Government Austerity Programs and Budget Cuts are ALREADY Coming

Government Austerity Programs

I telephoned the Riverside Superior Court this morning. The outgoing message stated that “because of budget cuts, an operator is no longer available.”

That means that all of the people who used to have jobs answering phones at the Superior Court, no longer do.

How to Find Bankruptcy Attorney David Nelson’s Office

David L Nelson
Attorney at Law
24630 Washington Ave 202
Murrieta, CA 92562
951-200-3613 Phone
858-452-4500 Fax

I’ve been a bankruptcy lawyer since 1994 and I love getting you out of debt.

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6 Sneaky Things Collection Agents Do in Lawsuits to Get You to Lose Without a Fight

Collection Agents Make Used Car Salesmen Seem Downright Honest

So you’ve been sued by Capital One, Ford Motor, Midland Funding, Midland Credit Management, Cavalry Portfolio Service, Portfolio Recovery, Arrow Financial, Asset Acceptance, Cmre Financial, NCO Financial (insert your collection agent’s name here).

What happens next?

From the moment you are served the Summons and Complaint you have only 30 days to Answer.  If you don’t answer, you lose. The Summons is a court order stating that you must defend yourself in court or you will lose your case. The Complaint is your creditor’s paperwork describing why they think you owe them money. Your Answer is your written explanation which must be filed with the court saying why you don’t owe them the money they say you do, or not as much or not at all. Not filing your answer is called a Default.

Once you have defaulted, your creditor may obtain a Default Judgment against you. If your creditor is on the ball, it could have a judgment against you in about 2 weeks after that first 30 days is over.  But usually that’s going to take more like 4 to 6 weeks. So about 2 months after the date of service you’ve already lost and you didn’t even know it.

Judgments can be used to garnish wages, levy bank accounts, and put judgment liens on houses.  However, creditors cannot take those actions in California until 30 days after they have the judgment.

Most of the 6 sneaky things collection agents do involve getting you to default on each step of the way through the lawsuit until they’ve already levied your bank account.

1. They forget to serve you.

Impossible! They wouldn’t really do that . . . would they? It gets even better, when they’re filling out the proof of service or the paperwork they turn in to the court to say that they did in fact serve you, they forget that they forgot to serve you while filling in that proof of service too.  Okay, lots of people don’t like to talk about this because it’s so heinous but it does happen.

If you ever catch them, get ready to watch the lies fly. Mostly they’ll involve stating that you are lying about their lying. The fact that you were in Pennsylvania for a funeral and even have your cousin’s Facebook pictures to prove it will not deter them from saying you staged it like the Lunar Landing. I do want to stress that this is the rarest of the sneaky things and if it does happen, you’ll probably never prove it.

2. Serve you at your last address instead of your current address. 

This is a sort of No Kidding moment. Most of us have known someone who has had this happen. Or at least there is always someone who will say so. Often this is a mistake on the part of the person saying so, and no offense, but if you had a spouse or boyfriend/girlfriend that wasn’t working out, or roommates or teenage children, then perhaps it happened to you too. They might have lost it, thrown it away or forgotten to give it to you.

Nevertheless, so many of us have lost houses and moved perhaps even several times since 2007. You might have been served at a former address just because your creditor couldn’t find you. However, I know several people who clearly informed their creditors about their new addresses and in spite of that the collection agency digs up an address which was as much as 10 years old.

3. Make sure there is a bogus hearing on top of the summons and complaint for not serving you the summons and complaint on time.

This is in fact easier to do than it sounds. When the creditor is first supposed to serve you the summons and complaint they have only a certain amount of time to do it. If they don’t get it done, then the court issues a court order called an Order to Show Cause, or OSC ordering the creditor/collection agency to explain why it hasn’t served the summons and complaint on you already. When the court does that, it sets an hearing on the Order to Show Cause and that hearing is usually about 10 to 14 months later.  No, it’s not a trial.

Your collection agency knows that you don’t know an OSC from your own earlobes, and conveniently the court’s rules require that they serve the OSC on you too, so when they serve the OSC on you they put that on top of the summons and complaint.

