uncategorized

7 Things to Know About Rebuilding Your Credit After Chapter 7 Bankruptcy

master — Fri, 03 Jun 2016 18:16:23 +0000

7 Things to Know About Rebuilding Your Credit After Chapter 7 Bankruptcy master Fri, 06/03/2016 - 14:16

Seven things to know about credit score recovery

Image Source: Flickr CC User Linda Aslund

When you’re deep in debt that you can’t afford to pay, bankruptcy may be a fit solution. But what you get out of your bankruptcy depends on the effort you put into improving your finances after you get your discharge. Here’s a look at seven things to know about rebuilding your credit after Chapter 7 bankruptcy to guide you on your way to financial recovery.

#1 Write Yourself a Reality Check
You must make an honest assessment of what landed you in bankruptcy. Even if it was something out of your control – like a job loss or medical issue – knowing what caused the problem is an opportunity for better preparation in the future. Bankruptcy offers a fresh start, but you need to know what led to your previous financial issues so you can avoid or defeat them in the future.

#2 Correct Your Credit Reports – All Three
Make sure all accounts included in your bankruptcy petition are noted on all three credit reports (TransUnion, Equifax, and Experian) and that lenders are not reporting delinquencies every month as if the accounts are still open. Also, confirm there are zero balances on all accounts included in the bankruptcy. From there, continue to monitor your credit reports to ensure that older items fall off your report as they should.

#3 Establish Good Saving Habits
You need savings as a safety net against future financial problems. This includes both an emergency fund and retirement savings. You also need savings to help reestablish your credit after bankruptcy. You should be able to get a secured credit card and start rebuilding your FICO score within six to nine months of discharge – but secured cards will require a cash deposit.

#4 Establish Good Spending Habits
In addition to saving, controlling your spending is key. That means taking a hard look at where your money goes, what’s needed, and what fat can be trimmed. Now is the time to change any bad habits you’ve developed, get on a budget, and develop a conservative approach to spending that allows you to save and prevents you from over-extending yourself.

#5 Make Sure You Pay Everything on Time
Roughly 35% of your FICO score calculation is based on payment history. Paying on time and in full every month will help beef up that part of your score. When it comes to credit cards, paying more than once a month may be preferable. Thanks to online access and bill pay capability, you can make payments on credit cards every payday rather than waiting until the due date.

#6 Be Patient but Don’t Be Lazy
Another important component of your credit score is the length of your credit history. This means that the longer you have a credit account open, the more your score will boost. As soon as you can, post-bankruptcy, obtain a credit card (secured or unsecured) and start that clock ticking. You have to be patient when rebuilding your credit, but you should always be planning ahead.

#7 Don’t Expect Any Quick Fixes
If you’re tempted to have someone help you clean up your credit score after bankruptcy, such as a “credit repair program,” be careful. Bankruptcy will take care of your older accounts, and the residual cleaning you need to do – such as requesting old items be taken off or correcting accounts – you can do for yourself or work on with a qualified credit or bankruptcy attorney.
The bottom line is that rebuilding your credit score after bankruptcy will take a while. You can get started a few months after your bankruptcy is discharged, but it will be a gradual process. The good news is that people who are in debt and choose to file bankruptcy usually see their credit scores rebound much faster than those who don’t choose bankruptcy and continue to wallow in debt.
To find out more about the benefits of North Carolina bankruptcy, contact the Law Offices of John T Orcutt today. Call [sk-company-phone] now for a free, no-obligation consultation at one of our convenient locations in [sk-office-locations]. Plus check out Credit Score Keys for more information on rebuilding credit after bankruptcy.
Please read the original post on our affiliate site, BillsBills.

Blog tags

uncategorized

Why Your Credit Cards Got Out of Control And Are Crushing You

master — Tue, 18 Aug 2015 15:37:38 +0000

Why Your Credit Cards Got Out of Control And Are Crushing You master Tue, 08/18/2015 - 11:37

Consumer confidence is up in the US as are credit limits. As a result, debt is on the rise. According to Nerd Wallet, among US households with credit cards, the average credit card debt is near $16,000. All told, that's more than $901 billion, and it's on the rise month over month, but is down significantly from a high of close to $19,000 during the height of the recession.

