Though we’ve only just rung in the New Year, April 15^th will soon be upon us. Tax Day. Possibly the most panic-inducing date on the calendar. This year, don’t let yourself be caught by surprise with an unaffordable tax bill. Calculate what you owe early, and if you find you won’t be able to pay, there are options to defer or set up an installment plan by declaring a financial hardship status.

Many people each year are unable to pay their taxes. They have no assets, no cash, and no job. Yet, the phrase “as certain as death and taxes” exists, if only to describe the IRS’ persistence in demanding what you owe.  By following IRS Hardship Rules you can delay your tax bill or break it up into affordable monthly payments.

If you have decided conclusively that you are unable to pay your tax bill you can catch a break by filing for “Hardship” or “Currently Not Collectible” status. You will need documentation to prove an inability to pay, such as disability or unemployment forms. You will have to prove that your current income will not cover your expenses with the additional burden of paying your debt to the taxman.

Once you’ve collected proof in the forms of copies of monthly bills, paystubs, and other income information, the IRS will require you to fill out Form 433A to submit with this documentation. This form will deconstruct your monthly cash flows in terms of Food, Housekeeping Supplies, Apparel, Personal Care Products & Service, Transportation, Utilities, and Rent/Mortgage.

The IRS will consider if your monthly bills fall above or below the monthly “National Average” of basic needs expenses in order to conclude if you have a true hardship.  When you fill out the form, keep in mind the following National Standards as defined by the IRS in 2010 for a single individual:

• Food: $293
• Housekeeping Supplies: $28
• Apparel & Service: $86
• Personal care products & services: $32
• Miscellaneous: $87

Once the IRS receives the form they will then determine if you qualify for financial hardship. Proving financial hardship to the IRS is actually quite difficult. Only a small number of taxpayers applying for a hardship meet the standards for this program.

The IRS Installment Agreement actually has several drawbacks. For one, you will end up paying more taxes in the long run than if the taxes were paid off all at once due to interest and penalties. Secondly, you may still incur a tax lien on your permanent record in order to secure the Installment Agreement.  This could have damaging effects on your credit, making it harder to qualify for loans in the future. In some cases it can even hinder your ability to get hired. Finally, if your debt is over $25,000, the IRS may require you to sell assets in order to lower the principal on your plan.

With this in mind, you may be better off exploring other avenues for paying back your tax debt including a personal signature loan or a bad credit auto loan. These types of loans are far more easy to qualify for than any of the IRS’ hardship programs. Additionally, they may help you avoid the emotional rollercoaster of applying for and proving a financial hardship with the IRS.

Financial hardship is one of the most stressful and trying experiences a modern person can have.  The thought of being in debt to someone, or worse not being able to pay back that debt, is enough to make grown men break down sobbing. Maybe you’ve lost your job, or your expenses have gotten out of hand, but the fact remains, you owe money and you don’t have it.

So what do you do? Many people have gotten relief by deferring their debts or having them written off altogether through bankruptcy filing. While this can be a solution, filing for bankruptcy can be an expensive and often financially-damaging option in the long run. While most bankruptcy lawyers will offer an initial consultation free of charge to see if bankruptcy is right for you, the filing fees can make it prohibitively expensive.

The United States Bankruptcy Court has recently released a fee schedule for Bankruptcy.

* For Chapter 7, 12, or 13 the fees range from $200-$500

* For Chapter 9, 11, or 15 the fees are over $1,000

And these don’t include all of the lawyers fees, or fees to conduct a means test to prove your financial hardship. With these fees included you could be looking at a total bill of close to $2,000 for a simple Chapter 7 bankruptcy filing.

Ok, so I know it seems like I’m painting a pretty dark picture, and you’re probably thinking. “Good grief! I can’t pay my bills, I can’t pay to file for bankruptcy, what am I going to do!?” First, take a deep breath. Everything is going to be fine. There may be other options you haven’t considered.  Here are a few alternatives to filing for bankruptcy:

1. Find out if you’re judgment-proof

Judgment-proof basically means that you have no assets and little to no income that can be collected. Your debtors can still sue you, but they cannot take your money. For instance, if all of your income is from Social Security, these payments are legally protected and cannot be collected. If you are judgment-proof you may not need to file for bankruptcy. You can request that your debt collectors stop contacting you until you get back on your feet.

