One of the requirements for filing Chapter 7 and Chapter 13 bankruptcy is the need to take a credit counseling course before and after filing. The credit counseling requirement was added in 2005 and is a silly and generally useless expenditure of time, but it’s not something to be feared. It can be done on a computer or over the phone and usually takes no more than 2-3 hours of time total for both courses. The cost for both coursesRead more
Don’t Make Bankruptcy Your Last Resort
The old adage is that consumers in financial stress should look to filing bankruptcy as their last resort. I’m sure the saying was created by lenders and others hoping to keep people from eliminating debt. But waiting to file bankruptcy can be dangerous. That’s why I think people in financial trouble should consider bankruptcy as a first resort instead. Figuring out how bankruptcy might help right from the onset of financial problems will make people better informed. It may helpRead more
Foreclosure in Iowa
Foreclosure is a scary word. The prospect of losing your home and having to find somewhere else to live can create a lot of stress. Foreclosure doesn’t have to be as frightening as it sounds if you understand how it works and how Chapter 13 bankruptcy can be used to stop the foreclosure and put you back on the road to keeping your home. Foreclosure Without Redemption The most common method of foreclosure in Iowa is called “foreclosure without redemption.”Read more
Chapter 13 bankruptcy
Chapter 13 bankruptcy is my favorite type of bankruptcy because of what a debtor can do to deal with debt. What is a Chapter 13? It helps a person reorganize debts and may be one of the best ways to save a home. Over a 3-5 year period, debtors make payments to a trustee, who disburses the funds to creditors. Unpaid debts remaining at the end of the 3-5 year period are discharged. Secure creditors will receive money by theRead more
Did You Know That Chapter 13 Bankruptcy Can Stop Foreclosures?
Government and lender mortgage modification programs have resulted in little success at helping people permanently modify home loans who are facing foreclosure. Many debtors tell of lenders losing paperwork, not responding to inquiries, misunderstanding modification program requirements and offering modifications that do little to respond to their needs. There are options available to people facing foreclosure. Some debtors have successfully challenged a foreclosure based on improper servicing by the lender. Others have used Chapter 13 bankruptcy to cure mortgage loanRead more
Too Proud to File Bankruptcy? Think Again.
Most people in debt are, at least initially, resistant to filing bankruptcy. Filing chapter 7 or chapter 13 is sometimes viewed as taking the easy way out, or looked at as a good way to ruin credit scores, or as a moral failing to be avoided. These feelings, combined with the inability to pay debts, result in a great deal of stress. The fact is that people do have pride, and no one wants to file bankruptcy if it canRead more
Sub-Prime Mortgages Reappear Under New Name
Do you remember this dirty word from not so long ago: “sub-prime?” In hindsight, its usage and manipulation by lending institutions catapulted our economy into the toilet…a move we’re still trying to recover from. With investors holding billions of dollars in properties they need to sell, two of the largest financial institutions, Wells Fargo and Citadel Servicing Corp., are back in the sub-prime game. Only this time they’re operating under the guise of a “Second Chance Purchase Program.” What DoesRead more
What Makes Up Your Credit Score?
Prospective clients often ask how their actions will impact their credit score. Much of what makes up the credit score is deliberately kept secret by the privately held corporation that developed credit scores. The three credit bureaus (Equifax, Experian, TransUnion) and individual creditors may also have different scores. Mainly, because they use a different credit score model or because not all creditors report to the same bureaus. But we know generally that the FICO score created by Fair Isaac is madeRead more
Credit Report Mistakes
The Fair Credit Reporting Act (FCRA) prohibits credit bureaus from reporting accounts that have been placed for collection or charged off for more than seven years. What Does This Mean For You? The creditor (known as a “furnisher” under the FCRA) is required to tell the credit bureau the date of the first delinquency because the seven years actually begins to run 180 days following that date. After the seven years expires, the debt’s “trade line” is supposed to ageRead more
Think That Pro Athletes Immune to Financial Trouble? Think Again.
Now that the Super Bowl is over (let’s not discuss the final score), high school and college athletes everywhere are dreaming of making it big in pro sports. Contracts worth millions of dollars are possible even for athletes not selected high in any pro draft. But, just like you and me and all of our clients, money problems aren’t foreign to even some of the wealthiest of pro sports players. In fact, there’s some evidence to suggest these wealthy playersRead more