Are you in over your head?
For many consumers, the $16k of debt is far too much for them to handle. And remember, that's just an average, and it can weigh differently on different households. For some people, $2,000 of credit card debt can be overly burdensome while, for others, $20k is no big deal based on their income and other debt. And it's not just the balance that matters but the interest rate and payment terms.

If you are in too deep, how did it happen?
There are several reasons that people get in over their heads with credit card debt. It doesn't get happen out of the blue – it's the result of a series of choices and consequences. Do any of these sound like you?

Lifestyle choices: Does the lifestyle you want to live exceed what you can afford based on your earnings? When people can't afford things they want with the cash they have on hand, they may indulge in credit spending.

Mental health issues: Do you have a compulsive disorder? Or perhaps manic depression or bipolar disorder? These and other mental health problems can manifest symptoms of compulsive spending that can get out of hand quickly.

Overcommitting: Are you a person who struggles to say no? Maybe you don't want to tell your kids they can't have the latest video game system or that you can't go to the movies. Or maybe you're the person people call when they need help, and you rack up credit helping them.

Medical crisis: Have you or a loved one had a medical emergency? A serious accident or illness can leave you with a pile of medical bills. You may swipe your card for copays, to purchase medication or help cover bills and expenses. You may struggle further if medical issues keep you out of work.

Unemployment: Have you or a loved one spent prolonged time out of work? Many people turn to plastic to cover expenses if they don't have enough savings to see them through a bout of unemployment. You may think it's okay because you'll just pay it off once you have your new job, but then weeks without a job turn to months and the bills keep piling up.

Financial emergency: Have you had a financial crisis? Sometimes things crop up that force us to max out our credit cards all at once. Did your A/C unit die in the heat of summer? Or your heater right in the middle of winter? A major home or auto repair can push your credit card up to or over the limit and make life hard.

What can you do about your excess credit card debt?
If your credit cards are maxed out, but all your other bills are current, you should be able to belt-tighten and handle the debt. Quit eating out, reduce your cable, brown bag it for lunch, and put all the money you can toward your highest-interest card to eliminate the debt. Then move on to the next highest interest rate card until you have them all at a zero balance. Then try not to carry any balances month to month.
Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

Celebrity Debt News: Rapper Ginuwine Is on the Brink of Bankruptcy

master — Mon, 17 Aug 2015 15:11:41 +0000

Celebrity Debt News: Rapper Ginuwine Is on the Brink of Bankruptcy master Mon, 08/17/2015 - 11:11

Rapper Ginuwine reported to be on the brink of bankruptcy - what happened?