2. Cut unnecessary expenses

Cancel cable and the data plan for your smart phone. Budget aggressively and start opting for cheap food items that can be bought in bulk. Also, when you file bankruptcy you may have assets, such as a car, repossessed and sold in order to help pay your debt. If you sell this car yourself you may find you can get a better price and bring in the cash you desperately need. In short, prioritize your payments, and sell anything that can bring in more cash.

3. Apply for a Personal or Bad Credit Loan

If you expect your income to rise or stabilize in the future, you may be able to take on and pay off the debt from a personal loan in less time than it would take to recover from a bankruptcy. While signature and bad-credit loans often have high interest rates, working steadily to pay one off will actually build your credit over the long run. Filing for bankruptcy can have devastating effects on your credit for up to ten years.

Now that you know what to expect from bankruptcy filing fees, and have some strategies for avoiding bankruptcy wherever possible, you can make the best choice for your particular situation.

Bankruptcy is the process by which a person can repay or eliminate their debt in the event that they cannot pay. When a person files bankruptcy they receive protection from the federal bankruptcy court that shields them from any actions their creditors take to collect the debt. This is known as the “automatic stay” and can prevent utility disconnections, foreclosures, evictions, the collection of overpayment for public benefits and wage garnishments.

The purpose of this is to give the individual an opportunity to eliminate (under Chapter 7) or re-pay (under Chapter 13) their debts while maintaining a basic standard of living to support future income. The following basic bankruptcy laws and comparison of a Chapter 7 and Chapter 13 Bankruptcy will help you determine if and which bankruptcy is appropriate for your situation.

Is Bankruptcy Right For You?

While bankruptcy may sound like a free pass from paying off your debts, it’s often much more complicated and the consequences far more dire than you would imagine. Bankruptcy can destroy your credit, and make it difficult or impossible to hold a bank account or credit cards. It can potentially cause the loss of valuable possessions and make it difficult to buy a home, car, insurance, or even get a job. For this reason, most advisors see bankruptcy as the very last resort and should be filed only with the counsel of an experienced bankruptcy attorney. If you are struggling to pay your debts, understand that bankruptcy is a decision not to take lightly.

In order to file for bankruptcy you must first attend mandatory credit counseling at your own expense within six months of filing, and you must satisfy certain income requirements to make sure it does not exceed state bankruptcy income limits. Only then can you move forward with bankruptcy proceedings depending on which type of bankruptcy is right for you.

Chapter 7 vs. Chapter 13

The type of bankruptcy you choose will depend on your assets and property, the remaining principal on any mortgages, your regular income, and other factors. Chapter 13 allows individuals with a steady income to retain certain property, such as a home or car that if lost would further negate your ability to make timely payments. Under this option the court will approve a repayment plan where you give up part of your future income to repay some or all of what you owe without having to surrender your property. Some debts, including overdue school loans, child support, taxes, car loans and home mortgage payments must be repaid. Others can go uncollected and will be written off.

Under Chapter 7 Bankruptcy the court will appoint a trustee to collect and sell your non-exempt property. Proceeds will go to paying off the amount you owe. Under Chapter 7, there is no repayment plan and you risk losing your property, even if you had transferred it to a friend or family member to avoid loss. The transfer can be undone so that the property can be sold to collect on your debt. Certain debts, such as past due child and spousal support cannot be expunged.

If you are considering bankruptcy as an option to get out of debt, take this decision very carefully and take the time to educate yourself. Always consult the expertise of an experienced bankruptcy attorney and a financial advisor to ensure that this is the right move. While bankruptcy can be a difficult process, it may be the best option for your particular situation.

An individual’s credit score, also commonly known as the FICO score, is computed independently by the Big Three credit bureaus – which include Experian, Equifax, and TransUnion. The computation is based on a shared formula. The credit score is significant because it is highly indicative of a person’s financial fitness.

