Harassment from debt collectors, know your rights!

The Fair Debt Collection Practices Act was passed in 1977 to protect consumers from abusive debt collectors. Here's a closer look at the rules a third-party debt collector must follow when collecting a debt.

Contacting a debtor.
A collector may contact you in person, by mail, telephone, telegram or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.

Contacting a third party about your debt.
If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people but only to find out where you live, what your phone number is and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

Giving written notice.
Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe, the name of the creditor to whom you owe the money and what action to take if you believe you do not owe the money.

When a consumer doesn't owe the money.

A collector may not contact you if within 30 days after you receive the written notice you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

No harassment
Debt collectors may not harass, oppress or abuse you or any third party they contact.

Debt collectors may not:

• Falsely imply that they are attorneys or government representatives.
• Falsely imply that you have committed a crime.
• Falsely represent that they operate or work for a credit bureau.
• Misrepresent the amount of your debt.
• Give false credit information about you to anyone, including a credit bureau.
• Send you anything that looks like an official document from a court or government agency when it is not.

Debt collectors may not state that:

• You will be arrested if you do not pay your debt.
• They will seize, garnish, attach or sell your property or wages unless the collection agency or creditor intends to do so and it is legal to do so.
• Actions, such as a lawsuit, will be taken against you when such action legally may not be taken or when they do not intend to take such action.

No unfair practices
A debt collector may not engage in unfair practices when they try to collect a debt from you.

Debt collectors may not:

• Collect any amount greater than your debt, unless your state law permits such a charge.
• Deposit a postdated check prematurely.
• Use deception to make you accept collect calls or pay for telegrams.
• Take or threaten to take your property unless this can be done legally.

Being Harassed?  Call me today!  I can stop the madness.  www.MarkCarterLaw.com

 

 

How to Buy a Home After Bankruptcy

Declaring Chapter 7 or Chapter 13 bankruptcy is often devastating and can turn your home buying plans upside down.

Going into bankruptcy shuts down your ability to borrow money or use a credit card, severely lowering your credit score. It will take some time to build back enough credit to apply for a new credit card or to take out a mortgage on a home. However, with proper preparation, patience and financial planning, you might be able to purchase a home sooner than expected.

Discharge and Organize
First things first: The bankruptcy must be discharged. If you are still in the process, or if you are still in credit counseling or any other program that takes over your finances, no mortgage lender will speak to you.

Once your bankruptcy is discharged, organize and scrutinize your credit report. If there are debts that have been paid back but still appear on your report, contact the credit agency and have them corrected. While you’re at it, check for other mistakes on your credit report. You are entitled to one free credit report from each of the big three credit rating agencies each year—Equifax, Experian and TransUnion. If there is an error, dispute it online via the particular credit agency’s website.

Use Secured Credit Cards and Installment Loans
The fastest way to start rebuilding your credit score after a bankruptcy is to prove to creditors and other lenders that you can be trusted to pay back the money you owe them. You can do this two ways: secured credit cards and installment loans.

A secured credit card gives you credit limited to the amount you have on deposit with the issuing bank. So, if you have $20 to $500 to place in an account with the issuing bank, then the bank will limit your credit each month to the amount of that deposit.

An installment loan is simply one where you make installment payments each month. It can be a personal loan, car loan or student loan. If you get an installment loan, then you only need to do one thing: make your monthly payments on time.

More Tips to Remember While Building Credit

• Use only a small portion of your credit. Don’t max out your credit cards and don’t apply for too much credit at one time.
• Move slowly and build up your credit with on-time or even early payments. When possible, pay back more than the monthly minimum.
• Pay all your bills on time and save money.
• Stay at the same job for a good length of time.
• Remove any outstanding tax liens.

Wait at Least Two Years
Here’s where you will need patience: You should wait at least 24 months after your bankruptcy is discharged to apply for a mortgage. You may be able to get a mortgage sooner but the terms, like interest rates, won’t be as attractive as they would be if you waited two years. Since you might be paying that mortgage interest for up to 30 years, you will save money if you wait long enough after the discharge to get a good interest rate.

Finally Applying For a Mortgage
After the two-year period, make sure you are fully prepared to apply for a loan. Your lender will want you to meet certain criteria before agreeing to lend you money: A good debt-to-income ratio, stability and time on the job. Money in the bank and no bounced checks help tremendously, of course. Any retirement plans or 401(k) assets makes your credit look good as well.
And remember, a big down payment carries a lot of weight. Keep that in mind during the two-year waiting period and save as much as you can.