Today we bring news of another big celebrity in big money trouble – rapper Ginuwine, otherwise known as Elgin Baylor Lumpkin. Despite a decade of platinum and multi-platinum selling albums, Ginuwine is drowning in most every type of debt and, according to his financial rep, is on the brink of filing bankruptcy. A couple of things seemed to have led to this financial conundrum and these are problems we can all understand.
Debt and Depression Around the time Ginuwine released his second album, his father killed himself and his mother died of cancer within a year. These were devastating occurrences and, as a result, he struggled with crippling depression and suicidal thoughts, Ginuwine admitted in an interview with Essence.com. Counseling from a family pastor improved his outlook but, very often, serious depression can impact the ability to focus, earn a living and keep your finances in order. This can happen to anyone. Debt and depression often cause one another and worsen each other.
Debt and Divorce Ginuwine, like so many people, has suffered debt problems related to his family situation. Prior to meeting his wife, fellow rapper Tonya Johnston (known as Solé), Ginuwine had a son from another relationship, three other unidentified children with three other women and then two children with his wife Solé plus two children his wife had before they married. This left him supporting eight children, which is a financial feat of its own. Their recent divorce, among other business matters, has left Ginuwine seriously in debt.
Debt and Job Issues While Ginuwine was once a top-selling R&B artist, his career has declined significantly. Decreased earnings combined with no decrease in family expenses spells money trouble for anyone and can often be worse when the money dries up. There's also a major lawsuit brewing against the rapper filed by the executive producer of his debut album “The Bachelor.” Robert Rieves alleged in a lawsuit that he is owed royalties from that album. These are debts tied to business and job problems.
Debt and Income Taxes Often when people struggle with finances – no matter what they do for a living or how much they earn – tax troubles naturally follow. This is also an issue for Ginuwine's financial circumstances. In addition to owing a pile of legal fees, the rapper is behind on taxes. His attorney, Bruce Beckner, issued this statement: “Mr. Lumpkin is very close to filing bankruptcy. He owes my firm a ton of money and a bunch of other people a ton of money. He owes Uncle Sam 300 odd thousand dollars in back income taxes.”
Debt and Bankruptcy In cases where someone goes through even one of these major financial issues, there can be dire results. Most bankruptcies are tied to major life events including illness or death of a loved one, divorce and income interruption. For Ginuwine, suffering all three of these major catastrophic occurrences, was more than enough to derail his finances to the point that bankruptcy seems like a viable option. When income drops but liabilities don't and there is no probability that income will rebound enough to catch up, bankruptcy can be a great help. If you have suffered a major life event and are no buried in debt you can't deal with, contact the law offices of John T Orcutt for a free consultation with one of our North Carolina bankruptcy experts today. Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

5 Money Mistakes That Can Wreck Your Finances (And How to Fix Them)

master — Sat, 15 Aug 2015 15:46:37 +0000

5 Money Mistakes That Can Wreck Your Finances (And How to Fix Them) master Sat, 08/15/2015 - 11:46

Do your bad money habits register?

Image Source: Pixabay

Some people seem to be born with an innate sense of money management. These were the kids who saved up most of their allowance, mowed lawns or babysat, and socked away all the money so they could buy their own car at 16. These are the same people who, as adults, have never paid a bill late, have immaculate credit and a robust retirement account. And then there's most everyone else. Unfortunately, for far too many consumers, financial common sense is not second nature, and it's not something that's taught well in schools.
Lack of financial education can result in bad habits that can wreck your finances for years to come. And to make things worse, one bad habit can often feed another and trap you in a cycle of debt accumulation that can be hard to dig out from under – but we can help. Today we look at seven of the most common money mistakes we see among our clients and how you can avoid – and even fix – these issues to get your money matters back on track.

#1 Don't touch your retirement (and be sure to invest)
Most consumers do not save enough for their retirement and underestimate the amount of money they will need to live on in their golden years. Plus, as Americans, we're staying in debt longer as we age which means our retirement funds aren't just used for living expenses, but to service debt and pay interest. Taking funds out of your retirement account to pay off debt is not wise – don't do it. Also, try not to borrow against those funds. And be sure to invest in your 401(k) with every payroll, at least to the extent that you max out your employer match, but hopefully much more!

#2 Don't carry balances on your credit cards
Ideally, you should never swipe your credit card for something you couldn't afford to buy with cash. If you buy an item with a credit card and don't pay it off in full that month, it's like you're taking out a high-interest loan. That's not a wise way to buy a TV, outfit, vacation, or computer that you want - you end up paying far more in the long run. Better to save up the money and buy when you can afford it. Using credit cards minimally then paying off in full each month will result in the best outcome for your credit score. Credit spending is one of the worst habits you can engage in and can wreck your finances.

#3 Don't take cash advances off your credit cards
Ordinary interest on credit cards is bad enough, but when you take a cash advance, your card issuer will usually charge a much higher interest rate on that amount. Card issuers will also often send “convenience” checks which you can write out just a like bank check. You can write it to yourself and deposit to your own bank account or write it to someone else, like to cover a bill, or to pay off a personal debt, or really for any reason. Convenience checks are also a cash advance and will result in higher interest charges. Shred these checks so you won't be tempted and never take a cash advance.