So, what I hear over and over again, is “but my trial date isn’t until next year.” No, that’s not a trial date.  Even if you’re in small claims court, your trial will be in about 2 months. It will not be in 10 months or a year later.

Understand this, any hearing that far down the road which is on top of your summons and complaint is a ploy to lull you into complacency, and you fell for it. Next thing you know your check is a quarter short and your bank account is empty.  Besides which there is probably a judgment lien on your house.

4. Make sure there is a bogus hearing on top of the default judgment paperwork for not processing the default judgment against you on time.

This is in fact easier to do than it sounds. When the creditor is first supposed to process the default judgment against you, they have only a certain amount of time to do it. In processing that paperwork they are required to serve you copies of everything they file with the court. If they don’t get the default processed soon after the 30 days goes by after they served you the summons and complaint, then the court issues a court order called an Order to Show Cause, or OSC ordering the creditor/collection agency to explain why it hasn’t processed the default judgment against you already. When the court does that, it sets an hearing on the Order to Show Cause and that hearing is usually about 10 to 14 months later.  No, it’s not a trial.

Your collection agency knows that you don’t know an OSC from your own elbows, and conveniently the court’s rules require that they serve the OSC on you too, so when they serve the OSC on you they put that right on top of the default judgment paperwork.

So, what I hear over and over again, is “but my trial date isn’t until next year.” No, that’s not a trial date. Even if you’re in small claims court, your trial will be in about 2 months. It will not be in 10 months or a year later.

Understand this, any hearing that far down the road which is on top of your default judgment paperwork is a ploy to lull you into complacency, and you fell for it. Next thing you know your check is a quarter short and your bank account is empty.  Besides which there is probably a judgment lien on your house.

5. Serving your summons and complaint or sometimes even the judgment on you with a copy of the hearing date for the case management conference on top of it.

Some jurisdictions set a case management conference, or CMC when any case is filed in civil court. Some set them shortly thereafter. Some wait for the defendant to answer and then the court sets it and some wait for the plaintiff or defendant to set it. If the court where you live sets a case management conference soon, then the collection agency’s attorney puts it right on top.  Those conferences are usually set about 9 or 10 months later. No, it’s not a trial.

So, what I hear over and over again all the time is, (say it with me) “but my trial date isn’t until next year.” No, that’s not a trial date. Even if you’re in small claims court, your trial will be in about 2 months. It will not be in 10 months or a year later. But you’re not in small claims court, look for that page called Summons and read it carefully.

Remember that any hearing that far down the road which is on top of your summons and complaint or your default judgment paperwork is a ploy to lull you into complacency, and you fell for it. Next thing you know your check is a quarter short and your bank account is empty.  Besides which there is probably a judgment lien on your house.

6. Serve the wage garnishment and bank levy on you a week to 10 days after they serve them on your employer and your bank.

The reason for this is self-evident; Why give you time to empty your bank account or file a bankruptcy? The Court’s rules require that they serve you copies of the wage garnishment and bank levy, but you’re almost never going to get copies of them prior to your bank or your payroll getting the copies first.

There is a reason for this, in California, a served bank levy creates a lien in favor of the creditor against any money you have in your bank accounts. In California, a wage garnishment creates a lien against 25% of your pay check the moment is it served on the payroll department at your work. Even if you file your bankruptcy quickly, you may never get that money back. Don’t get me wrong, there are still a couple of things you can do, but they don’t always work.

By the way, if you’ve been to the bank and found that a judgment creditor has levied your bank account, then most likely your judgment creditor is also about to garnish your wages. Find yourself some money immediately and file a bankruptcy as fast as you can.

Likewise if you go to work today, and the HR Dept tells you your wages about to be garnished, then ask your Boss for a few moments to go to your nearest bank branch and empty your bank accounts. You must do this for all accounts that have your name on them except for limited circumstances such as social security deposit accounts.

If you share an account with your mom because she wants you to be able to access her account if she gets sick, you have to empty that one too. Or at least she does. Time to make some embarrassing phone calls. And I don’t mean later today when you get the chance or on the way home from work when you can get to it, I mean do it right now. Right now this minute. Leave your computer or put down the pad or phone and run to your bank and take out your money, right now.

