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Posts Tagged ‘Personal Finance’

What is a “Discharged Debt”?

Wednesday, November 2nd, 2011

“You often hear about filing a bankruptcy case and discharging debt, but what does this really mean?”, says Bert Briones, Principal Attorney at Red Hill Law Group PC, an Irvine, CA Bankruptcy law firm.

The term “discharging debt” means that the debtor’s personal liability for the discharged debts is removed. A discharged debt is essentially eliminated. A debtor receives his debt discharge order from the judge at the conclusion of the case.

Once a debtor has been discharged, creditors may not take any collection action against the debtor for the discharged debts.

Dischargeable Debts

It is important to understand that not all debts are dischargeable. Most unsecured debts (those not secured by collateral) are dischargeable. However, the Bankruptcy Code excludes specific debts from discharge, depending on the chapter under which the debtor filed.

What Debts Are Typically Not Dischargeable?

Chapter 7 is one of the most common types of bankruptcy filed by consumers. Under the Bankruptcy Code, there are nineteen different types of debts excluded from discharge. Below is a list of some of the more common non-dischargeable debts under Chapter 7:

- child support

- alimony (spousal support)

- most student loans

- some tax debt

- government fines

- fines for injury caused by drunk driving

- debts resulting from intentional property damage

- debts the debtor did not include on the bankruptcy petition

The other type of bankruptcy commonly filed by consumers is a Chapter 13. A Chapter 13 is less restrictive concerning the types of debts that may be discharged. Debts that may be discharged under Chapter 13 but not Chapter 7 include:

- property-settlement debt from divorce or separation proceedings

- debts resulting from intentional property damage

- debts incurred to pay otherwise non-dischargeable tax obligations

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced personal finance/bankruptcy attorney.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Debt relief, Financial Planning, Personal Finance
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Credit Scores, Debt Settlement / Debt Negotiation | No Comments »

What Are Some Major Causes of Excessive Debt?

Thursday, October 27th, 2011

“Many people are not aware of the many causes of debt that need to be avoided in the future,” says Bert Briones, a bankruptcy attorney with Red Hill Law Group PC, an Irvine, CA bankruptcy law firm.

Here are some major causes of debt that people are facing:

Poor Money Management

A monthly spending plan is very important. Without one you have no idea where your money is going. You may be spending hundreds of dollars unnecessarily each month and end up having to charge purchases on which you should have spent that money.

You will be surprised at how powerful you will feel when you are making thoughtful decisions about where and when to spend your money.

Underemployment

Are you underemployed and you have the mindset that it is only temporary? Do not give yourself a false sense of relief. Take your income and align your expenses with it. Later, you can think about spending a bit more after some stability and longevity with your income.

Medical Expenses

High deductibles, coinsurance, coverage gaps, etc., can cause a major hit to your savings. If your doctor accepts credit cards, it is not for your convenience. They want to get paid immediately. This becomes less risky for your medical provider, but can also create a huge problem with your financial situation.

Family Communication

Keep communication open between you and your spouse or significant other, as well as your children. Ensure that your financial situation and spending goals are agreed upon. Both of you need to be aware of all open credit accounts and keep each other informed about spending. Some folks find out about accounts that they never knew existed. Don’t let this happen to you.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Creditor, Financial Planning, Personal Finance
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Scores, Debt Settlement / Debt Negotiation | No Comments »

How to Build, Maintain, and Protect Your Credit

Wednesday, October 5th, 2011

“There are several ways to build, maintain, and protect your credit and it is crucial for managing your financial situation,” says Bert Briones, Principal Attorney for Red Hill Law Group, PC, an Irvine, CA bankruptcy law firm.

A low FICO score and/or a subpar credit history could result in a loan denial and higher interest rates on credit cards, auto loans, and mortgages.

Your first action should be to obtain a copy of your credit report and check it for accuracy. One free credit report per year is allowed from Experian, TransUnion, and Equifax, by going to www.annualcreditreport.com.

Thoroughly check your report to ensure the correctness, including verification of each creditor and disputing any errors quickly.

How Can I Build Strong Credit?

Pay your bills on time. Use an “autopay” system if that would help you
Do not open lines of credit that you do not need
Keep credit card accounts open that you have had for a long time
Pay off debt rather than transfer balances to lower-rate credit cards
Keep revolving credit balances as low as possible

How Can I Protect My Credit?

Protect your personal information at all times
Do not carry your Social Security card with you
Shred your mail before discarding it
Avoid using a credit card for identification

How Can I Improve or Repair My Credit?

