The Fair Credit Reporting Act requires that when a consumer sends a dispute to a credit bureau, it should forward that dispute to the creditor reporting the inaccurate information. The credit bureau must give the creditor all information related to the dispute The creditor must then review the information and conduct an investigation into whether the report is accurate If the creditor determines the disputed information is inaccurate it must correct the description of the account The Consumer Financial ProtectionRead more
Health Impacts of Too Much Debt
Two recent studies document the serious health risks of not dealing with high debt levels. First New Study The latest study published in August 2013 from researchers at Northwestern University’s School of Medicine looked at the psychological and general health conditions of young adults between the ages of 24 and 32. The study found that adults with high debt had: increases in high blood pressure higher levels of perceived stress symptoms of depression Previous studies had found similar correlations betweenRead more
Former Bank of America Employees Claim They Lied About Mortgage Modifications
Bank of America Lied? It probably won’t come as a shock to homeowners with a Bank of America mortgage loan. In affidavits filed in federal court in Boston last month, several former Bank of America employees claimed they were told to lie to homeowners about the status of their mortgage modification applications. According to the former employees, Bank of America instructed them to lie about: if mortgage modification documentation had been received whether their application was being reviewed or theyRead more
Are You Going to Court in Chapter 13?
People who file bankruptcy almost never “go to court” in Chapter 13 or see a judge. The only mandatory hearing will take place about a month after filing. That meeting with the trustee provides him or her an opportunity to ask questions about the budget and proposed repayment plan. Cre A portion of the meeting usually lasts no more than five minutes. Although they may have to be there longer to wait their turn. The hearings are nothing to beRead more
Right to Cure Credit Card Debts
What Are Your Rights in Iowa? Iowa law requires a creditor to provide a debtor with a written notice of their right to cure a delinquent amount. This must happen before a lawsuit can be filed to collect a consumer debt. The notice must provide the debtor at least 20 days to pay the defaulted amount. The notice to cure also has to include a statement of the total amount to be paid, plus an itemization of the charges. FailureRead more
Independent Foreclosure Review Payments
Have You Received a Foreclosure Review Payment? Several clients have begun receiving checks as a result of errors made by mortgage servicers. Unfortunately, the payments don’t begin to cover the actual loss suffered by many who lost their homes to foreclosure. Or if they had to put up with multiple mortgage loan modification errors or problems. Nearly four million people are eligible for the payments. The payments range from $300 to $125,000 depending on the type of servicing error. Only aboutRead more
Will There Be More Chapter 11s?
Why More Chapter 11s? When the 2005 bankruptcy law was adopted by Congress it created a new “means test” that borrowers had to pass to qualify for a Chapter 7. Congress limited this requirement only to debtors with primarily consumer debt. Debtors who had incurred most of their debt from a failed business could avoid having to pass the means test in order to file Chapter 7. The provision allowed business debtors to file Chapter 7 even though their budgetRead more
Before You Agree to A Debt Management Settlement Scams… Read This
Each year, one of our clients discloses that before contacting us about bankruptcy they had tried to settle their debts with the help of a debt settlement company. In every case the company led our clients to believe their debts could be settled without the need for bankruptcy. Our clients had frequently paid thousands of dollars to the companies with little relief to their overall financial situation. What Happens In These Scams? Even if one or two of the debtsRead more
Burying Your Head?
The debt was so out of control she almost felt like she deserved the punishing phone calls she was getting from her creditors. In fact, she got to the point where she was just too frightened to answer her phone anymore. They found out where she worked and tried to reach her boss. They threatened to arrest her at her office. They called her names, used profanity and made her feel like a failure. Finally one day she said, “EnoughRead more
Credit Repair Scams
Late night television and the Internet is full of advertisements for companies promising to remove: bankruptcies judgments negative information from credit reports. Sometimes they even offer to help you create an entirely new credit identity. These promotions need to be approached cautiously though. In truth, no one can remove negative information from your credit report if it’s accurate. And some of the tactics suggested by credit repair companies are illegal or ineffective. Like applying for an Employer Identification Number underRead more