DISCLAIMER: I’m only licensed in California in the Southern, Central and Northern Districts and this is not legal advice and you’re not my client until you have first called me and we’ve decided that you are and signed retainers.  

CALL 951-200-3613 to set an appointment.

What have sneaky creditors done to you?  Please post your stories in the comments below. Share this page.  

I see so many people who get caught unaware because they don’t know how civil lawsuits work.  Share It, Post It, Tweet It, Pin It, Plus It.

5 Ways Chapter 13 is Better than Debt Consolidation

First Way

Protection of the Automatic Stay when filing your Chapter 13 Bankruptcy is a much better solution than signing up for a traditional debt consolidation. The Automatic Stay is a Temporary Restraining Order prohibiting Collections!  The order comes from a federal court and therefore preempts or supersedes state laws allowing creditors to collect.

A Debt Consolidation program, is a wish and a phone call to beg the creditor not to sue you while you are in repayment.  While most creditors will play along, there are many that will not.

A Debt Consolidation is a mangy dog begging for scraps at the doors of justice.  “Stay Boy! There’s a good doggie!” 

Second Way

When your chapter 13 bankruptcy payment plan is completed in 3 to 5 years, your temporary restraining order is made into a permanent injunction called your Discharge Order. Even better these Court Orders have teeth.  If a creditor violates one of them whether during or after your bankruptcy, you can sue them in the bankruptcy court and they have to pay your attorney to sue them to get them to back off or even pay you back. When you hear the word “stay” think of the word “stop”.  The Automatic Stay stops foreclosures, repossessions, wage garnishments, bank levies, creditor harassment and driver’s license suspensions.  Debt Consolidations do not provide the same protection as that of a Federal Court Order.  Debt Consolidations can possibly help you reduce your interest rates if you beg. 

Third Way

Chapter 13 Bankruptcy forces your creditors to work with you and your attorney whether they like it or not.  While in debt consolidation which is voluntary, some of your creditors aren’t going to work with you.  The debt consolidators pretty much know which ones and under what circumstances they won’t work with you.  The debt consolidators that have been working the deal for a while should already know which ones are not going to play along.  But for some reason, they never tell you:    “Oh and by the by, Equable Ascent Financial (or Asset Acceptance or Your Creditor Here) is not going to take your offer and they’re going to sue you now.  But just keep paying the monthly payment so that I can take my percentage and pay the other creditors slowly but surely while you get sued.  And I also told them that you have a new address, but oh ya, I forgot to tell you that too, even though you didn’t move or anything . . . but just keep paying your monthly payments so that I can get my monthly percentage of your payments, okay, thanks.”  

Fourth Way

The Chapter 13 bankruptcy repayment plan reduces interest rates down ZERO 0% and can reduce principal balances down to as little as ZERO 0% on your credit cards, medical bills, personal loans to private lenders, even older taxes as well.  Debt consolidations outside of bankruptcy can reduce interest rates too, so long as the creditor in question goes along with it.  On rare occasions principal balances might be reduced too for the few creditors who decide to go along with it.

Fifth Way

Chapter 13 Bankruptcy can reorganize all of your debts, such as repaying and restructuring your recent back taxes, your missed house payments, and even spread the last 2 or 3 years on your car payments out over 5 years thereby reducing the car payments by half or more. Often even if you repay your credit cards and medical bills in full but cut the interest rate down to 0%, in every case I’ve seen, you will have a lower payment than if you go to a debt consolidator outside of a bankruptcy.

It seems Bankruptcy Attorney Lorene Lynn Mies has Retired Medically

The Bankruptcy Minute

A fine attorney and a nice person, Lorene Lynn Mies of the Bankruptcy Minute, has apparently medically retired.

She was one of Murrieta’s finest bankruptcy attorneys and I hope she’ll be well and back to her old self again soon.

I don’t know Lorene’s condition, but I have great respect for her as a person and attorney. I teased her once in a blog post that a minute was a short consultation and got an earful for it.