Pay your bills on time. Your credit score will be affected positively when your bills are paid in a timely manner, long-term
Monitor your credit report a few times a year to ensure the accuracy of the information
Get current on accounts where you are behind. Collection accounts will affect your credit report negatively

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Debit card, Debt, Financial Planning, Personal Finance
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Scores, Debt Settlement / Debt Negotiation | No Comments »

5 Steps to a Higher Credit Score After Bankruptcy

Thursday, September 22nd, 2011

“If you do a nice job managing your credit after bankruptcy, a relatively strong FICO score is possible,” says Bert Briones, Principal Attorney at Red Hill Law Group, PC, an Irvine, CA bankruptcy law firm.

Step One – Save Money While Rebuilding Credit

Having liquidity shows lenders that you can manage money. Over time, your FICO score should strengthen and additional loans for higher amounts should become available. Many lenders, especially online, specialize in working with borrowers with a history of bankruptcy, which may result in lower interest rates than a local bank.

Step Two – Check Your Credit Reports

Upon receipt of your bankruptcy discharge, ensure that you have everything removed from your credit report that was listed in the bankruptcy. For a Chapter 7 bankruptcy, the accounts listed on your credit report should have no balance. If the information has not been updated, write a letter to both the creditor and credit reporting company to clear it up.

Step Three – Keep Your Expenses and Debt Low

Keep your debt/income ratio as low as possible, as it can be a sign of how risky you are. The lower the ratio of debt to your income, the better credit risk you should be.

Step Four – Make Your Payments on Time

Post-bankruptcy, all of your bills must be paid on time. Lenders will want to see a history of at least two years of payments made on time, and the longer you pay your bills on time, the more your credit score will improve.

Step Five – Use Secured Credit Cards

Slowly rebuild your credit by using a secured credit card (or even more than one). The secured credit card will have a credit line equal to the deposit made to the issuer.

A 30% balance on the card is a fair balance to maintain, while paying off everything over this amount through on-time monthly payments. This will help show creditors that you can manage credit.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com/

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Tags: Bankruptcy, Chapter 7 Title 11 United States Code, Credit card, Creditor, Financial Planning, Personal Finance
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How is my Spouse Affected if I File Bankruptcy?

Monday, September 12th, 2011

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Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7 | No Comments »

What You Need to Know About Debt Collectors

Thursday, July 28th, 2011

“If you’re behind in paying your bills, a debt collector may be contacting you,” says Bert Briones, an Irvine, CA bankruptcy attorney with Red Hill Law Group, PC.

The Fair Debt Collection Practices Act (FDCPA) is enforced by the Federal Trade Commission to help protect consumers from collector abuse. This includes unfair and deceptive practices by a debt collector, who is someone who regularly collects debts owed to others. This may include attorneys, collection agencies, and companies that buy old debts then try to collect on them.

The FDCPA covers personal, not business debt, and includes such things as credit cards, medical, auto, and your mortgage. A debt collector cannot call you before 8:00 in the morning or after 9:00 at night, and they are not allowed to contact you at your place of business if they are told not to do so, verbally, or in writing.

Harassment, false statements, and other various activities are also off-limits for debt collectors. These include using threats of violence, using profanity, or falsely claiming to be who they are not, among others.

If you suspect that a debt collector has violated a rule under the FDCPA, contact the Federal Trade Commission (www.ftc.gov), or your state’s Attorney General’s Office.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com/

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Debt relief, Debt settlement, Financial Planning, Orange County, Personal Finance
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What Property Do I Get to Keep After Filing Bankruptcy?

Tuesday, July 19th, 2011

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Five Ways Bankruptcy Will Improve Your Life

Thursday, July 7th, 2011

“There are several ways that bankruptcy will improve your life, even though going through the process can be a physical and emotional strain,” says Bert Briones, an Irvine, CA bankruptcy attorney from Red Hill Law Group, PC.

Save Your Home

Losing a home to foreclosure is something that is clearly unwanted. A Chapter 13 bankruptcy can help save your home, perhaps eliminate a second mortgage, and allow you to catch up with missed payments.

Stop Creditor Calls

Creditor harassment and even wage garnishment are perhaps something you are dealing with, along with the possibility of being sued. Your life will immediately improve after your bankruptcy filing because this will all stop.

Reduce or Eliminate Strain on Your Relationships

Financial difficulties can easily strain a marriage and/or other family situations. Eliminating debt by filing a bankruptcy can ease the stress and help you rebuild your relationship with your family.

Improve Your Financial Planning Skills

Often times, post-bankruptcy attitudes change and people will make a positive permanent commitment to how they use money. Changing financial habits is a popular result of filing bankruptcy and can be life-changing.

Begin With a Fresh, New Start

Start rebuilding your credit and make additional changes to improve your life, using your experience in a positive way.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com/

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