#4 Don't avoid filing your taxes
Even if you can't pay your income taxes, you should always file your tax return. That may sound crazy like you're just asking Uncle Sam to come after you, but it's the best approach. Why? If you don't file a tax return, the IRS files one for you, and they don't do a great job of it. They look at your income that's reported to them and give you just the standard deduction – that's it. This is called a replacement return and will result in the highest possible income tax assessment for your income scenario. Always file your returns even if you can't pay so that the statute of limitations on collections starts tolling.

#5 Don't ignore creditors
but don't believe what they say
You should never ignore calls or letters from a creditor or debt collector if you're behind on your debt. However, you have to take things they say with a grain of salt. You should educate yourself on what creditors and debt collectors can and cannot do. Check out the Consumer Financial Protection Bureau's website at CFPB.gov and browse for information on debt collection. If you get served with notice of a lawsuit for a past-due debt, that can't be ignored, and you must act. If a collector tells you if you don't pay, they'll have you arrested, that's a lie and can be disregarded. But you have to know the difference.
If you've made money mistakes to the extent that you're deep in debt and can't pay your bills, we can help. You don't have to live paycheck to paycheck, stressed out and feeling hopeless. Contact the Law Offices of John T. Orcutt to talk to a reputable North Carolina bankruptcy attorney today. Call (800) 899-1414 for a free consultation in Raleigh, Greensboro, Fayetteville, Wilson, Durham or Garner.
Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

Drowning in Student Loans? New Plan Offers Hope for Struggling Borrowers

master — Fri, 14 Aug 2015 15:46:37 +0000

Drowning in Student Loans? New Plan Offers Hope for Struggling Borrowers master Fri, 08/14/2015 - 11:46

Starting this Fall, millions more consumers with student loans will qualify for Pay As You Earn (PAYE), the most advantageous repayment plan for those with federal school debt. If you're struggling with student loans or are in default, this could be your chance to get current with an affordable payment plan. Getting into good standing with your student debt can boost your credit score, put an end to payroll or tax refund garnishment, and take a lot of stress out of your life. Here's what you need to know about the revised PAYE, called REPAYE, coming soon.

Who can use PAYE or REPAYE?
Formerly, only those who borrowed from the federal government after 2007 could use PAYE, and you also had to demonstrate financial hardship. If the negotiated rulemaking goes through as President Obama intends, both requirement would go away and most student loan debtors would be able to participate in the new program called REPAYE. It doesn't matter when you got your loans or whether they were used for trade school, undergraduate or graduate education so long as they are federal loans.

How much are payments under PAYE or REPAYE?
Payments cap at 10% of “discretionary income” no matter the amount of the debt. Discretionary income is the difference between the adjusted gross income (AGI) on your 1040 Tax Form and 150% of the federal poverty level for your family size. AGI is the number at the bottom of page one of your tax form after your income, exemptions for yourself, spouse and dependents, and certain deductions are factored. So if your AGI is $45,000, and you have a family of three, the poverty line is $20,090 times 1.5 = $30,135. From there, you calculate ($45,000 - $30,135) $14,865 in discretionary income x 10% = $1,487 = $124 monthly student loan payments (approximately).