A small improvement of just about 40-50 points can be readily translated to huge financial savings on loans and other debt instruments which can be enjoyed for a lifetime. You should strive to do anything which can be able to make your credit score more favorable, since it means getting easier access to cash when it is needed.

The scoring system which is used in the computation of FICO was introduced by Fair, Isaac & Company. It is important to know the different whereabouts of your FICO because this also means knowing which areas of your financial status can be improved, as stated below:

Paying your dues on time: 35%

Total amount of your financial obligations: 30%

Length of personal credit history, stated in years: 15%

Amount of your new credit instruments: 10%

The different types of credits used: 10%

With the significant weight of the factors earlier mentioned, given below are 5 suggestions on how you can improve your FICO:

1. Make sure to pay on time. Aside from the delays in your payments, other factors which can hurt your credit score include bankruptcies and any other legal actions which are taken against you.

2. Pay some of your debt, as you can. The greater is the debt that you have, the worse your credit score could be. If you have extra money, you should try to settle some of your unsecured debt, such as those acquired through credit cards, and make it less than 50-70% of the total debt which you owe.

3. The length of your credit history cannot be directly controlled personally. However, it is important to take note of the fact that the more time passes by, the better it gets as a component of your credit score.

4. Do not apply with too many credit instruments, such as credit cards. This will allow you to make timely payments and will not burden you with any unnecessary payments.

5. It is a good thing to have variety. You will be in good financial shape if you have a combination of different means of spending such as credit cards, charge cards, and installment debt cards. However, it is still important to note that you should not be able to acquire too much debt with one card.

If you are asking “How to improve my FICO score”, just follow the 5 tops mentioned.

In terms of normal daily life, having a low credit score is not really a big issue. It is nothing but just 3 digits which are maintained in the database of the bank or other lender and it just tells them how risky you are as a borrower.

However, if the time comes that you will need money in order to buy a new car, these 3 digits can suddenly become highly significant to your future. With auto financing, the credit score is a big deal.

For those people who are on the lookout for guaranteed auto financing and bad credit loans, below are 5 tips which should be noted:

1. The decisions of most lenders will be largely based on your credit score.

Majority of the lenders in the market, assumed to be about 90% of them, place a high emphasis on your credit score and it is a major factor which affects their decision in approving your application. At times, it may seem like the credit score is all that matters for them.

2. Look for lenders who regularly serve people with bad credit.

Even if many lenders put an emphasis on the credit score, there are also others who do not seem to care at all even if your credit score is low. These are the lenders who specialize in working with people who have bad credit score as there are other factors which affect their decision regarding the approval of the loan.

3. The main concern of most lenders: whether or not you will repay the loan.

At the end of the day, regardless if you are approaching a good or bad credit personal loan lender, the main concern would not be your credit score but if you will repay the amount in the stated period. Your credit-worthiness or your ability to pay in the period stated is more important than your credit score.

4. Prepare all documentations which will prove your credit-worthiness.

Make sure that you have all the documents which can prove that you are not too much of a risk to the business and that you are credit-worthy. You can show your resume, work history, and even referrals from other people testifying of your credibility to be approved of the loan you are applying for.

5. Send your applications to at least 3 lenders serving needs of people with bad credit.

Make sure to explore all the available options. Do not be contented with just one option. Rather, build a list of at least 3-5 possible lenders.

Take note of these 5 tips if you are on the lookout for guaranteed auto financing and bad credit loans.

For many people, having a car is not only something which is well-deserved, but it is also something which is a necessity. There are other means of transportation such as cabs and buses, but then, it is still a better idea to have your own car as it can easily move you from one place to another on your own terms.

To get your new car, you have different options for doing so, such as through auto financing. However, this becomes very challenging if you have a bad credit score (or FICO score). If you have just recently got fired from a job or if you are suffering from other additional expenses, you will also find it extra challenging to get your new car.

If you also lack financial resources needed to make a down payment on a car, you are again facing another challenge to getting that car. In this case, it can be said that having no cash for a down payment, coupled by the fact that you have a bad credit score, you will most likely end up having no chance for securing a car loan.