Realtor.com

Visit www.MarkCarterLaw.com for more information.

Decide If Bankruptcy Is Right for You

1. Learn about the types of bankruptcy.For individuals, there are two main kinds of bankruptcy:

• Chapter 7 -- a bankruptcy where many, if not all, of your debts are cancelled outright in a short three- to six-month process.
• Chapter 13 -- a bankruptcy where you use your income to make payments on your debts over the next three to five years.

2. Consider alternatives to bankruptcy.
Things may not be as bad as you think. You may be "judgment proof" or you may have options you aren't aware of.

3. Make sure you are you eligible for bankruptcy.You may be prevented from filing for Chapter 7 bankruptcy if you have enough income to repay your debts in a Chapter 13 plan. Or you may not qualify for Chapter 13 bankruptcy if your debts are too high or your income too low.

4. Learn which debts won't be cancelled.Some debts, like child support obligations, cannot be wiped out in bankruptcy.

5. Consider what will happen to your home.Bankruptcy won't relieve you of your obligation to pay your mortgage, but it might make your mortgage easier to pay by getting rid of other debts. If you have substantial equity in your home, you might lose it if you file for Chapter 7, depending on how generous the exemptions laws are that are available to you. If you file for Chapter 13, you can keep your home and pay off any mortgage arrears through your repayment plan. (To learn more, see Your Home and Mortgage in Chapter 13 Bankruptcy and Your Home in Chapter 7 Bankruptcy.

6. Will you lose your car or other property?How much property you get to keep depends whether you've pledged the property as collateral for a debt, and on the "exemption" laws that are available in your state. If you file for Chapter 7, you might lose your car if you have substantial equity that isn't protected by your state's exemption laws.

7. Will your credit cards be paid off?Bankruptcy is good at wiping out most credit card debt and unsecured loans, unless you spent extravagantly or lied on your credit application.

8. Is your pension, IRA, or 401(k) safe?In most states, you will not lose pensions,retirement accounts, or life insurance in bankruptcy. If you have a pension, a 401(k), an IRA, or life insurance, find out what's protected in your state.

9. Will cosigners be stuck with your debt?If a friend or relative helped you get financing by cosigning a loan agreement, Chapter 13 bankruptcy will protect your cosigner, but Chapter 7 will stick them with any debt you don't pay.

10. Consider how bankruptcy may affect your personal life.Bankruptcy canbe intrusive -- you have to disclose every last detail of your finances to the court, and other people may find out about your bankruptcy. In a Chapter 7 bankruptcy, you can have property taken away, or, under a Chapter 13 plan, you might spend three to five years having to ask permission to spend your own money.

Bankruptcy will also have a detrimental effect on your credit score.

by: Albin Renauer

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Can I File Bankruptcy Just on Medical Bills?

Bankruptcy is all about treating all your creditors in various classes fairly. For example, the Court doesn’t want to see you pay Aunt Marge the $1,000 she lent you last year and not pay MBNA for the $1,000 you owe them. While you think Aunt Marge deserves the money more than MBNA (actually, I do too), it isn’t fair to let you pick and choose who receives payment, or give them what the Code calls a “preference.”

Since medical bills, credit cards, most personal loans, and some taxes are all considered “general unsecured debts,” they all have to be treated the same way. This means that all of your debt, not just medical bills, has to be included. It also means that you can’t just file on one or two credit cards, or on one judgment.

Visit our site for more information.  http://www.MarkCarterLaw.com

When Can I File Bankruptcy Again?

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There is no limit on the number of bankruptcy cases that one may file. In fact, there is no limit in between time frames to file bankruptcy. Nevertheless, if sufficient time between filings does not take place, you may be not be eligible for “discharge.”


So if a bankruptcy case is filed too soon, even though it will not be dismissed, a discharge may not take place. Why would anyone do this? Well there are several reasons to name a few.
If enough time has not taken place, but a debtor wants to eliminate their debt in a subsequent chapter 7 and has sufficient assets to do so, filing another case may be a good idea. Suppose a debtor has a messy asset(lawsuit, insurance claim, etc) but wants to use that to pay creditors. By filing another chapter 7, the trustee can liquidate that asset to pay the debts. Although the debtor may not be getting top value for the asset since the trustee only cares about getting enough money to pay the creditors, it may be worth the peace of mind for the debtor in not dealing with the asset and having the trustee in charge of converting it to dollars.