Bankruptcy Dismissed No Discharge

Case Dismissed without Discharge?

Now what?

You’ve done your whole case and do not have a chapter 7 Discharge because your attorney forgot to tell you that you are required to do a Debtor Education Course. The Debtor Education Course is also called a Financial Management Course. You must file a Financial Management Course Certificate with a coversheet called Official Form B23 prior to the end of your case. If you do not, your case is dismissed, but not discharged. That means that your creditors start coming after you again just like before your case started. They go back to suing you, garnishing your wages, levying your bank account and so on.

Is there anything you can do?

Of course there is, there are at least a couple of options, the first is to file a new bankruptcy case. No this is not the best option, it’s merely an option. Why pay in full over again for a whole case. So, try the second option, if you haven’t waited too long, then reopen your case and file the form. Reopening the case while not overly complicated, can also be done quickly in most cases. A couple came in last Friday, and they had their Discharge Order the following Thursday, today.

To reopen your case I must file a motion with the court, and request a 30 day extension for you to get your Debtor Education or Financial Management Course Certificates filed together with the Official coversheet or Form B23. Most judges will sign the order with their eyes closed unless you’ve waited an extremely long time. However, I’ve seen them routinely granted for cases where the case has been closed less than 4 to 6 months.

Unless you’re my client and you can prove to me that you didn’t know about the requirement to complete the course, then you’ll have to pay me to reopen the case, upload the order and upload the certificates. There is a $260 filing fee (at this writing) and the attorney’s fees for the rest of the work is $500 per case.

If you can prove to your attorney that he or she never told you about the requirement, then he or she should maybe reopen it for you. However, even if your attorney forgot to tell you about it, the Bankruptcy Court itself sent you a notice explaining the requirement. So, you’d have to be able to prove that your attorney didn’t tell you and that you moved and that your attorney knew that you moved and that your attorney knew that the notice was sent from the court and at the same time that he hadn’t sent in a change of address for you and on and on. In addition, many of the Bankruptcy Trustees will explain it to you at the hearings. So, pretty much, you will have to pay the fees to reopen the case. Often the attorney’s fees to reopen cases are high. Some attorneys charge as much as $1000 or $1200 to reopen your case.

Call me Attorney David Nelson 951-200-3613, we’ll get it done fast and affordable and get you your Fresh Start. Creditor phone calls and harassment will stop again, law suits and wage garnishments will go away. I’ve been a bankruptcy lawyer in Murrieta and Temecula area since 1994. I love getting people out of debt. But don’t wait too long, if you’re in this situation, call immediately because procrastination will hurt you if you do not get your discharge completed, creditors get to keep whatever they can collect from you before you get it done.

Google

Corporate Personhood

Legal Persons

Corporate legal personhood is good. If you owned a grocery store and didn’t incorporate, you’d very quickly find out how good it is while watching some plaintiff’s lawyer suck all your hard work out of your non-corporate veins.

Corporations have always been “legal persons” and that’s not going to change. It’s not different anywhere else.

Which Chapter in Bankruptcy is Right For Me?

Chapter 7 vs Chapter 13

I will endeavor to be brief.

The moment that you file your case, whether in chapter 7 or chapter 13, a temporary restraining order is issued by the bankruptcy court prohibiting collections of any type with a few exceptions. Exceptions include things like child and spousal support and certain types of government debts.

A chapter 7 bankruptcy, also called a straight bankruptcy, and also called a liquidation bankruptcy is the one that most people are thinking of and talking about when they discuss bankruptcy. Over in about 4 months, this is it’s primary advantage, you’re in and you’re out again.

In a chapter 7, you’re allowed to keep only so much property. Whatever you own over and above what you get to keep, the bankruptcy trustee takes away from you, liquidates or sells it, and uses the proceeds to pay your creditors a pro rata or proportional share of the funds based on the percentages of the total debt that’s owing from you to your creditors. Suffice it so say that if you owe $100,000 and the Trustee is able to collect $25,000 from your property, then your creditors will get about 25% of the debts that you owe them.

Most of you will keep everything you own and your creditors will get nothing.