If you are one of the many people who would want to pay little or no money down bad credit auto financing, below are 5 steps which should be given consideration:

1. Look for a car which is suitable for you but that is within a reasonable price range.

The first thing which you should remember is that you have to be very practical. Choose a car which is affordable. If you choose a car with a lower price, it means that the amount of the loan will also be lower. In this case, there is a better chance that your loan application will get approved. Look for something which will make you happy yet realistic enough given your current financial situation.

2. Pool in as much money as you can for the down payment.

Even if you are already aware that you are short of financial resources, try as much as you can to gather any extra cash which can be used as down payment. Even with just some hundreds of dollars, you are already increasing your chances of being approved as you are showing the lender your intention of having the total loan amount paid.

3. Grab a copy of your latest credit report and fix any error in said report.

One of the first things which should be done before finally proceeding with the application process is pulling out a copy of your credit report from any of the credit bureaus. Make sure to read all the details of the report and have them understood. If there are any errors in the details, have them reported and corrected the soonest you can.

4. Create a list of auto lenders who specialize in serving people with bad credit.

The next thing which should be done is to have some lenders in mind. Make sure to narrow down your search only to those lenders who are known in the market for serving the needs of people with unfavorable credit score.

5. Before finally getting your loan settled, make sure you have applied to at least 5 lenders.

Create a list of at least 5 reputable companies serving people with bad credit scores and send applications to each one of them. As you go on with the application process, make sure to ask them about the amount which can be borrowed, as well as the length of the period at which the loan is to be repaid. Sending your application to more companies would increase your chances of getting the best possible deal.

Take note of the 5 steps earlier mentioned if you are looking for auto financing for people with bad credit requiring little or no money down.

Given a bad credit score, it will never be easy looking for favorable terms on an auto loan. A low FICO score can prove to be a heavy burden in your quest for the best possible loan deal. For a credit score below 600, you must be willing to exert that extra effort to find a good lender.

With your bad credit score, one thing which should be done is to look for deals on auto loan which would prove to be appropriate given any credit situation. Make sure that you are exerting more effort than necessary rather than just relaxing and hoping that a good deal will come your way.

There is a multitude of auto loan lenders in the market who specialize in working with people with different credit scores, regardless if it is good or bad. You just have to observe some measures need before you proceed with the actual application process.

If you want to find online auto loans for good or bad credit individuals, follow the 7 steps which are outlined below:

1. Pick the right car and be aware of your financial limits.

As you see a car dealer everyday on your way to work, you might have spotted a nice sports car which you dream of having someday. The good news is that there is actually no stated o written rule which says that you cannot be approved for a loan to purchase the car of your dreams.

Unfortunately, if your credit score happens to be below 600, you should be more practical and realistic with your choice of car. Make sure to pick one which is practical, meaning something which is cheaper. With this, the amount of the loan will be lower and there will be a higher chance of getting approved, given your low credit score.

2. Know your FICO score.

Reviewing your credit report is not a good activity especially if you are aware that you have an unfavorable credit score. But then, no matter how depressing it may seem, you need to carefully review your credit report before you proceed with the loan application. This will give you the opportunity to be prepared with whatever questions may be asked regarding the details in the credit report. In addition, it will also give you the chance to spot any erroneous content of the report and have such rectified immediately.

3. Ask advice from a friend regarding the choice of lender.

From within your circle of friends, see if there is someone who shares the same situation with you – having a low credit score, owning a car, and having a loan. Ask for good words regarding a reputable lender who specializes in the needs of people who are burdened by their bad credit score.

4. Start looking for lenders online.

If your friends were able to give you good suggestions, do not get contented. It would still be best if you conduct a separate search of potential lenders by going online. Make sure to search specifically for those lenders who serve the needs of people with bad credit or those lenders who specialize in working with people from any credit situation, be it good or bad.

5. Create a list of about 5 online auto lenders serving people with bad credit.

By listing at least 5 potential lenders, you are increasing your chances of being approved and getting the best possible deal. Make sure the 5 lenders you are giving consideration are reputable and have solid background.

6. Apply to at least 3 of the lenders you have listed.

From the lenders which were included in your list, contact and send application to at least 3 of them.