Or, maybe a debtor recently filed a chapter 7 and has remaining non-dischargeable student loans or taxes. The debtor could then file a subsequent chapter 13 and be protected for the next 5 years without any worries of lawsuits, levies, or wage garnishments, even though at the end of 5 years no discharge is entered. Then, maybe at that date, the debtor might also be eligible to eliminate the debt in another chapter 7 or 13.

In a nutshell, the time frames between discharge eligibility are as follows:

8 years between 7s. -727(a)(8)
2 years between 13s. -1328(f)(2)
4 years between a 7 and 13 -1328(f)(1)
6 years between a 13 and 7(if under 70% plan). -727(a)(9)

The time is counted from filing to filing — not from first discharge to second filing.
So don’t immediately give up on bankruptcy relief just because not enough time has passed. With a little pre-bankruptcy planing and creative filing techniques, you and your attorney can probably get you the relief you need!

Written by Michael G. Doan

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Bankruptcy and Divorce

All too often money problems lead to divorce.  So it’s normal that a bankruptcy (or two) will be part of the picture.

Should you file bankruptcy first, or wait until the divorce is filed or concluded?  A good question.  The answer depends entirely on where you live and what issues need to be resolved.

A married couple, even if they aren’t living together, can file  together.  After the divorce, they can no longer do that, so two cases might need to be filed. Thus, you can save a filing fee if you file before the divorce. But, and this is a big but, you can’t expect to maintain a Chapter 13 bankruptcy if you are divorced.  So, it’s best to talk to a competent bankruptcy attorney and be completely honest about the domestic situation before filing.  And, you might find that the attorney, upon learning that a split up is imminent, won’t represent both of you, because of the potential conflict of interest.

Additionally, if you are still living together, the income of both spouses, at least to some extent, will need to be included in the calculation of the means test to determine if a Chapter 7  is a viable alternative. So, if the combined income is too much, it might be better to wait until you have separated before filing.

Generally, there are three things that get sorted out in a divorce: property division; child custody; and spousal and child support.   The automatic stay in bankruptcy will stop any property division but won’t stop the determination of child custody or the payment of  support.  Thus, if you file for bankruptcy before the property is fully divided up, that process will go on hold for a while.  Since the determination of property rights includes the payment of debts, the bankruptcy will often help resolve some of those issues.

If your marriage is breaking up, it might be nice to clean up your debts too and get a true fresh start.

Bankruptcy Law Network

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How to get student loans forgiven

Conventional wisdom has it that student loans, whether federal or private, are impossible to walk away from. However, recent research shows that's not the case. Jason Iuliano, a Princeton political science Ph.D. student who also has a degree from Harvard Law School, did a comprehensive search of bankruptcy cases in which borrowers sought to discharge student loans; he found that in four out of 10 cases, judges erased all or part of the debt. Here's the rub: Only 0.1 percent of student loan borrowers who declared bankruptcy actually tried to get their loans forgiven!

If you or a family member are struggling under financial pressures and have student loan debts that you can't pay, you should first pursue a break from payments, known as deferment or forbearance, or an income-linked repayment plan such as Pay as You Earn, which I discussed in a previous column. However, here's what you need to know about taking the last resort to get rid of your debts.



Student loans aren't dischargeable under normal bankruptcy proceedings. You have to file a separate suit, called an adversary proceeding, that is like a mini-trial within a bankruptcy case.

Most courts use something called the Brunner test to decide if your student debts cause you "undue hardship," which is necessary for getting all or part of the loans written off. The Brunner test requires proving three things in your adversary petition: first, that you cannot maintain a minimal standard of living for yourself and your dependents while making your loan payments; second, that this situation is likely to persist (sometimes called the "certainty of hopelessness"); and third, that you have made a good-faith effort to repay your loans. Typically, the lender, like Sallie Mae, offered the borrower a settlement out of court. He believes that if more people were aware of the adversary proceeding option, there would be far more cases of getting federal loans forgiven.