Any portion of the debt left over after the trustee administers your case, whether it’s 95% of the balance or 100% of the balance that’s unpaid, that portion is discharged by the bankruptcy.

So in a small nutshell a Chapter 7 is a bankruptcy where the bankruptcy trustee may take property away from you (if there’s any to take) and when it’s over, your consumer debts are discharged or in other words, you receive a court order, called a discharge order, which is a permanent injunction prohibiting collections.

Remember that there are exceptions to the discharge. Certain kinds of debts are exempt from the discharge and will remain a personal obligation for you to have to pay once your case is over. Child Support, Spousal Support, Student Loans, Recent Income Taxes, and a number of things which are similar in nature are not discharged. You will still have to pay your mortgage if you want to keep your house, you will have to pay for your car if you want to keep your car as well. For more details (but only if you’re in California) and to discuss specific debts, call me 858 452 4500.

You must qualify for a chapter 7 by showing that your income is sufficiently low or that certain expenses are sufficiently high or both. This test is called the Means Test.

With Chapter 13 you get to keep everything. If you would have lost it in the chapter 7, you can still keep it in the chapter 13 as long as you pay the bankruptcy trustee for it instead of giving it to him and letting him sell it. A chapter 13 case is a bankruptcy with a payment plan. Payment plans last from 3 to 5 years.

The payment is determined by your income and expenses. If you don’t qualify for a chapter 7, then your payment is determined by what the means test states you have to pay.

There are other reasons you might file a chapter 13 instead of a chapter 7, in a chapter 13, you are able to propose a payment plan that allows you to catch up unpaid payments on your home and thus at the end of the payment plan, you are current on your first mortgage again. If you have a 2nd mortgage and your home’s value is lower than the balance on the first mortgage, then you may qualify to have the 2nd mortgage removed from your home.

If your vehicle is more than 910 past the purchase date, you can cram down or reduce the balance on the car to the car’s value. Arguably, that might not be much of a reduction after 910 days have gone by but I have seen it be as much as $5000 in principal and a reduction in the interest rate of about 5%.

Because Friends Don’t Let Friends Pay Credit Cards From Savings

Why Bankruptcy? Because Friends Don’t Let Friends Pay Credit Cards From Savings
Legal Notice: You are not my client, this is not legal advice, it’s a bunch of codswallop and hogwash, rely on it at your own peril, nor does reading this article make you my client. If you rely on this information and use it in your case and it goes badly for you, tough noogies.

So you’ve lost your job, broken your leg, gotten a divorce or someone has died.

You find out that on top of the $20K in credit card bills that you knew about, there’s another $30K that you didn’t.

I’ve heard all of this before.

Let this be a lesson to you, if you are letting your spouse do all of the finances, stop, wake up and smell the plastic. Go into the bills and read each one. If English is not your strong suit, bring a friend. Chances are, if only one spouse is ever doing all the accounting then that person may have bad things hiding in that pile of papers that he or she refers to affectionately as the bills.

No, it’s probably not a girlfriend or boyfriend, could be but probably not, but it could be a gambling problem or worse. And it could just be that after 15 years of spending $200 more per month than you earn, the total balances on all credit cards is now $36,000 higher than you thought. ($200 x 12months) x 15 yrs = $36,000. Of course it will be a bit smaller because of monthly payments or it could be a lot higher if some cards were used to pay other cards which usually happens after a few years of living that way.

I once had a client whose spouse had a gambling problem, that spouse had a friend who was a notary, who also had a gambling problem. They were partners in crime. While the innocent spouse was out to sea double entendre intended with the Navy, the stateside spouse and the in-cahoots-notary got together and created a 2nd mortgage and pulled all the equity out of the house and gambled it away while the innocent spouse was gone. Needless to say the innocent spouse also asked me if I do divorces, I don’t.