What's the catch?
This low student loan payment amount means that you may be paying interest only and not chipping away at the principal. That can make the debt last longer. If you pay the standard loan payment, you will be done with your debt in 10 years. But if you can't afford to do that, PAYE can help you stay out of default. And, after 20 to 25 years of these lower, more affordable payments, the remaining balances will be forgiven. However, the amount forgiven will be subject to income tax liability.
So, for instance, say you owe $45,000 in student loans and can't afford the payments and you sign up for REPAYE. Your payments are low and affordable which helps you keep current (which is a good thing). But, because the payments were so low, interest accrued and the loan balance rose rather than fell. After 20 years of payments, you now owe $55,000. That amount is written off and it becomes taxable income in that year. That can represent a significant tax hit.
$55,000 in imputed income could result in an additional $10,000 (or more) in taxes that year - depending on your tax bracket. While that is a lot, when you compare the tax liability plus what you paid, to the total of payments you would have paid, you may find it's pretty comparable. And, the bottom line is, if you can't afford to pay your student loans under the standard repayment plan, getting onto REPAYE and in good standing is better than remaining in default or delinquent.
But if you are currently in IBR or PAYE, this expansion will mean one negative consequence for you that can be significant. The new plan will take into account both spouses' incomes for determining payments - even if you file taxes separately. In years prior, for spouses that filed separate tax returns, only the student loan debtor's income counted for purposes of PAYE/IBR payment plan calculations. This usually reduced the payments and now will very likely increase them. But, overall, the expansion will benefit more borrowers and so is likely a good thing. The new expanded REPAYE should be in effect within a few months. You can enroll by contacting your loan servicer. And if you are in default, this can rehabilitate your loans and bring you current.
Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

Are You a Compulsive Spender? Warning Signs and How to Get Out of Trouble

master — Tue, 11 Aug 2015 15:46:36 +0000

Are You a Compulsive Spender? Warning Signs and How to Get Out of Trouble master Tue, 08/11/2015 - 11:46

Roughly 20 million Americans are compulsive shoppers – and that's not just people who love a good bargain – but people who have an actual psychological issue that causes them to spend compulsively. It's a real addiction that often results in real debt just as other addictions like alcohol and drug abuse ruin finances. If you have an addition to over-shopping, you may have maxed out your credit cards and drained your savings, and this is not a good situation to find yourself in, but there's hope. Today we look at some of the symptoms and solutions.

Are you a casual or compulsive shopper?
According to Debtors Anonymous, you may have a compulsive shopping problem if you:
Don't return items you borrow from friends or family
Cannot pay your bills or meet basic financial obligations
Prefer to swipe with plastic than pay with cash
Live for the now with no concern for tomorrow
Have tons of clothes with the tags still on them

Who are compulsive shoppers?
Compulsive shoppers can be men or women, but 80% are female, and it tends to run in families. Men who are compulsive spenders tend to describe themselves as “collectors-.” The addiction usually manifests in the late teens or early twenties and will often continue until addressed through intervention or therapy. Surprisingly, even those with lower incomes are not immune to compulsive shopping - they just do it at the dollar store rather than the mall. Addictions have few boundaries. Clothing and shoes are the most popular items for compulsive spenders followed by jewelry, cosmetics, and household items.

Why are you a compulsive shopper?
Any number of reasons can cause addiction - that's a question for a therapist. It can be an issue from childhood such as abuse, poor role models, or may be to make up for a lack of something in your childhood or adult life. It's important to seek help just as you would for any other kind of addiction. In fact, those with compulsive shopping addictions may also be suffering from depression, alcoholism or substance abuse. And just like other addictions, there is a tendency to deny that there's a problem, make excuses and hide it. Compulsive shoppers to spend alone, as alcoholics tend to drink alone.

How does compulsive shopping make you feel?
Most compulsive spenders feel depressed, tense, bored or anxious prior to spending and then during the spending spree, there experience feelings of euphoria, but these don't last. This is much like the high that comes with using drugs – they fade and then to get the feeling again, another thrill must be sought. After the spree, you will likely feel guilt, anger, disappointment and stress. This is no way to last. Anytime you rely on external things for a sense of happiness - that's a warning sign.

What can you do about your shopping addiction?
You have to stop, and you have to seek treatment. Groups like Debtors Anonymous can provide support just like a 12-step program for alcoholics. Individual therapy can also help if you can afford it or have insurance coverage to help. You may also need to hand over your credit and debit cards to your spouse to make sure you can't buy and just keep enough cash on hand for your necessities. Other channels to purchase may also need to be blocked as well including your iTunes account and any other digital accounts.

