My Civil Advocate

People are often surprised to learn that even after they file for bankruptcy, they still may receive letters from creditors and bill collectors for a month or two afterwards. In a perfect world, the letters would stop as soon as you file for bankruptcy. After all, when you file, you are immediately under the protection of the court and an automatic stay prevents any and all collection activities by creditors and bill collectors, including sending letters. However, because many creditors and bill collecting companies are large, bureaucratic organizations, it can take a good amount of time - maybe even a couple of months - for a notification from the court to get to the right department  of a big creditor and get entered into the system properly so that letters are no longer generated. So, if it's just a month or two after filing and you still receive some letters, it's most likely nothing to be worried about. There are times, though, when aggressive bill collectors will si...

In today's world, a lot rides on your credit report, and keeping that report up-to-date and accurate is extremely important. But do you know what errors or possible corrections to look for or how to go about cleaning up your credit report? First of all, go through the entire report and find any information that is out-of-date. This commonly occurs with unfavorable information that's over seven years old - such as lawsuits, judgments, criminal records, paid tax liens, late payments, or overdue child support. You should also look out for any bankruptcies listed that occurred over ten years prior and any credit inquiries over two years old. There's no sense in keeping that information on your credit report if you no longer have to. Your next objective is to clean out any inaccurate information. This can include incorrect names, addresses, phone numbers, birth dates, social security numbers, or inaccurate employment information. Other inaccuracies may included bankruptcie...

You have excellent credit, but you've racked up some substantial medical bills. Is filing for bankruptcy a viable option? Your good credit will definitely take a hit if bankruptcy is filed. On the flip side, if unpaid medical bills prompt a flurry of late-payment notices, and eventually the medical provider hands you over to collections or wins a court judgment against you, that doesn't bode well for your credit rating either. Filing for bankruptcy is a tool to help you regain your financial footing, but it should be a last resort. Explore other options first. For instance, make sure all your available insurance coverage has been utilized. In addition, if your bill (or a chunk of it) was for uninsured medical costs, your medical provider may offer a significant discount. Depending on your income, you may qualify for the Disproportionate Share Hospital (DSH) program, which affords you free or reduced-cost hospital care for medically necessary services. If filing for bank...

Teetering on the edge of foreclosure can be an unsettling experience, to say the least, but you have options to avoid it: Loan modification: Most lending institutions are open to changing the terms of your loan to make it more manageable. Foreclosure doesn't benefit either party. Repayment plan: If you are behind on mortgage payments, many lenders are willing to offer a repayment plan that enables you to make up missed payments gradually, not in one fell swoop. Forbearance arrangement:  If you financial difficulties are temporary in nature, a lender may agree to this process. The mortgage payer is granted a 3-6 month reprieve from payments. After this period, the payer resumes payments, plus some extra to make up for the skipped payments. Refinancing:  If the current mortgage rate is below what you're paying, your rate can be readjusted through financing to lower your payments. Short sale: If you owe more money than what your home is currently worth, short selling ma...

A payday loan is a short-term loan that is due to be paid back by the borrower's next payday, generally two weeks. The interest rates (or fees) or payday loans can reach staggering levels - 400 percent or higher. Typically, a person will wind up paying $10 for every $100 borrowed. Payday loans are made by some banks, loan stores, check cashers, and pawn shops. Payday-loan arrangements can also be made through various toll-free number and internet sites. The business through which a loan is arranged often requires your savings and checking account information, and that transactions be made by direct deposit- the money you lend and the money you automatically pay. Others accept postdated checks; if the check bounces, your fees continue to pile up. The lure of a payday loan is that no questions are asked and no credit checks are required. When a personal loan at a bank is difficult to qualify for, a payday loan seems like a harmless option- until the borrower falls behind on payme...

If you're pondering whether to utilize a Debt management Program (DMP) or file for CHapter 13 bankruptcy, consider the following: Many credit-counseling agencies have pre-arranged terms with credit card companies for repayment. The interest rate may be reduced, but there will still be interest to pay. Filing for Chapter 13 bankruptcy enables the debtor to pay off debts with zero percent interest and provides a legal means to eliminate debt. Income left over after a reasonable family expenses goes toward paying off your debts. Anything you can't be paid will be eliminated or discharged.  DMP's are dependent upon all creditors agreeing to the plan. If just one balks, it may throw a monkey wrench into the whole plan. Creditors have no influence on a Chapter 13 filing. These filings are approved by a court of law.  Most DMPs establish a budget and monthly payment amount. By the time arrangements are worked out with creditors, you might wind up having reports of late p...

Many people who file for bankruptcy are stressed over the potential impact it may have on their job. Relax. No employer- government or private- may legally fire you, demote you, reduce your salary, and so forth just because you filed for bankruptcy. That doesn't mean, however, that they cant fire you for other valid reasons while you're going through bankruptcy. An employer will often never even know that you filed for Chapter 7 bankruptcy. The only time they might uncover this knowledge is if a creditor has sued you prior to you filing and has obtained a judgment to garnish your wages. When you file for Chapter 7 bankruptcy, your employer will be notified to discontinue the wage garnishment. Regardless, it can't be used against you. If you have a regular job and file for Chapter 13 bankruptcy, the court may order bankruptcy payments to be automatically deducted from your paycheck, therefore your employer will know. In the hiring process, no government agency may ...