Milwaukee Bankruptcy Attorney Blog by Miller & Miller Law, LLC » Credit cards

Credit Repair Tips After Bankruptcy

Jason S. Crye — Mon, 12 Dec 2011 22:42:26 +0000

Here’s a link to a worthwhile article by Jennifer Waters on a very common (and very important) question that our clients often ask: What can I do to help my credit rating after filing a bankruptcy?

To discuss your credit repair and rebuilding options with one of our attorneys, call us today!

10 Things Not to do When Preparing to File a Bankruptcy

Jason S. Crye — Tue, 06 Dec 2011 18:21:24 +0000

1. Don’t run up your credit cards.

2. In fact, don’t even use your credit cards!

3. Don’t take our any pay day loans.

4. Don’t Cash out your 401(k) or any other retirement plan you might have.

5. Don’t pay back any friends or family members to whom you might own money.

6. Don’t transfer your money into someone else’s bank account.

7. Don’t go gambling!

8. Don’t do a balance transfer.

9. Don’t try to transfer any property out of your name.

10. Don’t be afraid to ask your attorney questions!

Student Loans Now a Bigger Problem Than Credit Card Debt

Jason S. Crye — Tue, 01 Nov 2011 21:24:40 +0000

USA Today recently published an article explaining that Americans’ student loan debt, which totals approximately $850 billion, now exceeds outstanding credit card debt in the U.S., which totals approximately $828 billion.

Perhaps a more interesting element of this story has to do with the monthly repayment numbers borrowers are expected to pay. The USA Today article suggests that $30,000 of student loans, payable at 6.8% interest over ten years would amount to $350 per month. At this level of debt, the average person would need to earn at least $42,000 per year. Unfortunately, as bankruptcy attorneys we commonly see student loan debt in excess of $100,000, with monthly payments over $1,000.

From a bankruptcy perspective, student loan debt is not dischargeable except in cases of “undue hardship.” In the Eastern District of Wisconsin, the court uses a very strict three part test to determine whether student loans may be discharged. As the law stands today, debtors in the Eastern District of Wisconsin have not been successful in arguing for hardship discharge on the grounds that they cannot find a job that pays enough to support their student loan obligations.

10 Ways We Waste Money

Jason S. Crye — Mon, 26 Sep 2011 16:55:06 +0000

The MSN Money team makes the important point that before you start saving money, you have to stop spending it. Below are 10 common ways that Americans blow their hard-earned cash. Check out the full article here.

1. Buying Brand Names

2. Buying New

3. Accepting Initial Offers

4. Buying a Bigger Home than You Need

5. Paying Interest

6. Eating out too Much

7. Paying for Freebies

8. Keeping Unhealthy Habits

9. Turning Down Free Money

10. Paying too Much for Insurance

Do any of those ring a bell for you? Did they miss anything? Add your top money wasting activities in the comments section below.

Attorney Miller quoted in Journal Sentinel regarding decline in Bankruptcy Filings

Jamie Miller — Tue, 26 Jul 2011 15:31:13 +0000

Bankruptcies ease in U.S., state

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By Paul Gores of the Journal Sentinel

July 25, 2011 |(1) Comments

Click to enlarge

Bankruptcy filings in Wisconsin and the nation are running behind last year’s pace, but attorneys say it’s too soon to know whether the wave of filings triggered by the economic downturn has crested.

Still, at least in some lawyers’ offices, the number of people coming in to declare themselves insolvent has slowed slightly. And more of those filing for bankruptcy today are people who at one time were higher on the economic scale. That compares with many of those who filed earlier in the recession – people who were living paycheck to paycheck and folded quickly when their income was cut, lawyers said.

“I think those that we’re seeing now are those who were able to survive the downturn – people who were self-employed, people who had higher-paying jobs, were able to tap into retirement accounts and use the credit card but make the minimum payments,” said James Miller, of Miller & Miller in Milwaukee. “There is just not that same mass of people as those who fit into the first category.”

U.S. Bankruptcy Court records show bankruptcy filings fell 8.4% in the first half of 2011 in Wisconsin, to 14,682 from 16,024 in January through June 2010. About 80% were Chapter 7 filings, which wipe out debt on things such as credit cards, medical expenses and utility bills.

The Wisconsin numbers mirror a decrease in consumer bankruptcies nationally. There were 709,303 filings in the United States in the first six months of 2011, an almost 8% decrease from 770,117 during the same span in 2010, according to American Bankruptcy Institute.