If you have private (sometimes called "alternative") student loans, Richardson has a final piece of advice. Private lenders are usually pretty unwilling to negotiate. "You have two choices: pay or not pay," he says. And the loans, like federal loans, are not discharged in bankruptcy. However, if you really can't pay, the lender will have to take you to court and get a judgment in order to collect. After a few years, if the bank doesn't take the time to pursue you, the statute of limitations on the unpaid debt will run out. And seven years after you first go into default, the incident should be expunged from your credit report. In no way is this a recommended course of action, but if you truly have no other choice, it's good to know that your life doesn't have to be over because of an ill-considered student loan.

By Anya Kamenetz, Tribune Media Services | The Savings Game

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www.MarkCarterLaw.com 

Credit Repair Scams

Common Credit Repair Scams

Getting a New Social Security Number - Individuals are only permitted to have one Social Security number. It is against the law to use a different Social Security number to create a false identity.

Getting a Federal Employer Identification Number (abbreviated as EIN or FEIN) - Proponents of this "file segregation" scam claim that you can obtain a federal tax ID number, as if you are a business, then get a clean credit record under that tax ID number. It is against the law to use an EIN to set up a false identity. Further, a new credit report under an EIN will not show any credit history. It is unlikely that a creditor would regard a new business with no credit history as a good credit risk.

Challenging Every Negative Entry on a Credit History - As a general rule, it is lawful for credit agencies to keep accurate records of negative entries on your credit history for up to seven years, and to keep records of any bankruptcies for up to ten years. There are certain circumstances where truthful negative information may be reported beyond those time periods. As much as you do not like having negative information on your credit report, your ability to object to inaccurate information is not meant to be a license to harass honest creditors in an effort to remove accurate negative entries.

Common Misrepresentations by Credit Repair Companies

"If you have declared bankruptcy, you can't get credit for ten years" - The truth is you can start building a positive credit history as soon as your bankruptcy is resolved. While creditors will be cautious at first, you can gradually demonstrate your fiscal responsibility, and build a history that can lead lenders to view you as a good credit risk long before the bankruptcy drops from your credit history.

Warning Signs of a Bad Credit Repair Company

Do not use any credit repair company that doesn't follow industry standards or regulations.
Do not use a credit repair company that offers to "wipe out bankruptcies", to remove accurate negative information from your credit history, or to obtain credit for you regardless of your credit history.
Do not use a credit repair company that promises to exploit "secret" or "little known" loopholes in the system to remove information from your credit history.
Do not use a credit repair company unless it provides a written disclosure of your rights in relation to your credit history before asking you to sign a contract. The contract should include all the terms and conditions of payment, a detailed description of the services to be provided, including any guarantees of performance and an estimate of how long it will take to perform the contract. The agreement should also include a right to cancel lasting at least three days, in case you have second thoughts.
Do not use a credit repair company that attempts to charge money before it has performed the credit repair services.
Do not use a credit repair company that discourages you from directly contacting the major credit bureaus.

Removing Inaccurate Information From Your Credit History

Although the process can be slow, it is relatively simple to object to inaccurate information on your credit history.

After you obtain a copy of your credit report, review it for any inaccuracies. If you don't understand some of the entries on the report, ask the credit reporting agency what they mean.
Once you have identified any inaccurate entries, notify the credit bureau about the entries you believe to be in error, providing as much information as you can about the error. For example, if you paid a debt which is reflected on your credit report as delinquent, you may wish to provide a copy of a cancelled check reflecting payment. Once you make the report, the credit agency is responsible to investigate any errors at no expense to you, and to either verify the information in the credit report or to remove any information that is inaccurate or which cannot be verified.
You may also contact creditors directly, to let them know of any errors, and to ask that they correct their records and forward accurate information to the credit reporting agencies.
If you are unable to obtain the removal of information from your credit report, and still object to its inclusion, you may submit a written objection (up to 100 words in length) to the credit reporting agency, explaining your side of the story. The explanation will be included in your credit report, and will be distributed to anybody who obtains a copy of the report.

By Aaron Larson

Wage Garnishment Must Stop After a Bankruptcy Case is Filed; You Might Even be Able to Get Money Back

Bankruptcy Stops Wage Garnishment

The minute a bankruptcy cases filed,an injunction called the automatic stay is issued, which prohibits creditors from trying to collect on debts that were included in the bankruptcy. The Ninth Circuit Court of Appeals has called the automatic stay “one of the most important protections in bankruptcy law.” The automatic stay is self-executing, effective upon the filing of the bankruptcy case and requires that all collection calls, lawsuits and garnishments must stop immediately. Creditors who continue with collection efforts face stiff fines and penalties from the bankruptcy court. Section 362(k) of the Bankruptcy Code provides:

An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.

