Posts Tagged ‘Secured credit cards’
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.
Thousands of Milwaukee residents file for bankruptcy each year. A good number believe they can’t afford a lawyer but are intimidated by the idea of trying find their way through a legal system they don’t understand.
These citizens have critical questions about the bankruptcy process:
“Can I keep my car?”
“Do my husband and I both need to file?”
“Will my child support arrearage be discharged?”
Many turn to bankruptcy petition preparers for those answers and pay $100 to $250 to get them. But most do not realize that petition preparers are simply typists. They are not trained in the law and do not know the answers to the questions that debtors need to ask.
Some preparers answer the questions anyway, often giving the wrong information.
Some take the debtors’ money but do not complete the papers or do not file the papers or do not file the correct papers.
Milwaukee’s bankruptcy judges have grown weary of being forced to dismiss cases because the debtor paid money he or she did not have to a petition preparer who gave the debtor the wrong information, did not file all of the required documents or filled out the documents incorrectly.
People who consider filing for bankruptcy already are hurting, without losing precious dollars to someone who cannot give them the advice they need.
To make it clear that the law does not allow petition preparers to give legal advice, and that they are not qualified to do so, the Milwaukee judges have established a new policy: Beginning Jan. 1, a petition preparer may charge only $75 for completing bankruptcy papers.
If the preparer is following the law, simply filling out the papers without giving legal advice, $75 is a reasonable price for that service. If a debtor needs more than typing services – and most debtors do – the bankruptcy court has a Help Desk, where from 9 a.m. to 10:30 a.m. every Thursday morning, bankruptcy lawyers will answer questions and help debtors with their paperwork.
And it’s free of charge.
Pamela Pepper is chief judge of the U.S. Bankruptcy Court for the Eastern District of Wisconsin, sitting in Milwaukee.
Pull Your Credit Report. We suggest to our clients to pull your credit report about 6 weeks after you receive your discharge letter. There will almost always be some errors still on the report and it is better to resolve these matters immediately after bankruptcy rather than waiting years before reviewing your report.
Manage New Credit Wisely
Borrow in Small Quantities: The best ways to rebuild credit after bankruptcy is to start rebuilding it with the help of very small credit facilities. You can use some small credit cards such as a department store card or a simple gas card. You may also proceed to use some simple universal cards such as the debit card. Join a Credit Union as these institutions offer much better rates on credit card and loans than conventional banks.
Save Up: Save the remaining amount of your salary in a savings account. This is basically an emergency fund and use it “only during an emergency”.
Sign up for one credit card: If you have only been using department cards a secured credit card is a good option. You can use your savings account as collateral to get the secured credit card. Make the best use of your credit card each month and also make it a point to make timely payments. The best way is to make all bulk expenditures with the help of this card, but it should not exceed your debt to income ration.
Zero Down Your Expenses: There are countless ways to rebuild credit after bankruptcy, however it does not mean that you overspend your expenditures. Call and ask the cable company for their latest deal. Check out cheaper landline rates or simply get rid of your landline.
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.