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Pre-Bankruptcy Pitfalls

February 16, 2009 By admin Leave a Comment

Because of the complexity of bankruptcy laws and the nuances involved, it is essential that you hire a skilled attorney to assist you in the process. We have found that our clients have common concerns and questions during the time period of considering bankruptcy to before the filing is official.  Below are some examples: How do I manage a bank account and loan from the same credit union? If you have a bank account at a credit union and you have an unsecured loan or credit card with that credit union, draw down the balance of that checking account to $50.00 before filing.  Because most credit unions cross-collateralize their loans to your checking account, they can take money out of your checking account to satisfy the unsecured debt you have with them.  Open up a checking account at another bank that you don't have a loan with before you file and have all of your direct deposits go to this account.  Make sure that this has been accomplished before you file. Can I … [Read more...]

Filed Under: Articles of Interest, Popular Articles, Recent Articles Tagged With: bankruptcy, chapter 13, chapter 7, qualify

Does My Credit Score Have Hope?

February 16, 2009 By admin Leave a Comment

One of the main concerns of my clients is their credit score.  Many of them have witnessed its decline and felt the effects of a loan rejection or higher interest rate on credit.   Often, the first thing they ask me is, "What will happen to my credit score if I file bankruptcy?" In most cases, after you file a Chapter 7 Bankruptcy and receive a discharge (which normally takes about 4 months from the date of filing) the credit scores actually climb up. This is true after a Chapter 13 discharge, as well.  However, typically, in a chapter 13, you don't receive a discharge until you finish the plan.  The plan ranges from 3 to 5 years. After I tell my clients this, the next question is, how can that be? Your credit report has probably already been damaged by late payments, no payments, charge off's, collections, repossessions and foreclosures or any combination of these.  Once you receive a discharge, these items show that they have been discharged in a bankruptcy.  The negative … [Read more...]

Filed Under: Featured Article, Popular Articles, Previous Featured Articles, gallery Tagged With: bankruptcy, credit, credit score, credit scoring

The Right Mindset

February 15, 2009 By admin Leave a Comment

I recently had a woman visit my office who was in her 50's.  Her husband had just lost his job, and he was having difficulty finding another job.  They were in financial distress.  She was really struggling, wondering if she should get a second job to pay her bills or if there was another solution. Bankruptcy was mentioned as a possible option for her, but she had difficulty pursuing it, primarily because of the moral or social dilemma it posed.  She and her husband had always paid their bills on time before he lost his job. They were a responsible, well-intentioned couple who just fell into a tough spot. She came to me with many fears and concerns about bankruptcy.  Would her bankruptcy go on a public record that could easily be accessed?  Could a future employer find out and not hire her because of it?  How much of a social stigma would be present? I patiently answered all of her questions and provided the information she needed to make more of an informed decision.  … [Read more...]

Filed Under: Articles of Interest, Popular Articles, Recent Articles Tagged With: bankruptcy, mindset

Re-establishing Credit? Avoid These Cards!

February 15, 2009 By admin Leave a Comment

After your bankruptcy, one of the last things you probably want to see is another credit card. Or you may be worried that no company will ever offer you another one, and you want to take the first offer that comes along. Whatever your feelings about credit, you will most likely need to rebuild your credit history if you ever plan on purchasing a home or car again.   Used correctly and responsibly, credit cards can be a great tool to help with rebuilding your credit. There are some things to be careful of when looking for a new credit card or if you have received an offer in the mail.  One rule of thumb:  if it sounds too good to be true, it probably is. Another:  ALWAYS read the fine print. Many companies market to newly bankrupt people.  They know you want to rebuild your credit and may pay large fees to get a credit card, thinking your fee is a deposit on their secured card.  They offer you a "guaranteed" line of credit, or promise that "you cannot be turned down", but … [Read more...]

Filed Under: Articles of Interest Tagged With: credit, credit cards, mindset