Archive for the ‘Chapter 13’ Category
Bankruptcy might seem like the end of the road, but the stigma is not nearly as severe as it once was. In the past, it meant that the chances of getting approval on unsecured personal loans applications were practically nil, while even those lending firms who might be willing to take a chance would still be more likely to say no.
But in the modern world of finance, it is possible to get post-bankruptcy loans to repair credit ratings and begin the rebuilding process to a stronger financial status. In fact, it is that the credit rating improvement is the purpose of the loan that can lead to approval.
Still, there remains an acute risk to lenders that approval unsecured loans after bankruptcy, and for that reason the term can sometimes be debilitating. Higher interest rates may be expected, but with the advent of the internet, and the online lenders that can be found on it, the heavily increased rates do not need to be accepted.
Strategies To Recover After Bankruptcy
While bankruptcy might not be the end of the road, recovering from it does require starting again. This is where a small unsecured personal loan can come in so useful. However a loan is not the only strategy to choose, with low interest credit cards and dedicated saving helping the cause also.
Getting post-bankruptcy loans to repair credit ratings is admirable, but often the starting point is actually in building a savings account. In getting together a lump sum, a lender can see a committed attitude when a loan is finally applied for.
It can also help in securing a low interest secured credit card, with a small credit limit. This is necessary mainly due to the fact that our society is credit card orientated, but by making credit card repayments on time, a history of repayment is built up. So when it comes to applying for unsecured loans after bankruptcy, there is an indication of good financial habits.
If you need to file bankruptcy and you want honest answers please call Attorney James Miller at 414-277-7742 to discuss your bankruptcy options. The Law Firm of Miller and Miller serves all Wisconsin communities including those in Kenosha, West Bend, Germantown, Waukesha, Racine, Brookfield, Ozaukee, Mequon, Menomonee Falls, West Allis, South Milwaukee, Okauchee and Madison.
The Huffington Post chronicles this incredible story in which a debt collector allegedly called 911 on an 85 year old woman:
Read it here.
If you live in Southeastern Wisconsin and are being badgered by debt collectors call Miller and Miller today at 414-277-7742.
With offices in Milwaukee, Kenosha, and Germantown, we’re sure to be located close to you whether you live in Waukesha, Racine or somewhere in between.
It’s that time of year again! Your W-2s and 1099 forms have been sent out and have likely hit your mailbox or e-mail inbox recently. While preparing your taxes is no fun, especially if you think you are going to owe Uncle Sam this year, it is a good idea to get them filed before you file for bankruptcy. Why? You are required to turn over tax returns for your case to be prepared and for the trustee to review. If you drag your feet in getting them filed, you may just delay your case moving forward. In addition, you may be putting your tax refunds at risk of having to be turned over to the case trustee if you receive them after you file. If you are planning on filing bankruptcy soon and have questions about the timing of filing your taxes, please contact our office to schedule a free consultation, and we can help you make that decision. To best serve residents of Milwaukee, Ozaukee, Washington, Racine, Kenosha, and Walworth counties, we have conveniently located offices in downtown Milwaukee, Germantown, and Kenosha. We are here to help!
There is no perfect time to file for bankruptcy. Ideally, you should wait to file at a point when you have not touched your credit cards for several months and your credit card charges over the past year have not taken a big jump. Further there is less chance that you will face any objection if you have made at least the minimum payment over the past 6 months or longer.
Section 523 of the Bankruptcy Code sets out a number of situations in which credit card debt will not be discharged. Section 523(a)(2)( c) makes non-dischargeable consumer debt totaling more than $500 for luxury goods and services owed to any one creditor that are incurred within 90 days of filing, or cash advances totaling $750 or more owed to any one creditor made within 70 days of filing.
Section 523(a)(2) makes non-dischargeable debt owed to a creditor that was incurred by false pretenses or by fraud.
So to sum it up, Section 523 gives credit cards at least two arguments to challenge a Debtor:
1. Recent credit card use (within 3 months) for anything but necessities like food, clothing and shelter
2. Any credit card use in the recent past (up to a year prior to filing) if a Debtor makes charges where there is no reasonable expectation of repayment.
Here’s another way to think about it: If you have lost your job, and for the last year your only source of support are credit cards and cash advances, you should not expect to avoid a challenge by the credit card issuer just because you wait 91 days after your last use of your cards.
What, then, should you do if you need to buy food or gasoline in the weeks before you actually file?
You should recognize that shortly after you file, there is a very good chance that your credit cards will all be canceled and you are going to have to find another way to pay for your food and gasoline. A bankruptcy may eliminate old debt but it will not help you pay your current or on-going bills.
As a practical matter you are not going to want to spend the money litigating Section 523 dischargeability actions. Bankruptcy litigation is expensive and if you are scraping to buy food and gasoline, you will not be able to afford litigation. The fee you pay your bankruptcy lawyer will almost never include litigation.
If you are in Southeastern Wisconsin and are having trouble with your credit card debt, contact Miller and Miller today. We have offices in Milwaukee, Germantown, and Kenosha, making sure that whether you live in Racine or Waukesha, you have a office close to home.
Breaking news:
The Obama administration has announced changes to its flagship foreclosure prevention initiative – the Home Affordable Modification Program (HAMP). Among the changes, borrowers who are struggling because of debt beyond their mortgage will be eligible for a secondary evaluation with more flexible debt-to-income criteria, and eligibility will be extended to investor-owned homes that are used as rental properties. The administration is also giving principal reductions a bigger role within the program, tripling incentives for investors that agree to write down an underwater borrower’s principal balance and offering these same incentives to the nation’s two biggest mortgage investors – Fannie Mae and Freddie Mac.
We’ll all have to stay tuned to see how this develops . . .