Posts Tagged ‘Fresh Start’
Join us for an information-packed webinar with bankruptcy attorney Jamie Miller. This workshop will offer you expert guidance on the different bankruptcy options; as well as the benefits that bankruptcy can offer you to help you take control of your financial life. It is time to get the fresh financial start you deserve. Go to MillerMillerlaw.com and click on the “Registration Now” star to sign up.
Join us April 17th @ 10am for this great Webinar. Register today!
1099-C In the Mail? How to Avoid Taxes on Cancelled Debt (via Credit.com)
If it’s been a rough couple of years for you, you’re not alone. Maybe your income was cut, you lost your job, or you had large expenses like medical bills. You may have fallen behind on bills, fielded collection calls and managed to settle some of your debts for less than the full balance you owed…
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.
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.
Over at the MintLife Blog they recently had a great article on overpriced children’s items. After getting a fresh start through bankruptcy it is important to look for ways to keep costs down so that you are able to build a strong financial future. We all want to give the world to our children, but if you can do that while saving a buck it’s even better.
Read that article here.
Everyday people in the Milwaukee area are learning how to get out of financial trouble by meeting with one of our attorneys. Miller and Miller has offices in Milwaukee, Kenosha, and Germantown to ensure that wherever you are in Southeastern Wisconsin, we’re close.
Call us today at 414-277-7742 and schedule your free consultation!