1. I can max out all of my credit cards right before filing for bankruptcy and never pay for what I bought.
A. Myth
B. Fact
2. I only have to list the creditors in my Bankruptcy that I do not want to pay back.
A. Myth
B. Fact
3. I will never get credit again after filing for Bankruptcy.
A. Myth
B. Fact
4. If I am married, my spouse and I have to file for Bankruptcy together.
A. Myth
B. Fact
5. Everyone will know that I have filed for Bankruptcy.
A. Myth
B. Fact
6. I will lose everything that I have if I file for Bankruptcy.
A. Myth
B. Fact
7. All debt is discharged in a Chapter 7 Bankruptcy.
A. Myth
B. Fact
8. Only deadbeats file for Bankruptcy.
A. Myth
B. Fact
9. You can only file for Bankruptcy one time.
A. Myth
B. Fact
10. Filing for Bankruptcy is hard.
A. Myth
B. Fact
Think you knew your Bankruptcy facts?
Find out now.
Friday, July 30, 2010
Friday, July 23, 2010
Buyer Beware of Debt Settlement Industry
The New York Times published an interesting article on June 18, 2010 by Peter S. Goodman titled The New Poor Peddling Relief, Firms Put Debtors in Deeper Hole. This article is a good read for anyone who is struggling with debt and considering calling a debt settlement company. Choosing a debt settlement agency should not be a decision taken lightly. Consumers must do their research. In Kansas the Office of the State Bank Commissioner, has a List of Approved Registered Credit Services Organizations.
“In the Kansas City area, Linda Robertson, 58, rues the day she bought the pitch from a debt settlement company advertising on the radio, promising to spare her from bankruptcy and eliminate her debts. She wound up sending nearly $4,000 into a special account established under the company’s guidance before a credit card company sued her, prompting her to drop out of the program.” (Goodman, 2010) Ms. Robertson filed for bankruptcy after the debt settlement company failed her. (Goodman, 2010)
Our office, also, has meet hard working families who have hoped to pay their debts through debt settlement companies. The programs did not work for them and they called our office seeking bankruptcy relief. Bankruptcy is not the right solution for everyone, just as debt settlement is not the right option for every debtor.
As the industry has grown, so have allegations of unfair practices. Since 2004, at least 21 states have brought at least 128 enforcement actions against debt relief companies, according to the National Association of Attorneys General. (Goodman, 2010) Consumer complaints received by states more than doubled between 2007 and 2009, according to comments filed with the Federal Trade Commission. (Goodman, 2010)
People who are overwhelmed by debt need to explore all their options carefully. Do not allow yourself to be taken advantage! Debtors must consider what options are best for their families now and in the future. It is also important for debtors to be realistic about their financial situations. Even if companies are willing to settle some of your debts, will you be able to pay the settled amounts?
Goodman, P. S. (2010, June 18). The New Poor Peddling Relief, Firms Put Debtors in Deeper Hole. New York Times .
This blog is designed for general information only on Bankruptcy, Estate Planning, and Family Law. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements.
Walden & Pfannenstiel, LLC is a debt relief agency, proudly helping people file for bankruptcy relief under the Bankruptcy Code throughout Kansas and Missouri.
“In the Kansas City area, Linda Robertson, 58, rues the day she bought the pitch from a debt settlement company advertising on the radio, promising to spare her from bankruptcy and eliminate her debts. She wound up sending nearly $4,000 into a special account established under the company’s guidance before a credit card company sued her, prompting her to drop out of the program.” (Goodman, 2010) Ms. Robertson filed for bankruptcy after the debt settlement company failed her. (Goodman, 2010)
Our office, also, has meet hard working families who have hoped to pay their debts through debt settlement companies. The programs did not work for them and they called our office seeking bankruptcy relief. Bankruptcy is not the right solution for everyone, just as debt settlement is not the right option for every debtor.