Reference National Bankruptcy Forum

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Can I be Denied a Job Because of Bankruptcy?

The Answer May Hinge on Whether Your Employer is Public or Private

I Need to File Bankruptcy, But I’m Worried About My Job…Can I Get Fired?

If you have a job, need to file bankruptcy, and are worried about getting fired because of it, you probably shouldn’t be. The bankruptcy code prevents employers from firing you just because you have filed for bankruptcy. However, if you are a job seeker, need to file bankruptcy, and are worried about being denied a job, you might have cause for concern. Under the current state of the law, a private employer can deny you a job if you are currently in or have filed for bankruptcy, whereas a public employer cannot. Section 525(a) of the Bankruptcy Code provides:

a governmental unit may not . . . deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title [Title 11] or a bankrupt or a debtor under the Bankruptcy Act 

Notice that section 525(a) applies only to public employers. The behavior of private employers is governed by section 525(b) which prohibits discrimination based on bankruptcy, but does not contain the language of 525(a) which addresses denying employment to a debtor based on a bankruptcy filing. The bankruptcy code has this to say about discrimination by private employers:

No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt

Reference National Bankruptcy Forum

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5 Ways to Deal With Financial Stress

1. Exercise
It may strike some as a bit strange that exercise would be first on the list. However, it’s really a simple equation: exercise relieves stress. Things always look brighter after a good workout. According to the Mayo Clinic, an exercise routine helps to increase the production of your brain’s feel-good neurotransmitters, called endorphins. Any exercise that gets your heart rate going will do: yoga, squash, tennis, running, basketball etc. Regular exercise can increase self-confidence and lower the symptoms associated with mild depression and anxiety. Exercise also can improve your sleep, which is often disrupted by stress; ever stay up at night wondering how you’ll pay the bills?

2. Prayer/Mediation/Mindful Living
Regardless of religious affiliation, a back to basics spiritual approach can help cope with stress. Take the time to focus on your breath. Ask yourself: of all my problems, what problem am I confronting NOW. Although it can be difficult, try not to immerse yourself in too many scenarios about the future. Deal only with what is on your plate, one day at a time. As Mark Twain famously said: ”I am an old man and have known a great many troubles, but most of them never happened.”


3. Full Disclosure
A routine bankruptcy case is stressful enough, believe me, you don’t want to see a “problem” case. For the debtor, bankruptcy is all about their debt. However, it is important to keep in mind that the Court and trustee are more concerned with assets. This post is intended to aid in relieving stress, so I won’t go through the parade of horribles that will ensue if your schedules are filed sans assets. Just follow one rule: tell your bankruptcy attorney about everything you own, you’ll be glad you did.

4. Don’t Go Through it Alone
One very common source of stress for bankruptcy debtors is shame. Many feel that bankruptcy represents failure. This simply isn’t true. Bankruptcy is a legal, ethical and entirely legitimate process which allows for a fresh start. Taking advantage of bankruptcy under the right circumstances is nothing to be ashamed of. To the contrary, it’s a sophisticated move, utilized often by multinational corporations and celebrities. Discussing your concerns with a close friend or family member will allow for an outlet to all the pressure that is building inside of you. Let it out! Worrying about what other people think should be last on your menu of concerns during a financial crisis.

5. Develop a Plan of Attack for Life After Bankruptcy
This is a big one. Putting together a plan of attack for your life after bankruptcy will be important, not only to relieve stress, but to thrive in your new debt free life.  Identify the circumstances that led to bankruptcy, and if possible, take steps to remedy them. Rebuilding credit will be a key, start by taking a look at the articles in the Related Posts section below. Knowing that you have mapped out the beginnings of a comeback will allow you to sleep better at night.

Lastly, try to remember that, while the bankruptcy process is not easy or fun, it has helped millions of people in this country get out from under impossible debt. Talk to a good bankruptcy attorney, disclose all of your assets, breathe, exercise, plan and you’ll get by……with a little help from your friends. Good luck!

Reference Bankruptcy Forum

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How Long Does it Take to File Chapter 7?