What is the fallout from a shopping addiction?
A serious shopping addiction can leave you with maxed out credit cards, an empty bank account, no savings, no retirement funds, and owing money to family and friends. Also, your loved ones may be angry at your actions, and you may be estranged from them because of your guilt and their frustration with you. In short, as with an alcoholic or drug addict, a shopping addiction can wreck your finances and every aspect of your life.
Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

4 Reasons You May Not Want To Negotiate A Settlement on an Old Debt

master — Mon, 10 Aug 2015 15:46:36 +0000

4 Reasons You May Not Want To Negotiate A Settlement on an Old Debt master Mon, 08/10/2015 - 11:46

If you're being hounded by a debt collector on an older debt, it may be tempting to take whatever deal they offer just to get them to stop calling. The saying that “the squeaky wheel gets the grease” has persisted for a reason – it's true. The loudest baby bird will get the most worms. And the debt collector who makes your life the most miserable is most likely to get your attention and your money, but that's likely not the wisest route to go. Here are some reasons to slow down before you pay up.

#1 You can reset the statute of limitations – Debt collectors often get the loudest right before their options grow far more limited. In North Carolina, the statute of limitations to sue for most commercial debt is three years from the date of late activity (i.e. last charge or last payment). If it's been two years and 10 months since your last payment, you can expect a lot of noise to try and get you to send some money. If the debt collector can get you to send even $5, the statute of limitations resets!

#2 You can pay someone you don't owe – Most debt collectors buy accounts then buy accounts from other collectors third or fourth hand. Your unpaid debt may change hands many times over its life before it expires. Somewhere along the way, the legal right to collect that debt will likely not follow the list that's being sold. In fact, your debt may be sold to several collectors at once. Push back on loud collectors to make them substantiate that they have the right to collect on the debt.

#3 You can lower your credit score – If you have a debt that's older and is about to fall off your credit score, not making a payment is your best course of action. Once it falls off, it will stop negatively impacting your credit rating. But if the debt collector talks you into paying a small amount as “good faith gesture” and it resets your statute of limitations, you can look forward to another seven years of that credit transaction haunting your FICO score. And there's no way to undo this action once it's done.

#4 You can lower your score for longer – If a debt collector contacts you about an older debt and can talk you into paying a lump sum, this will also hit your credit score hard. Even though you're technically paying off the account, it resets the statute, so it will be on your report for another seven years. And second, it shows as payment for less than the full amount, so that lowers you score. And because it's in collections, that's two negative entries on your credit that will last for years to come.
When it comes to older accounts, often your best approach is to let the debt collectors continue to call and not cave in and make any payments and let the accounts fall off your credit report. To know when the statute of limitations expires, pull your free annual credit report and check the account they're calling about to verify. Also, be sure that the credit report is accurate. Sometimes creditors and debt collectors will try and keep the account active longer by showing activity at later dates. It should be the date of your last charge or your last payment. You may need to file a protest with the credit agency to fix it if the date is not correctly reflected.
Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

Should You Try and File Bankruptcy Without a Lawyer? 5 Points to Consider

master — Sun, 09 Aug 2015 15:46:35 +0000

Should You Try and File Bankruptcy Without a Lawyer? 5 Points to Consider master Sun, 08/09/2015 - 11:46

Are you living paycheck to paycheck? Are your debts so great that you are just scraping by each month and are so deep in unmanageable debt that you can't figure out what to do next? Has your life become solely about finances to the extent you're arguing with your spouse, grouchy with your children and distracted at work? Filing bankruptcy can help eradicate debt and turn your life around. But before you decide to try and DIY your bankruptcy thinking it's something you can handle yourself, here are five things to consider.

#1 You are likely not to save money in the long run
If you're thinking it will cheaper to file bankruptcy without an attorney, think again. First, the filing fees are identical whether you file pro se (for yourself) or with an attorney. The lawyer fees themselves are usually quite reasonable for a Chapter 7. And while you wouldn't have to pay these if you filed on your own, you could lose money in other ways that could see you paying more in the long run. For one, if you mess up your documents and your case is dismissed, you have to refile and pay another filing fee.

