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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Recent Posts in Credit and Bankruptcy

  • How to Get Rid of Credit Card Debt Through Bankruptcy

    Posted By Allmand Law Firm, PLLC || 29-Aug-2016

    Excessive debt is one of the major reasons why people file for bankruptcy. In many cases, the excessive debt is the result of paying for necessities such as medical bills and vehicle repairs. While there are some exceptions, most credit card debt can be discharged when a person successfully completes Chapter 13 or Chapter 7 bankruptcy. Chapter 7 Bankruptcy and Credit Card Debt When you file for ...
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  • How Can I Rebuild My Credit After Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 23-Sep-2015

    Many people believe that bankruptcy permanently destroys your credit, but this couldn’t be further from the truth. In fact, bankruptcy may even save your credit in cases where an old debt kept your score down. Now that you have gotten a fresh financial start, there are a number of steps you can take to begin rebuilding your credit. How Does Bankruptcy Affect my Credit Score? The purpose of ...
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  • Six Actionable Tips on Writing a Credit Dispute Letter

    Posted By Allmand Law Firm, PLLC || 12-Jun-2014

    The Fair Credit Reporting Act was created to help consumers dealing with errors on their credit report. When disputing something on your report, you will want to take action in the best possible manner. Otherwise, with one mistake, you will be forced deal with a host of problems. With this in mind, here are six actionable tips on a writing credit dispute letter: Provide Clear and Concise Copies ...
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  • Credit Card Debt and Bankruptcy: When You May Want to Wait to File

    Posted By Allmand Law Firm, PLLC || 4-Dec-2013

    Credit card debt is one of the most common forms unsecured debts to be discharged in bankruptcy. If you used your card recently for large purchases it is possible they may be reviewed to make sure they can be successfully discharged. This is due to certain charges that may not be eligible for elimination, and in this case you may want to wait to file your case. Credit card companies can dispute ...
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  • Getting Protection through Bankruptcy Before Creditors Make Their Move against You

    Posted By Allmand Law Firm, PLLC || 22-Aug-2013

    It is common for people to have outstanding debt and while the amount owed varies, many may not be aware of how close they are to having their creditor take legal action against them. For a number of debtors, legal action from a creditor comes at a time they least expect it. This reason alone is enough to encourage debtors to seek advice from an experienced bankruptcy attorney. If you find ...
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  • If I Am Being Sued by a Creditor Can Bankruptcy Get Rid of the Lawsuit?

    Posted By Allmand Law Firm, PLLC || 15-Aug-2013

    Getting rid of a lawsuit in bankruptcy depends on a few factors. One of the main factors includes determining if the liability associated with it is dischargeable. Sometimes a debtor may receive a lawsuit or learn of being sued and ignore it. This can turn into a default judgment giving creditors an upper hand on taking more legal action against you, such as a lien or wage garnishment. In ...
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  • Can a Bank Account Belonging to My Spouse Be Sought by Creditors in Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 8-May-2013

    In many cases, assets that belong to your spouse may be off limits to creditors but it depends on the circumstances of the spouse filing for protection. There are a few factors to review that may give clarity regarding account funds. You need have a good idea of what assets are considered part of your bankruptcy estate, learn whether the bank account in question is considered community property, ...
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  • Fraudulent Credit Card Charges in Bankruptcy

    Posted By admin || 26-Dec-2012

    Bankruptcy and Fraudulent Credit Card Charges Credit card debt is one of the most common forms of debt that is discharged or eliminated in bankruptcy. While bankruptcy is a powerful tool that can eliminate qualifying debt, if a credit card company senses fraud in your case, this may reduce chances of the debtor getting debt discharged. So what is the difference between card charges that are ...
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  • Plastic Dependency

    Posted By admin || 17-Sep-2012

    Credit Cards have been around for decades, and the debt that can come along with them can pose real financial challenges. Here's a look at the state of credit card debt and how it's affecting Americans.
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  • How Does Filing Bankruptcy Protect You from Creditors?