Typically, a Chapter 7 bankruptcy case is relatively quick to complete. Your bankruptcy case could be completed and discharged within 3-6 months of filing bankruptcy.

However, there are some important dates that can affect your right to file a case and obtain the relief available. The following filing timeline illustrates the relevant dates in the typical Chapter 7 bankruptcy case. We can help you see what details may affect your case.

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Can You Keep Your Car If You File Bankruptcy?

Many people who file for bankruptcy and own a car are allowed to keep it during and after their case, especially if it is used for getting to and from work.

If you are behind on car payments, you may be able to use bankruptcy laws to keep your vehicle in your possession.

Both types of personal bankruptcy address cars, car loans and vehicles you own outright:

• The automatic stay in bankruptcy is designed to stop repossession. In most cases, this goes into effect right after you officially file for bankruptcy.
• Chapter 7 bankruptcy exemptions may protect your car from a forced sale.
• Filing for bankruptcy under a Chapter 13 may allow you to repay your car loan at a more affordable rate so that you don't lose your car to collectors.

How to Recover from Bankruptcy

Some people fear bankruptcy, others embrace it, and many people think it is an easy way out. It is really none of those. Bankruptcy must be viewed as the last resort and for many people it is. It is scary, but it should not be feared any more than the impending lawsuits and wage garnishments that are certainly in your future. It is also not an easy way out. Bankruptcy is a scarlet letter, something that will haunt you for years to come, but you can recover from bankruptcy if you truly want to change your life for the better.

Steps

1. Look at bankruptcy as a new beginning, not the end of the world. It is a relief from the prison of debt that you have been under. As long as you have learned how to be a good steward of your finances, bankruptcy can be a real life saver for you, your marriage and your family.
2. Avoid immediately opening up lines of credit. During the process and soon after discharge, you will probably start receiving offers for more credit cards and lines of credit. Do not take the bait. It is well known that you are no longer able to declare bankruptcy again for so many years, so these companies know they have you for at least that long.
3. Take a financial management seminar or classes. Bankruptcy might have been completely out of your control, perhaps from a major medical crisis and your insurance just did not cover it. Otherwise, perhaps you feel that you are a good manager of your finances, outside of that medical situation. Regardless of the situation that got you here, you will do much for your future by taking such a course.
4. Accept an offer for a department store credit card if you must. Unfortunately, after bankruptcy knocks your credit down to next to nothing, the catch-22 becomes that you need credit to build credit. If credit cards were your weakness or perceived means of survival, get a department store credit card rather than a regular credit card. In this respect, your purchases will be limited to just what the store sells.
5. Get a new car loan only if you need a new car and if you can afford the payment. If you must, get a cheaper used car loan. A car loan is a quick way to rebuild your credit.

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Filing Bankruptcy puts an Immediate Halt to Wage Garnishment

Filing Bankruptcy puts an Immediate Halt to Wage Garnishment

Struggling with debt can often go from manageable to a tailspin in a heartbeat. One of the most common ways this happens is when a creditor wins a judgment and is allowed to start garnishing your wages.

Millions of Americans live paycheck to paycheck, just barely keeping their heads above water. When a creditor begins taking money directly out of that paycheck, it becomes difficult to keep everything afloat.

Luckily, there is a legal option against aggressive creditors. Bankruptcy is designed to stop creditor collection efforts, including wage garnishment. If your paycheck is getting "hacked", talk to us about your legal options!

http://www.markcarterlaw.com

Buying a house after filing bankruptcy

When can I buy a house after filing bankruptcy? As a bankruptcy attorney, many of my clients are concerned that once they file bankruptcy they wont be able to buy a house. Or at least they wont be able to do so for the ten years a Chapter 7 bankruptcy stays on their credit report.

Truth is that many lenders shy away from lending money to people who have recently sought the protection of bankruptcy. But that actually doesn’t last very long. My clients find that after a year to a year and a half, the credit industry is back knocking at their doors with credit card offers, home loan offers, etc.

Recently, a client called 3 months after the bankruptcy filing and before her case was even closed, wanting to know if there was any reason she shouldnt accept the credit card offer she had just received!

Mortgage lenders generally look at three things to determine legibility to get a home loan: FICO score, regular income level, and the percentage of the purchase price you are able to put down. After filing bankruptcy, your FICO score will take a dip. Often that is caused by late payments more than the actual bankruptcy filing. Generally, with no overdue payments anymore, the FICO score comes back pretty quickly  a year or so.