Face it, if you’re letting your spouse handle all of your finances, then guess what, eventually you’re going to end up alone and living la vida broke-a because you’ve only got a 50-50 chance of not getting divorced, but the other half end in death and either way, one or both of you ends up alone. I cannot begin to tell you how many widows and widowers I’ve met with who had no idea that the life insurance hadn’t been paid, had no idea that the cash value in the life insurance had been withdrawn and spent on girls, guns, boys, gambling, drugs, alcohol, and good times. More often, it’s like I stated in the first place, you’ve been living on $100 to $200 less per month and paying that difference with credit cards for the last 15 years, and I’ve seen that go on for 25 years as well. You’ve been just living a bit above your means, or your income.

So, you’re broke and alone and you realize that you’re not completely destitute, there’s some savings socked away somewhere.

Let’s say you find you’re left with $50K in debts on credit cards and unsecured loans, such as signature loans.

You’ve got $100K in your 401k plan, $20K in cash in the bank, some clothes, some furniture (no antiques or heirlooms), one 12 year old Honda Accord with a big rumple in the fender, you’ve got wedding rings that are 20 years old and you only paid $1000 for them back then (retail), your home is worth $200K and you’ve got a loan on it for $150K. And that’s all you’ve got.

You don’t have a job, you’re alone and you’re 50 years old, and you if you could get a job, you have no currently usable skills. Your only income is your dead spouse’s retirement which pays $1500/mo. What should you do? Please realize I can’t fit every scenario into one blog article. If you have specific questions you’ll have to call.

Most of your friends, Suze Orman and that buckets of money guy will probably tell you to pay off the credit cards with the cash and then tap into the 401k or pull some equity out of the house. Some of the financial pundits will get a little cheeky and say you should offer each credit card 30% or 40% and try to settle them for an average of about 35cents on the dollar. That way you could use the cash, not tap into the 401k or the house and still have a little left over. While it’s not a bad solution, remember that you still only have an income of about $1500/mo and your mortgage probably comes to about between $800/mo to $1200/mo depending on when it was refinanced last and many other factors. Even if your mortgage is low, how do you live on only $700/mo. It can be done but that’s a different article coming soon.

Why pay them even 35% when you could pay them 0%? After paying your bankruptcy attorney approximately $1500 in attorneys fees and the $300 filing fee for the case, you’ve only paid out about 3.5% of the total balances on the cards and loans. In CALIFORNIA you can keep the 401k, you can keep the equity in the house, you can keep the $20K in cash, you can keep the clothes and furniture, you can keep the little bit of jewelry, and yes, you can keep the old beater car. Is 3.5% better than 35%? No brainer.

In other words, you keep everything except the cost of filing the case. If any of the credit cards comes forward and says that that debt was created via fraud, you can say that it wasn’t your fraud, the missing spouse did it. And yes, even if the card is in your name, if it was identity theft, (your spouse stole your identity to create a card in your name), that’s not you committing fraud, it was your spouse. So sue him or her.

Bottom line, you’ve still got your 401k, your cash savings which must guard with your life because you don’t have a job. If you only spend $500/mo of it, it will last you 40 months on top of the $1500/mo in income that you do have in our little example above. You can see that if you can’t find a job in the next 40 months, then at least you had that much breathing room. If you paid out a 3rd of your savings to pay off credit cards then you’d have a year less than 40 months to find the next job. How much of a cushion is enough? With 40 months you could go back to school and finish a degree.

Sure they’ll tell you that employers are looking at your credit scores, and some do, but not if you have no interesting skills other than how to raise a family. I’ve got friends older than me who are working at Home Depot now. Great way to supplement the income but after years of raising a family there’s no other jobs they can do. I’m pretty sure credit was not an issue.

I’ll tell you about identity theft in another article.

For now, just realize that if you can keep all of your savings and file bankruptcy, why would you ever, ever do what the financial pundits tell you and pay off credit cards with savings when you don’t have a job? Anyone telling you to do that must have a freaking hole in their head. DON’T DO IT. Just Say NO. If you are not in California, go to the attorney of your choice and ask what you could keep if you filed a bankruptcy in that state. Also, if you live in Arizona, move to El Centro or the nearest California City closest to you and commute to work if you have a job or whatever you commute to and then file. That way you won’t be an Arizona resident when you file and, while you won’t get to keep $20K in cash like you would if you were from California, it will at least be substantially more than what Arizona will allow you to keep when you file.

