If charging tax liability please be aware that the Bankruptcy Code specifically disallows that part of your credit card debt to be discharged in a bankruptcy case, unless the tax you are paying is dischargeable as well.

If you have questions about tax liability and credit card debt please call Attorney Miller at 414-277-7742.  Our office is accessible  in Milwaukee, Racine, Ken0sha, Germantown, West Bend, Ozaukee, Brookfield and all surrounding Milwaukee Metro Areas.

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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.

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.

 
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.

All too often, clients come into our office, review their credit report, and are shocked to see what is listed.  Sometimes this is because there are old items that have been forgotten, but another culprit is identity theft.    

As the web has evolved, so have criminals and their tactics. With websites that look similar to name brand sites, con artists can pluck information as consumers enter what they believe is a legitimate site.  Once someone has stolen your identity and injured your credit score, it can be challenging to repair the damage. 

“Everything is done online these days,” says Identity Theft Resource Center Social Media Coordinator Nicki Junker. “Most of the time the victims of cyber-savvy criminals won’t be able to trace where the identity theft — a crime that has seen double-digit increases in the last five years — happened.”

Identity theft often goes unnoticed until it’s too late and the damage has already been done. In 2010, around 8.6 million households had at least one person who was a victim of identity theft, up from 6.4 million households in 2005, according to a recent study by the U.S. Bureau of Justice Statistics. Identity theft cost U.S. households about $13.3 billion in 2010, with the average loss being about $2,200.

Consumers can, however, take precautions to safeguard themselves and their identities while shopping online. Junker offers five ways to protect yourself online:

1. Confirm the site is legit: Before giving any personal information, check the URL to make sure that you’re still on the same site where you plan to make your purchases and that you haven’t been moved over to a fake one. Junker said sometimes consumers are switched over to a “cyber squatter’s” site that looks similar to a retailer’s site. It’s easy to be tricked into giving up credit card and other personal information.

2. Shop securely: When you start to check out and get ready to pay for your purchases, the URL should start with “https,” which means the site is secure. A secure site uses security technology to encrypt the information you send to the site, meaning computer hackers are stopped from collecting the data as it crosses the Web. You can also look for a closed yellow padlock at the bottom of the screen. If you see an open lock, you can assume that the site is not secure.

3. Use credit cards: Federal credit laws limit the amount a con artist can take on a credit card. Debit cards don’t have the same protections. “If they have a debit card, they can clear you out,” Junker explains. “You’re much better protected using a credit card than a debit card.”

4. Google the retailer: Before buying from a website, type in the retailer’s name and the word “scam” or “complaint” into a search engine. It’s a way to check out a retailer to see if the business is legit or not.

5. Explore the site: Can you find where the company’s office is located? Does the site clearly state a refund policy? Does it promise too much? “If it sounds too good to be true, it isn’t,” Junker warns. Take your time and make sure nothing seems out of whack or iffy.

Shopping online is a convenient way to avoid store crowds and traffic. By following these web-savvy tips, your shopping experience can be safe and convenient.  If you are living in Milwaukee-Waukesha-Racine area, the attorneys at Miller and Miller can help you to repair and rebuild your credit if you think there are errors. Call us at 414-277-7742 today!

Four Wisconsin cities – including Wausau at No. 1 – are among the 10 communities in the nation with the highest average credit scores, a new survey shows.

Wausau residents posted an average credit score of 789 in the survey conducted by the credit-rating agency Experian. Madison was third, at 785; Green Bay sixth, at 780; and La Crosse 10th, at 777.

Milwaukee, with a score of 765, was 33rd of 143 cities included in the survey.

“Wisconsin residents remain among the nation’s most fiscally responsible,” Experian stated Tuesday in announcing the survey results.

Higher credit scores generally give consumers the ability to borrow money at lower interest rates.

Credit scores are based on a consumer’s payment history, debt balances and several other factors. Among those factors are how much of a person’s available credit is used, how long a person has had credit and whether late payments have occurred recently.

Wausau unseated Minneapolis, with the Minnesota city slipping to second in the annual survey with a 787 average credit score.

Rose Oswald Poels, chief executive of the Wisconsin Bankers Association, wasn’t surprised by the survey’s findings.

“The consumers in this state are generally very conservative with their money and smart about credit decisions, and that’s true of the financial institutions that serve those citizens,” Oswald Poels said. “I think it’s just the combination of the types of values and people we have in this state, coupled with the type of financial institutions that we have. We both share similar values in being fiscally conservative, hardworking and smart about credit.”

An executive with Wausau-based Peoples State Bank said he’s noticed before that many of the bank’s customers bring credit scores higher than 700.

“I think people here were raised in a conservative fashion, and they live the way their parents do,” said John Proulx, senior vice president for Peoples State Bank. “I think that probably is a big reason as to why we have the good scores.”

Overall, the survey found that Midwesterners have the highest credit scores while Southerners have more financial struggles.

Experian said that while no one factor determines a consumer’s credit score, the weak economy continues to cause major setbacks, such as foreclosures and unemployment. Those troubles were drivers in the rankings and trends for different regions of the country, the firm said.

Of the cities with top 10 credit scores, only San Francisco had a jobless rate higher than the national rate. Texas had four cities in the bottom 10.

The credit scores in the report were based on the VantageScore scoring system, which has a range from 501 to 990, in designated market areas from January through June of 2011, Experian said. The analysis was based on a statistically relevant sampling of Experian’s consumer credit database, the firm said.

“We have our issues just like any other city does. We have some foreclosures and things like that, but probably not as much as some of the other areas do,” Proulx said. “So some of that doom and gloom has hit Wausau, but it’s maybe not as prevalent in this area.”

Wausau Mayor James Tipple was proud of the ranking for his city, which has a population of 41,800.

“I think the quality of life and the people we attract to the region, and not only the region but the city of Wausau, speaks volumes for the score,” Tipple said.

This issue can sometimes be very confusing.  For that reason we always suggest you set up a free consultation with one of our lawyers a Miller & Miller.   There is never a charge for an initial consultation and we are happy to meet with you to discuss all of your options.

James Miller

jmiller@millermillerlaw.com

414-277-7742

This brings to mind the client who comes to my office and tells me that even though they are hopelessly in debt, they are worried about filing a bankruptcy because their credit score is still high.  I always remind these clients that your credit score is supposed to be one of many barometers of your financial health, not an absolute indication of financial health.  Unfortunately, many people are encouraged to misuse credit based upon the erroneous assumption that all is well because their credit score is still above 700, and they slowly fall into financial hardship. 

The definition of financial health includes living within a budget, controlling debt, using credit responsibly, working towards short and long-term financial goals, and saving.  It is challenging to manage any of these things when you are struggling to make minimum payments on your monthly obligations. 

The federal bankruptcy laws provide a solution for those who are overwhelmed with debt.  Bankruptcy can restructure or eliminate certain debts while protecting assets like your car, your home, and your 401(k).  If you have more debt than you can handle, and feel like you aren’t getting ahead, don’t be fooled by a high credit score.  It might be time to consult with one of the experienced attorneys at Miller and Miller, who can advise you of your options on how to get back on the road to financial health.