The regular income level is based on your job and how long youve had it. Its easier to get a loan if youve been working in one place for a while on a steady income. The loan committee used to also take a close look at the amount your payments on the house will be in relation to your total income.
Thus, it used to be that you couldn’t get a loan if more than 30% of your income was going to go to the house payment. (Relaxing that standard so loans were given out based on 50 or even 60% on ones income level was one of the contributing factors to the mortgage crisis we are currently facing.)
Finally, the amount you can put down towards the purchase of the house makes a big difference. The higher the percentage of down payment, the more protection for the bank. (Allowing minimal or no down payments and relying on appreciation were also factors that led to our current mortgage crisis.)
So, what does this mean? If you want to buy a house after filing bankruptcy, you can. If may be you will need to wait a year or two until your income and expenses stabilize and until you can sock a few dollars away for a down payment, but thats probably a sound economic policy anyway.

Visit http://www.markcarterlaw.com today! 

Courtesy Bankruptcy Law Network

Rebuilding your credit after Bankruptcy

Don't despair if you have wrecked credit after filing for bankruptcy––you can take measures to rebuild it. Here's how to get your finances together, whether you've filed bankruptcy or you just need help stabilizing your money.

1. Open a new checking and savings account. If you do not already have both a checking and a savings account, open one of each at a local bank or credit union. 
2. Get a secured credit card. Once you have a little money put away, you can put some of it toward a secured credit card. A secured card functions essentially like a debit card in that you pay the bank the money beforehand, but your payments should be reported to all three major credit bureaus and go toward pumping up your credit score.
3. Get a retail or gas credit card. When you're back on track with a secured card, you can try applying for a retail or gas credit card.
4. Pay off your balance every month. You might have heard that carrying a balance is great for your credit score, but that's not necessarily true. Especially if you have bad credit, the credit bureaus want to see that you're capable of paying off the balance as often as necessary. Only buy what you can afford at the end of the month.
   
   
5. Get copies of your credit report from all three major bureaus. You can get one report a year from each bureau for free. Figure out where you are now, and where you'd like to be in two years. This can help you evaluate how drastically you need to restructure your finances.
   
6. Pay your bills on time. If you tend to be late paying your bills and incur late fees, now's the time to stop. Draw up a calendar with all of your due dates (or enter it into your phone), and check it religiously. Make sure the money is ready ahead of time, and try to mail payments or do online transfers a day or two ahead of the deadline
   
7. Dispute incorrect information on your credit reports. Make sure you follow up with any reporting agency who lists incorrect information on your credit report or who continues to allow discharged debt to appear on the report. To dispute incorrect information on your credit report listed by the bureaus listed above, you can use the online dispute form on Equifax, the credit maintenance services page on Experian, and the dispute section under the personal services category on TransUnion.
   
   
8. Budget for essentials. Sit down and figure out how much money you absolutely must spend every month. Try to be as strict as possible when it comes to differentiating between needs and wants––for instance, you might want unlimited texting but you don't need it to live. Once you know how much money you need to live, you can start figuring out how to leverage the rest of it toward rebuilding your credit. 
9. Use your remaining money to rebuild your credit. Whatever you have left over after you pay your living expenses can be used to rebuild your credit and purchase items that aren't absolutely necessary (such as entertainment, gifts, etc.)

Bankruptcy Basics

If you are thinking about filing for Bankruptcy, we understand how frustrating and complicated the process can be. If you are facing foreclosure, wage garnishments, harassing creditor calls, or just overwhelmed with debt. At BankruptcyLawfirms.com, our attorneys can represent you in all phases of your bankruptcy proceeding. They can walk you through every step of the way and keep you informed of everything you need to know about bankruptcy (Chapter 7 bankruptcy and Chapter 13 bankruptcy), as well as other alternatives for managing your debt. If you are filing for bankruptcy for the 1st time, we understand what you are going through, especially if you consider yourself a responsible hard working individual.

We know how the law works, what it can (and can't) do, and whether bankruptcy might be a good option for you. We are here to help you. You will receive a Free Evaluation to find out how bankruptcy works, what it can (and can't) do, and whether it might be a good option for you. You will talk to an attorney directly with specialized knowledge and experience in all areas of bankruptcy law.
We have the largest network of licensed bankruptcy attorneys across the United States. After selecting an attorney, you will receive one-on-one personal attention during the entire process. Let the law work for you and file for bankruptcy protection with someone you can trust.

