Although “good” is a subjective term, we can clarify positives and negatives related to using debt consolidation as a method for debt management. Debt consolidation functions in a manner similar to refinancing a home mortgage; you’re trading one or more debts for a single new debt, typically one offering lower finance charges. Potential benefits associated with debt consolidation include:

• Streamlining debt management: Dealing with a stack of credit card bills and loan payments each month increases your chances of missing a payment. Credit card debt consolidation can help by rolling several balances into one.
• Cleaning house, and your head: If you’re stressing due to debt, using debt consolidation can help you regain some feeling of control. Paying off multiple debts with a debt consolidation loan or consumer credit counseling can eliminate problems with debt collectors calling you at home and work, along with helping you focus on paying off your debt consolidation balance in place of several credit card debts with changing balances and finance charges.
• Lower finance charges: When shopping debt consolidation loans, it’s important to compare the annual percentage rate (APR) for the debts you’re consolidating along with the APR for debt consolidation options you’re considering. Your goal is to consolidate debt to one account with a lower APR than the debts you’re consolidating. APR provides a more accurate estimate of actual debt costs because it includes interest rates, penalty fees and lender fees.

Debt management: Debt consolidation can help, or not

• Using your home for collateral: Unsecured debt consolidation loans can be difficult to find if you have bad credit. In today’s economic climate, with housing values declining, it may also be difficult to qualify for a home equity loan or line of credit with less than admirable credit. If your home has lost value, you may not have enough home equity to qualify for debt consolidation through home equity financing or refinancing your mortgage.
• Credit card balance transfers: Although these can be useful to consolidate a few low credit card balances, it’s easy to lose potential benefits if you fail to pay off your balance transfers prior to the expiration of the introductory period.
• More debt than before: This is a frightening scenario that can happen. Clearing up debts with a debt consolidation can provide a false sense of security which can lead to more debt. Credit card debt consolidation can lead to a vicious cycle of paying off, consolidating and incurring more debt.

Those struggling with debt can benefit from programs offered through non-profit debt consolidation programs. These programs can help you determine why you’re in debt, and establish debt management options through budgeting and affordable repayment plans.

««  Read More  »»

When you file bankruptcy you are supposed to list any current lawsuits you have against anyone else, such as a medical malpractice suit, as well as any potential claim against a third party which claim may later result in you filing a lawsuit. Your lawsuits and claims are part of the bankruptcy estate. The trustee can either prosecute the lawsuit in your behalf or he can sell the claim or lawsuit and distribute proceeds to your creditors.

Frankly, some people do not list potential claims and possible future lawsuits. They figure they can file a lawsuit after the bankruptcy is over and that the trustee will not find out about it. One problem with this debtor strategy is that the person you later sue can dismiss the lawsuit because you did not list the claim in your bankruptcy.

I read a post in the Los Angeles Bankruptcy Law Monitor about a court which applied the theory of judicial estoppel to defend a lawsuit by a plaintiff who had recently filed bankruptcy and did not list the potential lawsuit as an asset. In laymen terms, judicial estoppel means you cannot take inconsistent positions in different judicial proceedings. You cannot tell the bankruptcy court you have no claims and then assert a claim in civil court soon thereafter. In this case, the court dismissed a lawsuit because the plaintiff’s recent bankruptcy asserted that the debtor had no claims or reasons to sue anyone.

««  Read More  »»

Bad Credit Repair teaches Tim from Idaho how easy it (can be) to face up to and overcome bad credit challenges…that is, once Tim gets REAL about credit repair!

Tim, it’s your lucky day!

You’ve come to the right place for improving your credit and getting your “good credit” life back.

You really can improve your credit with good information and a solid game plan.

You do NOT have to clean up everything bad on your reports to get whatever it is you want from from “good” credit.

You simply NEED to do enough so you can get whatever it is you want from “good” credit.  This is what I told Tim from Idaho, who asked me for help.

WHAT YOU DON’T KNOW ABOUT CREDIT REPAIR CAN HURT YOU!

Tim, like many other people, believes credit repair only  is about finding the magical dispute letter. Firing off dispute letters WITHOUT strategy can get you sued!

Unfortunately, Tim makes other potentially dangerous assumptions about credit repair.

Question: Dear Mike, I am 39 and I want to face my bad credit. I don’t know exactly (yet) how bad it is but I know it’s in the 400s. Most of my debts are 8 years and older. I plan to have a buddy who works at a bank pull my credit for me. I want to find specific information on how to remove old debts from my credit report. (ex. To whom do I write my letters? What should my letters say? What exactly should I do, step by step?). I have heard about secured credit cards for improving credit. What do you recommend? Most of my debts 8 years and older are cell phone bills, appliance store credit, medical bills etc. . Thank you in advance for your help. I look forward to improving my life, with your help. –Tim, Idaho

Answer: Tim, do NOT allow your buddy to pull your credit reports…EVER! This has nothing to do with how close your buddy and you are. Instead, when someone else pulls your credit, you get penalized. Additionally, a bank pulls what is called a “tri-merge.”

Now, to have scores in the 400s, you must have other bad credit reporting OR you have no active credit in good standing.

• The older the bad credit, the LESS impact it has on your scores.

You say “most of my debts are 8 years and older.” These debts (probably) are BEYOND the statute of limitations on collecting. Do you understand what I’m saying about statute of limitations?

I don’t know in which state you live and/or incurred these debts. Confirm SOL in the state in which you LIVE.

Once you confirm no court action against you, dispute with ALL credit bureaus reporting (derogatory) credit account information. Steve mentioned disputing.

• However, do NOT expect credit reporting agencies to delete unverifiable or inaccurate account information from your reports w/o a fight. Fight?

