I belong to a number of professional organizations, including the American Bankruptcy Institute (ABI). As a bankruptcy attorney, I wish more young people included financial literacy and personal finance in their high school and post-secondary education.The Credit Abuse Resistance Education (CARE) Program is a good place for both students and parents (and unsophisticated consumers) to … [Read more...]
Credit Scores After Short Sales, Foreclosures & Bankruptcies
October 27, 2010 By
Clients and prospective clients almost always ask about the effect of their financial difficulties on their credit scores. This information is elusive. Finally, USAA has some guidance on how your score is determined and "hit."A myriad of variables combine to create a score:Your payment track record. How much you owe. How long you've had established credit. Whether or not you're … [Read more...]
Learn to Prevent Fraud, Charlotte Seniors
September 30, 2010 By
Older Adults Can Learn about Fraud Prevention at Senior Scene on October 5 Presented by the Better Business Bureau Consumer Foundation, Senior Scene will be held on Tuesday, October 5 from 8:30 a.m. until 12:30 p.m. at St. Stephen Methodist Church, located at 6800 Sardis Road, Charlotte, N.C. 28270.Senior Scene 2010 is Charlotte's premier event for information on Medicare fraud, prescription … [Read more...]
Over 50 and Unemployed?
September 24, 2010 By
The 57-year-old woman featured in this NYT story paid her home off but may lose it in foreclosure because she cannot pay her property taxes. She is not alone.According to the article it will take years to absorb the giant pool of unemployed at the economy’s recent pace:Of the 14.9 million unemployed, more than 2.2 million are 55 or older.Nearly half of them have been unemployed six … [Read more...]
Small Businesses and Credit Card Reform
September 23, 2010 By
We counsel small business owners and the self-employed daily in our offices. Many operate on credit and debit cards because bank financing is so hard to obtain. Small Business Issues with Credit Card Accountability and Responsibility Act For reasons outlined below (excerpted from this MSNBC article), our credit card debt counseling load is likely to increase in the wake of the new Credit Card … [Read more...]
The Do Not Call Registry: Can It Stop Creditor Calls?
May 26, 2010 By
Last week I wrote about creditors that text collections messages to debtors' cell phones. We had a question from a reader about the legality of creditors using cell phones in light of the federal Do Not Call Registry. Specifically, if you place your cell phone on the Registry, are creditors prohibited from calling you?The short answer is "no." Handling calls from creditors When the … [Read more...]
Much-Needed Debt Settlement Regulation
May 17, 2010 By
We've written a great deal about the abuses and excesses of debt settlement operations lately.Last month federal legislation was proposed to tighten the screws on unsavory practices in this industry. It pointed out that while costs vary, "a company might charge up to 20 percent of the total debt. Fees are usually demanded upfront, even though a settlement may never be secured." Why pay … [Read more...]
Settle Debts or File For Bankruptcy Protection?
May 10, 2010 By
Sometimes I think people read our blog and wonder if everything we say is designed to get people to stop trying to pay their debts and just file for bankruptcy protection. Then I come across a story like this about the downside of trying to settle debts either with or without involving a "debt settlement" company.The article tells an all-too-familiar tale of spending money with a debt … [Read more...]
How Debt Settlement Works
April 21, 2010 By
The nonprofit Consumer Credit Counseling Service of Orange County produced an excellent video on how debt settlement works -- usually against you.We've written on this topic several times on our blog as well.If you decide to hire someone to help you settle, consolidate or otherwise manage your debts, then be very wary of companies that are advertising. Most of them draft various fees from … [Read more...]
I’ll Just Ignore the Certified Letters
April 16, 2010 By
Some people think they can tie their creditors' hands by ignoring requests for payment or by contesting their debts with a credit bureau. They also call our offices for help cleaning up their credit reports, which is not a service we offer.If you wish to dispute an entry to your credit report, we suggest you use this letter guide, provided courtesy of the Consumer Credit Counseling Service … [Read more...]