Types of Bankruptcy

As an individual filing for bankruptcy, you'll most likely choose between two types: Chapter 7 and Chapter 13. Chapter 7 involves the liquidation of assets in order to pay back creditors, while Chapter 13 revolves around debt consolidation. Depending on your financial situation, our attorneys want to help you protect all of your assets. We will work on a custom plan to determine which bankruptcy is right for you.

Once you have made the decision to retain a bankruptcy attorney, going forward, you will no longer need to speak to your creditors. Your attorney, on your behalf, will effectively put an end to those annoying, harassing phone calls and letters. Once your attorney has filed on your behalf, "Automatic Stay" goes into effect. This will halt all actions by creditors to collect debts during the bankruptcy process.

Call us today - we can help!

http://www.MarkCarterLaw.com

In the News

ALBUQUERQUE, N.M. (AP) - A federal judge has ruled that employees of the Roman Catholic Diocese of Gallup can continue to be paid and receive benefits during bankruptcy protection proceedings.

The Albuquerque Journal reports that a Bankruptcy Court judge issued the order Friday during a hearing on the diocese's filing last week for Chapter 11 reorganization.
The diocese had announced in September that it planned to file in bankruptcy court because of mounting claims of clergy sex abuse.

The diocese includes parishes in six counties in New Mexico, three counties in Arizona and seven American Indian reservations.

Diocese attorney Susan Boswell says 105 people have been identified who may file claims in the case. Claimants attorney James Stang says fairness, justice and healing are issues in the case along with money.

Read more: http://www.myfoxphoenix.com/story/23997256/pay-continues-for-employees-during-bankruptcy-case#ixzz2l7Gz9Ald

For help with Bankruptcy visit http://www.MarkCarterLaw.com

You've declared bankruptcy. Now what?

Life after bankruptcy

• Adopt a no-frills lifestyle.
• Rebuild good credit.
• Pay all bills on time.
• Build up a savings account.
• Get a credit card and pay off every month.
• Focus on the end result: free of debt.

You have a fresh start, and some new challenges. Your credit rating, which probably wasn't all that great already, has taken a hit. The bankruptcy will stay on your credit report for 10 years. Lenders see you as a bad risk because you've legally written off at least some of your past debts. For a period of time you may not be able to get a loan or credit card. Once you do, the interest rates and fees attached will be punishing.

"The purpose of filing is a safety valve," says Roger M. Whelan, resident scholar of the American Bankruptcy Institute, a nonprofit professional organization. "Thank God, the day in which it was like wearing a blazing star on your forehead is over."

Slimmed-down lifestyle

If you've filed a Chapter 13, it means you're paying off some of your debts in what's known as reorganization. For three to five years, the court allows you a set amount to live on and a court-appointed trustee divides the rest among your creditors each month.
That means a very no-frills lifestyle. Sometimes it means changing the basics in your life, like how much you pay for shelter and groceries every month. And you can't take on new debt like a credit card or car loan without the court's permission. At the end of reorganization, your obligations are gone and your money is yours again. But the fact that you've declared bankruptcy, even though you paid back at least some of your debt, will stay with you for 10 years from the date you filed your case.

If you filed a Chapter 7, you walked away from most of the debt. Your salary is yours, if you have one, but the bankruptcy stays on your credit reports for 10 years. You have to start living on cash, rather than counting on any form of credit, and building an emergency fund is key.

It's the double-edged sword of post-bankruptcy life: mismanaging credit may have gotten you into trouble (or just magnified other problems), but you have to get credit to rebuild your financial life. After your bankruptcy has been discharged, you need to re-establish good credit, right away for a Chapter 7 or after reorganization for a Chapter 13. The rule of thumb: there are no rules. How fast you build back your credit will depend on a lot of factors that vary widely.

It also depends on what resources you have. Obviously, if you have a high-dollar income, you have an edge. If you managed to hang on to your house, paying your mortgage on time will improve your credit report, so long as you reaffirmed the loan while your bankruptcy case was active. If you did not reaffirm the loan, the lender will not report future payments to the credit bureaus.

Ironically, people who file a Chapter 7 may have an easier time re-establishing credit.

Courtesy Bank Rate

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