ve been a Kayak fan for as long as I can remember.
Personal Finance Apps
Mint. This budgeting app, owned by Intuit (the folks behind Quicken and QuickBooks), helps you track income and expenses while staying in sync with your bank and credit card accounts.
Expensify. If you’re a business traveler, Expensify is for you. This app will help you track expenses, scan and save receipts, import bank and credit card data, and even enter mileage traveled and the other time-based expenses.
Manilla. Manilla allows you to manage your daily finances, household bills, travel rewards, magazine subscriptions and healthcare accounts all in one place. You can store your bills and statements, set up alerts to avoid late fees, and more.
Pick Your Tool Freely
The great thing about these apps are that they’re all free. Download them, use what you like, and jettison the rest.
The important part, of course, is to use something to make your life easier. These apps should help.