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 First of all, go through the entire report and find any information that is out-of-date.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...

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...

Identity theft is a personal violation with potentially severe consequences for the victim. Immediate action can make a difficult situation more bearable: Contact the "big 3" credit bureaus: Equifax, Experian, and the TransUnion. Get a copy of your credit report from each agency; review them thoroughly for accuracy and suspicious activity. Ask the agencies to a fraud alert and to attach it to your report. Call the police. Fill out a crime report at your local police department. Document who you talk to, phone numbers, dates, and time. Obtain copies of the police report; creditors will likely want to review it. Close out accounts that have been fraudulently accessed... or might soon be. Contact all creditors, banks, credit card companies, and other service providers with whom there has been fraudulent activity. Request that creditors report closed accounts as "closed at consumer's request." Stop payment on checks. If you've had checks stolen, contact o...

If credit card debt has you stuck in a financial hole, there are solutions at your disposal. First, take an in-depth look at your finances. Reduce spending where possible, take on a second job if necessary, and pay down your debt over time. It requires dedication, but its well worth the effort. However, if your income simply can't keep up with debt, you may have to consider alternatives. Debt management plans involve a third party - usually a nonprofit credit counseling company or a for-profit debt management company- that reviews your financial particulars and negotiates with credit card companies on interest rates, and sometimes balances. A single monthly payment is made to the third party, which distributes the funds for you. Make sure you thoroughly understand the fee arrangements. Negotiate with credit card companies. you may be able to slash interest rates or significantly lower your total balances, especially if you pay off a renegotiates balance with a lump sum. Up-fr...

The Equal Credit Opportunity Act prohibits creditors from discriminating on the basis of martial status -- or race, national origin, religion, sex, age, or because a portion or all of a persons income is derived from public assistance. Creditors may ask about most of this information in specific situations, but they may not use it when deciding whether to issue credit, or for determining the terms of credit. Legally, ability to pay and demonstrated responsibility in pay should be the only criteria that matters. By law, creditors cannot: Inquire about martial status of applicants for individual unsecured credit unless the applicant lives in or is using property as collateral that exists in a community property state Require the use of a married name; they must allow credit to be issued in a person's given name or a combined surname.  Terminate your account or require reapplication if you change your name or martial status unless there is evidence that you're unwilling or...