Understand this, the BIG 3 make money (TONS of money) off bad credit reporting. They do NOT surrender this money w/o a fight…that is, firing back “verified as accurate” response letters. What do you think most people do when they receive a “verified” response letter?

That’s right…they give up their dispute despite being in the RIGHT! Credit bureaus WIN; consumer LOSES!

Step 1: Grab INDIVIDUAL copies of EACH of three bureau reports. They’re free. You won’t get your scores free, however. To discover how EACH bureau is reporting EACH account, you need to compare each account on each bureau’s report.

Regarding secured credit cards, I only agree (if)… you use the card & PAY OFF the balance EACH month. The other day, CNN reports First Premier Bank (a big player in “bad credit” credit cards) assesses customers 72% APR.

72%!!!!!! Absolutely do not carry a balance and this absurd APR will not matter to you.You have to be careful before applying for and accepting any secured card. Without question, all secured cards are not created alike.

Check out my CD for answers to your other common questions I get, 8 SECRETS TO A 680 CREDIT SCORE! Go to the top right of this page and enter your email address to check it out.

It’s likely you have more recent bad credit reporting, causing ugly scores in 400s. Otherwise, you have no active (good) credit countering the old, bad credit.

Hope this helps you, Tim, and everyone else seeing

Mike

Bad credit repair BEGINS with good information and a solid game plan. Clearly, you can do it on your own, and you do NOT need A+ credit to get whatever you want from “good” credit. That’s the best part. Please scroll down to the box to offer your suggestions to Tim. What works or doesn’t work for you?

««  Read More  »»

A prospective client from Miami wants to file bankruptcy. He is in the process of getting divorced. He and his spouse each has an attorney. The spouses have a tentative oral agreement for the divorce which agreement includes payment of $100,000 of child support in equal payments over a four year time frame. The client’s principal asset is a money market account with $225,000. He asked me if he can pre- pay the child support in a lump sum to dispose of his cash and then file Chapter 7 bankruptcy. After all, he reasons, the child support is a priority debt in bankruptcy and would have to be paid before his unsecured creditors.

It’s ok to pay a priority debt , like taxes, before filing Chapter 7 bankruptcy, but the debt has to be owed at the time its paid. Generally, a debtor cannot pay a third party money for future debts not yet due. Payment without bona fide debt is a form of a fraudulent transfer.

I think this debtor could structure his divorce settlement to include an immediate obligation to pay his wife $100,000. If the spouses negotiate an arms length divorce agreement they may include, as one of the many negotiated rights and obligations, a current debt of $100,000 0wed to the spouse for alimony or support. The client would argue that his debt was due now, or as soon as the final divorce agreement is signed, and that there was consideration for his immediate payment because it was one of many negotiated terms in a divorce resolution. If someone argued that the $100,000 legal obligation was structured for the debtor’s benefit as part of a “conspiracy” of the spouses, the debtor would point out that the divorce negotiation was adversarial with each spouse having their own attorney..

I’m not sure this alternative plan would work but it has a much better chance than simply pre-paying a debt due in smaller increments over a period of future months. Making future child support debt into an immediate priority debt and the debtor may be able to losing his cash in a bankruptcy proceeding..

««  Read More  »»

Question by russie001: Suing sister for money owed for truck and two loans not repaid.?
I sold my sister my truck that my mom bought me before she passed away. With estate money, my sister bought 2 brand new vehicles, then came to me stating she didn’t have money to pay for the truck she bought, and wanted me to co-sign on a new vehicle, and let Ford repossess the truck. I offered her my truck and we agreed $ 317.50 per month for 42 months ($ 13,335). She agreed on 1/14/06 to purchase it, and her husband and she signed a contract. I signed over title in good faith.
I have received $ 2000 in payments in the last 2 1/2 years. No payment over 1 yr.
Also, she owes me for two loans, $ 1000 for ? and $ 300 to refinance mortgage to have $ to pay me back. I’ve received $ 200.
She has ignored me and made excuses on why she can’t pay and traded my Ranger for a full size, 4 door, 4×4 truck, stating “Husband is working off the difference with dealer.”

What legal actions can I take to get my money?
What is the best & cheapest way? Small claims?
Do I have a case?
How can I get justice?

Best answer:

You have a case; may or may not be small claims specific to your area. Talk to the clerk of court’s office.

Add your own answer in the comments!

««  Read More  »»

A good credit score is very important for maintaining a very good history. This is very similar to maintaining a good driving record and so on. Most of the time people try their level best to maintain a high credit score rather than going beyond certain level. There are situation were your credit score can move below certain points. It might have happened accidently either due to the late payment of any bills. Also it can occur by mistake wherein your credit history will be marked poor by some factor which you may not even have known.

It is not possible to move further with poor credit history as it can cause lot of troubles in different sectors of life. Poor credit score can prohibit you from getting a good job apart from issues that arise when you try for any loans in any reputed financial institutions. As a result you will have to end up paying very high interest rate instead of very low rate with poor credit history. Also this can influence even the insurance sector where you will have to again end up paying high premium amount instead of low amount. In this way you will be definitely losing large amount of money unnecessarily and this can end you up in debt. This is the time you might think about getting your credit history corrected so that it lies in an acceptable limit. It may take long time if you try repairing the credit history by yourself. This can be easily achieved by depending on a firm that is performing the credit repairs.

There are many firms that are working with the sole aim of repairing the credit level as they understand the value of maintaining a good credit score. They are having certain specialized procedure by which they will be able to get the credit score repaired within short time span and you need not have to get worried any more about the credit history. They will take specialized steps to prove that your credit was mark down by an incorrect entry and the wrong entry will be deleted with all proof. You may not know at what time you will be facing troubles without good credit score and it is not possible to get it corrected within few minutes. Therefore the best approach is to repair credit scores then and there without postponing the work.

««  Read More  »»