7. If one offer does not suit your requirements, move on to the next.

Every time you are confronted with an offer, make sure that you always consider applying to the next, especially if your requirements were not initially met. You always have other choices. Make sure to finish all the companies in the list you have created before finally getting settled with your option.

For many people, auto refinancing was not given any consideration at one point of their life. Many are confined to the belief that the current auto loan, including its interest rate, is already a good deal.

However, auto refinancing is one option which can actually prove to be worth giving a try. There are no laws which prohibit refinancing even multiple times, and almost anyone can be engaged in refinancing an auto loan.

One of the things which is needed with an auto refinancing loan would be looking for a lender who will grant your application. In instances wherein a new lender can promise you a better interest rate, probably one which is lower, it would be best to move forward with that lender rather than being stuck with your current lender.

The interest rate which can probably be given to you will largely depend on two factors: the trend in the interest rate in the market and your current credit – or FICO – score.

If you are asking “What credit score do I need to refinance my auto loan?”, below are 3 things which should be noted:

1. For people with good credit score – usually those above 750 – applications can be sent to any and all auto refinance lenders.

Depending on your credit score, you will be able to find a lender in the market who can approve your application for refinancing. For people who are fortunate enough for having an excellent credit score, a score which is above 750, there is nothing much to worry above because almost any lender can handle applications for a refinance on auto loan given such credit standing.

2. For people with fair credit score, probably about 620, some research work will be needed.

If your score is above 620, it can still be classified as fair while a score above 660 can be classified as good. If your credit score falls within that range, you first need to know if there is something which you can do to be able to most probably increase your credit score. One good way to be able to make your credit standing better is by pulling a copy of your credit report from the credit bureaus. Once you have a copy of the report, carefully read all the details and look for any errors. Any error should be immediately reported so that it can be corrected. Once the corrections are made, wait for at least 1 month. By then, your credit score would already improve.

3. If your credit score is below 620, classified as poor, work hard to look for the best-possible deal.

Given a credit score which is below 620, it can already be classified as a poor credit rating. In this case, it is not easy to find a lender. However, the good thing is that it will still be probable that you can find an auto lender who can meet your refinancing needs. Make sure to apply to at least 5 potential lenders who specialize in serving the needs of people with bad credit score. Applying to multiple lenders will give you the better chance to compare.

One of the most common dreams many people hold dear is that of having their own home. This does not go to say, however, that it is wrong to rent or lease. There is just something special, even a feeling of fulfillment, about buying a home and calling it your own.

Having your own home is often driven not only by the pride of ownership of such property. For many people, this can also be equated to an unmatched investment which they can have for the rest of their life.

To be able to have your own home, at least for 99% of us, the easiest path towards acquiring such property is through being engaged in a mortgage. However, for those people who are credit-challenged, this is not an easy task to accomplish.

If you have a bad credit score, the good news is that there is no need to fret. There are many lenders in the market who specialize in the needs of people like you. If you are on the lookout for the best bad credit mortgage lender, take these 3 tips into consideration:

1. Decide on which is more practical for you: owning or renting.

Before you precede with your search for bad credit lenders, do some thorough thinking first. Make sure that you are aware of the consequences of owning a home, as it may prove to be a burden for many people. Make sure that you are aware of all the expenses which you might incur in the future as a consequence of home ownership.

2. Create a list of bad credit mortgage lenders.

If you have already given the idea a careful thought, and you have decided that home ownership is the best option, the next thing that you have to do is to look for lenders who advertise themselves on serving the needs of people with bad credit history. However, do not be easily convinced with their ads. Make sure to do some research as you list down at least 5 potential lenders.

3. As you proceed with the negotiation, make sure that you always have an alternative.

Negotiating with the lender is most likely to happen as you proceed with the application process. As you negotiate with the potential lender, make sure to keep in mind that the lender to whom you are negotiating is not your best option, at least, at that point in time. Think of having other alternatives in the market. This alternative could refer to two different things: either there is a better lender who can serve your needs or you can just continue renting as it proves to be the more practical thing to do.