As the industry has grown, so have allegations of unfair practices. Since 2004, at least 21 states have brought at least 128 enforcement actions against debt relief companies, according to the National Association of Attorneys General. (Goodman, 2010) Consumer complaints received by states more than doubled between 2007 and 2009, according to comments filed with the Federal Trade Commission. (Goodman, 2010)
People who are overwhelmed by debt need to explore all their options carefully. Do not allow yourself to be taken advantage! Debtors must consider what options are best for their families now and in the future. It is also important for debtors to be realistic about their financial situations. Even if companies are willing to settle some of your debts, will you be able to pay the settled amounts?
Goodman, P. S. (2010, June 18). The New Poor Peddling Relief, Firms Put Debtors in Deeper Hole. New York Times .
This blog is designed for general information only on Bankruptcy, Estate Planning, and Family Law. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements.
Walden & Pfannenstiel, LLC is a debt relief agency, proudly helping people file for bankruptcy relief under the Bankruptcy Code throughout Kansas and Missouri.
Friday, July 16, 2010
Your Credit Report
An interesting article was published on Monday by the Associated Press regarding credit scores and their continued decline. This is timely information, as we talked about What Your Free Credit Report Saying About You just last week. If you have not already gotten a free copy of your credit report, we would encourage you to do so. And, if you happen to be one of the 43.4 million people that now have a credit score of 599 or less -- remember that you are not alone, help is available!
Friday, July 9, 2010
What is Your Free Credit Report Saying About You?
What is Your Free Credit Report Saying About You?
Today the credit world is driven by consumers’ credit reports and credit scores. Everyone knows that the consumers with the best credit scores receive the most favorable financing terms. The enticing automobile commercials with the attractive financing terms of 0.00% for 60 months apply only to well qualified buyers, meaning everyone else is at the mercy of their credit score. Accurate credit reports are essential for today’s consumers, so they can receive the best financing options available.
It is important for all consumers to understand how and what kind of debts are reported on a credit report. The information reported on your credit report will determine your credit score. The 3 major credit reporting agencies are Experian, TransUnion, and Equifax. Each of these agencies has helpful information on their websites to educate consumers on the issues surrounding their credit reports.
Each site also gives directions on how to handle disputes. When reviewing your credit report if you find a debt that is not yours or a debt being reported incorrectly, you will need to file a dispute with the credit reporting agencies (Experian, TransUnion, and Equifax). You will want to check that the problem is resolved with each of the credit reporting agencies. The credit reporting agencies are not responsible for correcting problems with other companies, because it is the responsibility of the credit company to fix the problem with all the agencies.
People usually want to know how long negative accounts stay on their credit report. All delinquent accounts are deleted from your credit report 7 years from the original delinquency date (the date the account first became delinquent and was never current again). Negative accounts can include: delinquent accounts, car repossessions, medical bill collection actions, foreclosures, settled accounts (resulting from a possible short sale, etc), charged off accounts, and collection accounts.
Positive accounts will stay on your credit report for 10 years. Positive accounts are reported longer for the benefit of the consumer.
Bankruptcy will appear on a credit report under the public records section of the credit report. This is the section where any lawsuits for collection of debt also appear. A chapter 7 bankruptcy will appear in the public records section for 10 years. A chapter 13 bankruptcy will appear in the public records section for 7 years. The accounts involved in the bankruptcy will be reported as “included in bankruptcy.” The bankruptcy will not affect how long the accounts will stay on your credit report; the accounts will be removed from your credit report after 7 years from their delinquency date just like any other negative accounts.
It is very important for everyone to review their credit report on a regular basis. The 3 major credit reporting agencies allow consumers to view 1 credit report from their company each year. This means you can view your credit report 3 times per year for free! Go to www.annualcreditreport.com to review one of your free credit reports today to ensure the information creditors are reviewing is accurate.
Today the credit world is driven by consumers’ credit reports and credit scores. Everyone knows that the consumers with the best credit scores receive the most favorable financing terms. The enticing automobile commercials with the attractive financing terms of 0.00% for 60 months apply only to well qualified buyers, meaning everyone else is at the mercy of their credit score. Accurate credit reports are essential for today’s consumers, so they can receive the best financing options available.
