Friday, July 30, 2010

JUST SAY NO to debt collectors .

People who come to see me are worn out by debt collectors. It's understandable, they're called day and night.  Usually there's not too much they can do anymore about their financial problems. If you are facing debt collectors and losing sleep over the stress of it all, you do have other options.

 Just say no. It is our right under the fair debt collection practices act to tell the debt collectors, don't call me anymore. When this happens you must send them a letter in writing.. I suggest that you mail it certified, "return receipt requested" so you have proof of its delivery. Once the agency receives your letter, its employees can only contact you one final time to explain what action they plan to take. If this is your story my hope is it's to help you. Just saying no, can give you a break from the stress. If I can help you please feel free to call

Wednesday, July 28, 2010

What is a credit rating and credit rating after bankruptcy

As I remember sitting in my high school government and civic class on how to be a good citizen I don't recall learning about credit scores. In fact they didn't teach it in law school either. These days though you are well served knowing a little bit about credit scores.

What's in a credit  score?
35 percent Payment History: "Having a long history making of payments on time and no missed payments on all credit accounts is one of the most important items lenders look for." 

·         30 percent Amount Owed: "This measures the amount you owe relative to the total amount of credit available. Someone   closer to maxing out all their credit limits is deemed to be a higher risk of late payments in the future and this can lower their credit score."
·         15 percent Length of Credit History: "In general, a credit report containing a list of accounts opened for a long time will help your credit score. The score considers your oldest account and the average age of all accounts."
·         10 percent New Credit: "Opening several new credit accounts in a short period of time can lower your credit score. Also multiple credit report inquiries can represent a greater risk, but this does NOT include any requests made by you, an employer or by a lender who does so when sending you an unsolicited, "pre-approved" credit offer. Also, to compensate for rate shopping, the score counts multiple inquiries in any 14-day period as just one inquiry."
·         10 percent Types of Credit in Use: "Your mix of credit cards, retail accounts, finance company loans and mortgage loans is considered."

One of the main questions I'm asked is, what happens to my credit score after bankruptcy? I've enclosed one of my videos to give you a quick overview. If you're considering bankruptcy take a look at it. 

Tuesday, May 4, 2010

Chapter 7 bankruptcy -Get Real Answers

If you are considering Chapter 7 bankruptcy the best advice and information you can get is person to person with a bankruptcy attorney. There is much about this type bankruptcy that depends on how you “package” your financial situation. There is many things you can do on the internet these days, figuring out if you "REALLY " qualify for bankruptcy isn't one of them. 

A “fresh start” or “clean slate”, Chapter 7 is a form of bankruptcy designed to let people (and sometimes businesses) get out of debt without repaying any of the “unsecure” creditors. While Chapter 7 also requires the person(s) filing go turn over to the bankruptcy trustee all “non-exempt” assets, skilled planning with an experienced bankruptcy lawyer can usually ensure all the filer’s assets are exempt (i.e., the filer gets to keep the property.)

 With Chapter 7, the Court, not the creditors, decides whether any assets should be sold to pay creditors.  While there is both an art and a science to actually completing the documents to be filed in a Chapter 7, much greater skill is needed to plan for minimum loss to the person filing.  If the person filing Chapter 7 can’t pay reasonably necessary living expenses and pay something to the unsecured creditors, the Chapter 7 filer should sail through the process pretty smoothly.

A Chapter 7 case must be filed in the venue (district) where the person filing has lived for the better part of the last 180 days.  Not surprisingly, the process requires the person filing to bare his / her financial soul to the court and the creditors.  All income, assets, debts and creditors must be disclosed.  Again, careful and skillful planning is essential!. Most bankruptcy lawyers will talk to you free at least the first time.Take them up on the offer, you deserve it.

Wednesday, April 21, 2010

Debt Collector Harassment-Protect your Privacy

When you are dealing with aggressive debt collectors and creditors it's important to be conservative about the information you give to them. I know that it is your intention to pay your debts if you can. If though debt collectors are calling you so much that you have decided to read my bankruptcy blog, it's time to ratchet up your approach with them.

Do not provide a debt collector with bank account information. If a debt collector requests you make payment over the phone just pass Don't make a payment that way, send it in the mail.When you make a payment over the phone you provide all your banking information to the collector. When they have your banking information if they sue you they can garnish your wages and get a judgment, without much work.

Make payments on debts that are not current by using money orders. Using money orders, you are protecting (at least to some degree) information about your bank accounts.

Be conservative about provideing  debt collectors with information about your current employment.  By not releasing this information to a debt collector, you will make it more difficult for a creditor to obtain a garnishment of your wages should a creditor obtain a judgment from a court against you. If you need please feel free to call me about aggressive debt collectors ,there is legal action that can be taken .

Monday, April 19, 2010

When to File Bankruptcy

Ninety-six percent of the people who consult with me just happen also to be candidates for filing Ch. 7 bankruptcy. This fact  has always been something that surprised me. Knowing if you qualify for bankruptcy and can file bankruptcy is not something you can figure out from the Internet.    How did these folks know
when to file bankruptcy?  How can you know when it is time to file bankruptcy?

A variety of ways.  Some realized it only after they had drained their retirement accounts trying to stay current on bills.  Others caught it when they were just starting to dip into their 401k and got an uneasy feeling about it.  Still others got really tired of the nasty phone calls from collection departments. For the badly harassed, some were losing sleep, their health - or, what feels worse, the health of a spouse - was declining. They worried about lawsuits, and some had already been sued.  The unluckiest of them had already had his or her wages garnished.

Chances are if you are feeling uneasy, melancholy, depressed or downright hopeless about your financial situation, you should go with your gut and get bankruptcy advice.  Your intuition is a really accurate barometer of which direction to take.