“What we’re seeing is still high filings, but off the peak,” said David Leibowitz, founder and managing member of LakeLaw in Milwaukee and Kenosha. “I don’t think we can take a great deal of comfort in it. But I do think that there’s a direct correlation between the economy and unemployment on one hand and the bankruptcy statistics on the other hand.”

Madison bankruptcy attorney Claire Ann Resop of von Briesen & Roper said people who had been making at least midlevel incomes are among those she sees more frequently. Among those on the list: teachers, nurses, sales people, tradesmen, homebuilders and truckers.

“They had higher income and they had more resources to try to keep up for a while,” she said.

Milwaukee attorney Robert Waud said he was “kind of surprised” to hear the number of filings in the state declined.

“It’s pretty steady coming in the door,” he said.

Small-business owners, trades people and land developers are common bankruptcy filers, he said.

Waud, of Todd C. Esser & Associates, isn’t convinced bankruptcy filings have peaked, even if the half-year trend is down from a year ago.

“I think it’s too soon to say,” he said.

Miller said restraints on credit since the start of the recession and financial crisis have cut the likelihood of people charging huge debts that end up in bankruptcy.

“Credit companies aren’t taking as many risks on people, so there are not as many credit-related defaults,” Miller said.

Lawyers said issues that historically have led to bankruptcy remain the big factors – uninsured major medical costs, divorce and job loss.

“The problem still, as far as I’m concerned, is there are not enough people working,” Waud said.

Should I pay my credit cards or my mortgage payments?

Jamie Miller — Mon, 16 May 2011 15:58:46 +0000

A significant number of Americans are now facing the difficult question: Should I pay my credit cards or my mortgage payments? The answer to this questions increasingly has become to pay the credit card debt. Many Americans have stopped paying their mortgage payments because they owe so much more on their homes then their homes are worth. People are simply letting their homes go because they know it will be years before the values of their homes will recover.

Financial advisers caution that the mortgage is still the most important debt to pay on time. A survey by the National foundation of Credit Counselors showed that 91 percent of consumers said they would pay their mortgage before their credit card bill.

This decision has become increasingly more challenging. I urge you to schedule an appointment with your financial advisor or a qualified bankruptcy lawyer so that you are in the best position to make a decision that works for you and your family.

THE RIGHT CREDIT CARD

Jason S. Crye — Mon, 13 Dec 2010 16:54:19 +0000

If your interest rate is so sky high that you’re starting to have trouble making your payments, it might be time to consider transferring your balance to another card. But which card?

Or, maybe you’re considering getting your first credit card. Or perhaps you want another credit card.

Whatever your situation, if you are shopping around for credit cards, you need to check out www.nerdwallet.com

It’s a great place to find the best credit card for your needs.

Top 10 Signs You Need To Talk TO A Bankruptcy Attorney

wyanow — Mon, 07 Jun 2010 16:30:55 +0000

The first step is recognizing that there is a problem. If thinking of your debt keeps you up at night you probably already know that you’re in over your head. Or perhaps you are “robbing Peter to pay Paul” and you may not realize that you’re on a dangerous slope. If you find that you fit either category, you may want to seriously think about getting a handle on your debt.

1. You routinely spend more than you earn.

2. You only make the minimum payment required on your credit cards

3. Your credit limit(s) is maxed out.

4. You are not aware of your total debt or what is on your credit report.

5. You skip paying some bills to pay others or use cash advances or payday loans to pay off others.

6. You argue with your spouse/significant other about money or afraid to discuss money with your spouse/significant other.

7. You panic when faced with an unexpected expense such as a broken water heater or car repair.

8. You owe more on your car than it’s worth.

9. Creditors are calling about overdue bills.

10. You are thinking about filing for bankruptcy.

Credit Cards After Bankruptcy

wyanow — Mon, 05 Apr 2010 15:37:05 +0000

As mentioned in an earlier Blog that one cannot pick and choose the debts they wish to include in a bankruptcy. In general, if someone has a zero balance on a credit card that particular card will not be included in the bankruptcy filing. One may think that they will then be able to use that credit card in the future. In most cases the lender will close your account once they get wind of the bankruptcy filing and in this new credit environment they will close it.

If you want to have a credit card to re-establish your credit, check out secured credit cards or a lender that was not part of your bankruptcy filing.