How to Discharge Income Taxes in Bankruptcy

Before we get started, Disclaimer: Nothing in this article may be mistaken as legal advice. Attorney David Nelson, is licensed only in California, and this article is intended only for readers in California. This article is for entertainment, educational, extra-curricular, and medical purposes only.

Cash for Keys

If you lose your home to Foreclosure . . .

If you cannot afford to pay for your home, if you cannot eventually get a loan modification, if a Chapter 13 just won’t work for you, then you will lose your home.

Rebuilding Credit After Bankruptcy

David,

If you or anyone you know has ever file bankruptcy than for them to get back on their feet [fast] they MUST know…

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How to Rebuild Credit After Bankruptcy Copyright 2011 / All Rights Reserved
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See the video article here:
http://www.creditrepairpublishing.com/rebuild-credit-after-bankruptcy

In this article we’re going to cover what I believe to be the best strategy for rebuilding credit after bankruptcy.

If you stick to some basic rules and follow some very basic steps you may be surprised to find that you can have a very healthy credit score within a relatively short amount of time after your bankruptcy. Before we get into the method itself, let’s talk a little about why it works. This “credit after bankruptcy” strategy works because of a special aspect of the credit scoring system known as “scorecards”.

In credit scoring, a “score card” categorizes and scores consumers based on their credit performance compared to others in their same category. It’s kind of like the credit world’s equivalent of “grading on a curve”, but this “grading curve” can hurt you just as much as it can help you.

Both FICO and the newer Vantage score use scorecards, so the general discussion here should apply to both. A scorecard might, for example, look at patterns for consumers who have filed bankruptcy. Statistics might show that if a consumer has late payments within a few months of bankruptcy, hey are highly likely to have even worse credit problems in the future. Statistics might also show that consumers who keep their credit clean after bankruptcy for at least a year or two are much less likely to default on loans.

This means that consumers on the bankruptcy scorecard who have late payments popping up within a year or two of their bankruptcy will likely see their score drop even more and will have an extremely difficult time bringing it up from there. Why? Because it looks like they haven’t learned their lesson, and

Bankruptcy Means Test Basics

Bankruptcy Means Test Basics

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Bankruptcy Means Test is the Chapter 7 Qualification Test. However, if you do not qualify for a 7, it is also used to determine the amount of your chapter 13 plan payment. Additionally, it determines the duration of you chapter 13 plan.

If your income is above the median income your chapter 13 payment plan must last for 5 years.

Reaffirmation Agreements

REAFFIRMATION AGREEMENTS

A Reaffirmation Agreement is a new promissory note to keep paying on an old contract for the purchase of goods where the lender can repossess or foreclose the goods.

Bankruptcy Attorney David Nelson

Temecula Bankruptcy Attorney David NelsonTEMECULA BANKRUPTCY ATTORNEY DAVID NELSON

I have been a Bankruptcy Attorney since the very beginning. Having graduated in the top 15% of my class I passed bar the first time and in June of 1994 I opened my law office.

Chapter 13 2nd Mortgage Lien Stripping

Chapter 13 2nd Mortgage Lien Stripping

You may be able to strip your 2nd mortgage or home equity line of credit, Heloc, off of your home in a Chapter 13.

Debt Freedom and Retirement

Debt Freedom is Required for Retirement

If you’re like most of us, you’re planning to retire on your 401k or other similar Retirement plan. And you’re wondering if Walmart and McDonalds will have too many “senior” team members when you get there.

Chapter 7 and Your 2nd Mortgage

Updated on June 13th, 2018.

Refinancing Your Second Mortgage

Yes, it may be an actual option. And as unlikely as it may seem or feel, if you have home equity now (at this writing in 2018) then a refinance may work but only if you have good enough credit.

YOUR HOA MAY SUE YOU EVEN AFTER YOUR BANKRUPTCY

YOUR HOA MAY SUE YOU EVEN AFTER YOUR BANKRUPTCY:

THE BANKRUPTCY CODE SPECIFICALLY ALLOWS IT!