#2 You are likely not to have all your possible debt dismissed
Working with a North Carolina bankruptcy expert means they know exactly which debts of yours can be discharged and will make sure these are all included in your bankruptcy petition. Without knowing the law, it's likely you won't include a comprehensive list and will miss some debts that could have been relieved. That means those bills will still be hanging over your head, and that can end up costing you far more than an attorney's fee.

#3 You are likely to be in over your head with the court system
The court system is complicated and a hassle to navigate. And the judge and Trustee in your case will expect you to act as an attorney would. That means they will not spoon feed you information or assist you in any way. In fact, their hands are tied, and they can't give you anything that would be construed as legal advice. And even reading up on the law itself doesn't help you understand the way the court itself operates and what is expected of you.

#4 You are likely to lose out to creditors in case of opposition
Your creditors have the opportunity to show up to protect your bankruptcy filing at the 341 Meeting of Creditors. And when they get the bankruptcy notice, they'll see you're operating without an attorney. With you acting pro se, they may pounce and object to every possible aspect of your case so they can to try and derail you to keep pursuing you for the full amount of the debt. It's in their best interest to try and get your case dismissed so they can resume collections.

#5 You are likely to find you're in more stress rather than less
One of the reasons to consider bankruptcy is that it can offer you peace of mind – you get out of debt and can have a fresh start. But if you're trying to combat creditors, figure out how the courts work, interpret the law and complete lengthy documents, you're likely to find more stress rather than less. And if your case is dismissed and you have to refile, it can grow progressively more stressful rather than less as it drags on, and your debts are still there.
Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

Scam Alert: Watch Out for Calls Claiming to Be Your Credit Card Fraud Department

master — Sat, 08 Aug 2015 15:46:35 +0000

Scam Alert: Watch Out for Calls Claiming to Be Your Credit Card Fraud Department master Sat, 08/08/2015 - 11:46

There's a new credit card fraud that's once again spreading its ugly head again in North Carolina and across the country. This fraud can rob you of your credit card or debit card information which is then used to drain your account or max out your card. In today's scam alert, we tell NC consumers how this fraud operates and how to be on your toes, so you don't fall prey to it.

How the scam starts
You get a call on your cell or home phone saying it's an agent from VISA or MasterCard. They offer a name and tell you that they're calling from the “security and fraud” department or something similar. They may offer you a badge or ID number to try and make them sound more legitimate. They tell you that your card has been flagged for unusual purchase patterns or that your card has been frozen due to fraud.

The debit card version of the scam
In the debit card version of the scam, you get a call from a caller ID number that seems to be your bank. It's not. They tell you that your card was frozen due to suspicious activity. You are directed to call a number to order a replacement card. But when you call the number, that's just another scammer.
They ask if you purchased a certain dollar amount item from a particular place (perhaps an online store). Of course, you won't recognize it since you didn't buy it. If you fall for it and call the second number to get a “replacement” card issued, you have to answer enough questions for them to get your current card information or to engage in identity theft.

The credit card version of the scam
With the credit card version, they call and say your card has been used for suspicious purchases and has been tagged as stolen. They ask if you made a certain purchase (of course, you didn't) and then tell you they're opening a fraud investigation. They also make it sound encouraging by saying they're issuing a credit for the amount of the unauthorized charge. They usually then ask you if the card has been lost or stolen.
They usually then ask you to verify that you are in possession of the card. They will usually read off some of the numbers of your card and ask you to verify others and to verify the three-digit code on the back. They do this because, many times, scammers get part of your credit card information from pilfered receipts or other sources. They then ask for only the info they need to fill in the gaps. By the time the call is done, they'll be using your card for fraud.