It is important for all consumers to understand how and what kind of debts are reported on a credit report. The information reported on your credit report will determine your credit score. The 3 major credit reporting agencies are Experian, TransUnion, and Equifax. Each of these agencies has helpful information on their websites to educate consumers on the issues surrounding their credit reports.
Each site also gives directions on how to handle disputes. When reviewing your credit report if you find a debt that is not yours or a debt being reported incorrectly, you will need to file a dispute with the credit reporting agencies (Experian, TransUnion, and Equifax). You will want to check that the problem is resolved with each of the credit reporting agencies. The credit reporting agencies are not responsible for correcting problems with other companies, because it is the responsibility of the credit company to fix the problem with all the agencies.
People usually want to know how long negative accounts stay on their credit report. All delinquent accounts are deleted from your credit report 7 years from the original delinquency date (the date the account first became delinquent and was never current again). Negative accounts can include: delinquent accounts, car repossessions, medical bill collection actions, foreclosures, settled accounts (resulting from a possible short sale, etc), charged off accounts, and collection accounts.
Positive accounts will stay on your credit report for 10 years. Positive accounts are reported longer for the benefit of the consumer.
Bankruptcy will appear on a credit report under the public records section of the credit report. This is the section where any lawsuits for collection of debt also appear. A chapter 7 bankruptcy will appear in the public records section for 10 years. A chapter 13 bankruptcy will appear in the public records section for 7 years. The accounts involved in the bankruptcy will be reported as “included in bankruptcy.” The bankruptcy will not affect how long the accounts will stay on your credit report; the accounts will be removed from your credit report after 7 years from their delinquency date just like any other negative accounts.
It is very important for everyone to review their credit report on a regular basis. The 3 major credit reporting agencies allow consumers to view 1 credit report from their company each year. This means you can view your credit report 3 times per year for free! Go to www.annualcreditreport.com to review one of your free credit reports today to ensure the information creditors are reviewing is accurate.
Friday, July 2, 2010
Estate Planning Letters Of Instructions
Last week we left you with one option for making sure that your affairs are in order. This week we are going to take a look at some more practical suggestions.
Once you have had your Estate Planning Documents prepared and executed, you need to make sure that they are organized, safeguarded, and communicated.
One suggestion is to use Letters of Instructions. While your Last Will & Testament states to whom you wish your real and personal property to be distributed upon your death, a Letter of Instructions is a more informal document for which your family will be thanking you. Be sure to include not just names, but addresses and account numbers as appropriate.
Financial Details: You can reduce the stress on your family or executor if you have a complete list of all of your accounts, assets, and liabilities. It is difficult for your property to be divided, if it can’t be found.
o Income
o Bank Accounts – Checking and Savings
o Pension Plans
o Brokerage Accounts
o Retirement Accounts
o Insurance Policies
o Safety Deposit Boxes
o Business Ownership or Interest
o Mortgage / Loans
o Income
o Bank Accounts – Checking and Savings
o Pension Plans
o Brokerage Accounts
o Retirement Accounts
o Insurance Policies
o Safety Deposit Boxes
o Business Ownership or Interest
o Mortgage / Loans
Location of Official Papers
o Social Security Cards
o Marriage Certificates
o Birth Certificates
Your Advisors – Name, Address, and Telephone number
o Attorneys
o Accountants
o Insurance
o Doctors
o Religious
List of Family and Friends you want to be notified of your death – Name, Address, and Telephone number
Any animals or personal property that would need immediate attention upon your death
Any arrangements you have made regarding anatomical gifts
Funeral Wishes
o Beliefs or ideas you want expressed
o Pre-paid funeral plan information
o Service details that are important to you – who to officiate, what songs to be played, a charity to receive donations
Specific Personal Property Distribution. You can mitigate much of the family disagreements that arise by naming individual objects for particular people.
o Jewelry
o Furniture
o Photos
While you are the one responsible for creating and maintaining your Estate Plan, it is actually for the benefit of the loved ones you leave behind. Include as much detail in your Estate Plan as possible. Open the lines of communication today to avoid uncertainty in the future.
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