How to prevent being scammed
If you get any call from your credit or debit card issuer, be suspicious. Sure, it may be a legitimate call, but you can't take any chances. You shouldn't ignore the idea that your card may have been hacked or stolen, you just can't trust a phone call or email. End the call immediately without providing any information.
Instead, call the number on the back of your debit or credit card and talk to fraud service or customer service and tell them you were contacted about fraudulent activity on your card. They can confirm whether the call was legitimate and take care of you. Alternately, you can log in to your credit card account online and look for any security notices and message security or fraud services from the website.
However, calling immediately may give you more peace of mind that your card is safe. If there's any question about the safety of your card, it's best to allow it to be closed down, and a replacement card sent to you. Of course this is an inconvenience but is better than being defrauded – particularly when it comes to your debit card since it's attached to your bank account.
Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized

Wells Fargo Chastised in Court for Poor Treatment of Bankruptcy Filers

master — Fri, 07 Aug 2015 15:46:34 +0000

Wells Fargo Chastised in Court for Poor Treatment of Bankruptcy Filers master Fri, 08/07/2015 - 11:46

If you bank with Wells Fargo and are considering filing bankruptcy, there's something you should know. The bank makes it a policy of freezing funds of bankruptcy filers as a policy. Stripping access to funds is not required under bankruptcy law and can push already cash-strapped consumers into financial ruin. But a recent court case in New York sided with the bankruptcy filer and chastised the mega bank for its poor treatment of the debtor.

When banks can legitimately freeze your money in bankruptcy
In some cases, a bank or credit union can lawfully freeze or even seize some (or all) of your bank account funds when you file bankruptcy. If, for instance, you have a car loan, personal loan or credit card issued by your bank, they can take your money when you file bankruptcy. Say you have $3,000 in your bank account that you were planning to use as your cash reserve to cover living costs while you go through bankruptcy. And say you have a credit card issued by the same bank where you have your money stashed, and you owe $3,500 on the card.
You file Chapter 7 bankruptcy then, a week later, try and swipe your debit card to buy groceries. Your card is rejected, and you're shocked. Then you log on and check your bank balance and find it is zero. Here's what happened. When banks offer credit to their customers, they have a right of offset written into the terms and conditions of the finance agreement. They can technically exercise this right at any time, but usually don't exercise the right. However, once your bank or credit union is notified that you've filed bankruptcy, they will likely exercise the right of offset and freeze then seize your funds.

When banks freeze your money in bankruptcy for no reason
But some banks make a habit of freezing money during bankruptcy even if you have no debt owed to them. They claim they do this to protect the rights of the Trustee and preserve your bankruptcy estate. But it's not required by law and they're just doing it because they can. Wells Fargo is one of these banks, but it's not the only one. And after Wells Fargo froze the money of one bankruptcy filer, he sued and won his case.
The victory was not a huge financial win since it resulted in just $25 in damages but did cover all of his attorney's fees. And, as the judge in the case harshly criticized the bank for its actions, it was a moral victory as well. The National Association of Consumer Bankruptcy Attorneys (NACBA) filed a brief in support of the bankruptcy filer. President of the NACBA, Attorney Ed Boltz is one of the attorneys at the Law Offices of John T. Orcutt. He fights to protect the rights of consumers in North Carolina through the law practice and all across the country through his work at the NACBA.

How to keep your funds safe during bankruptcy
North Carolina bankruptcy exemptions protect assets during bankruptcy, up to a certain amount, including cash in the bank, unless there is a right of offset. If your bank does freeze your funds, your bankruptcy attorney can fight to get them unfrozen, but this can take time you don't have if you were relying on that money for living expenses. The better strategy is to not let them take your money at all, and you can prevent it.
If you bank with Wells Fargo, Union Bank, or a bank/credit union where you also owe a debt such as a mortgage, credit card or other loans, prior to filing bankruptcy and as soon as possible, take the following steps:

Move your work direct deposit to a new bank that's unrelated to Wells Fargo or your existing bank or credit union
If you have income that will be exempt from the bankruptcy, such as social security, set that to be direct deposited into another account separate from non-exempt income
If you share a bank account with a spouse who is not filing bankruptcy with you, both of you should open new accounts separate from each other at a new institution
If you share a bank account with someone else, like a parent, you should have yourself removed from their account for now
Leave your other account open and with just a few dollars in it and then you can close it out after your bankruptcy is all wrapped up

Please read the original post on our affiliate site, BillsBills.com

Blog tags

uncategorized