    Posted By admin || 10-Sep-2012

    When a person or business seeks bankruptcy protection, some may wonder how a filing offers protection. When bankruptcy is filed a protection order known as the automatic stay becomes effective immediately. The action is a welcomed relief effort that gives debtors a chance to review their situation and seek the best solution without pressuring collection actions from the creditor. The Bankruptcy ...
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  • If I am Being Sued is it Too Late to Make an Agreement with the Creditor?

    Posted By admin || 4-Sep-2012

    Ignoring credit card debt is common for many consumers, that is, until a lawsuit is filed against you for outstanding debt owed. You still have the option of making an agreement with the creditor and possibly adverting the suit altogether. An agreement to pay what you owe may reduce legal collection action taken against you, which could include garnishing wages or a bank levy. Put an Agreement in ...
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  • How is Credit Card Debt Handled in Chapter 13 Bankruptcy?

    Posted By admin || 16-Aug-2012

    Credit Card Debt and Bankruptcy Chapter 13 bankruptcy helps debtors reorganize their debt into manageable payments scheduled over a certain time period. When it comes to credit card debt, the amount you pay may vary depending on multiple factors. If you make necessary payments according to your plan you may qualify to have any remaining credit card debt discharged or eliminated when your Chapter ...
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  • Dividing Credit Card Debt in Divorce

    Posted By admin || 5-Jul-2012

    Splitting Credit Card Debt in Texas Debt including credit card debt is divided in divorce depending on what state you reside in. Community property states such as Texas separate debt differently than equitable distribution states, also referred to as common law states. There are a few things that can be done before debt is divided that may make the process a little easier. When the decision is ...
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  • Can Creditors Pursue My Cosigner if I File Bankruptcy?

    Posted By admin || 29-Jun-2012

    When you file bankruptcy, most often the debtor who files the petition, also known as the primary borrower, is protected from creditors. This may vary depending on which chapter is filed. It is possible for creditors to pursue collection attempts with the cosigner since they originally agreed to pay if you are unable to. There are a few options to consider in helping protect the cosigner: It's ...
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  • How is Credit Card Debt Discharged in Chapter 7 Bankruptcy?

    Posted By admin || 20-Jun-2012

    Chapter 7 bankruptcy allows qualifying debt such as credit card debt to be discharged. Once a discharge is granted the creditor can no longer pursue payment from the debtor. In most cases, the debtor is not required to pay income tax on debt that has been discharged and the debt is no longer enforceable against you. Credit card debt is an example of unsecured debt; signature loans and medical ...
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  • When You Are Getting Sued for Past Credit Card Debt

    Posted By admin || 29-May-2012

    Being Sued for Past Credit Card Debt? Many consumers wonder if getting sued for past credit card debt is possible. The truth is creditors have the option to sue for debt for several years after payments have stopped being made on the account. It may depend on how much is owed on the account but in many cases, creditors look to collect if the debt has yet to expire. If the statute of limitations ...
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  • Do I Have to Appear in Court if I am Being Sued for Credit Card Debt?

    Posted By admin || 18-May-2012

    Being Sued by a Creditor? Being sued by a creditor gives them legal means to collect from you when you haven't paid toward your debt. If you receive a summons you may wonder whether or not to appear in court. Many debtors assume that if they don't have the money, what is the point in showing up in court? While you should appear in court at the scheduled time listed on the summons, you are not ...
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  • Can I Consolidate Credit Card Debt While Unemployed?

    Posted By admin || 16-May-2012

    During a period of unemployment you have some serious decisions to make regarding outstanding debt. Debt consolidation is often an option consumers may use to help manage their debt. This includes combining outstanding loans with a new loan that pays off what was owed, leaving just one payment to be made each month instead of multiple payments on different accounts. It may sound like a great idea ...
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  • Dealing with a Lawsuit From a Credit Card Company

    Posted By admin || 4-May-2012

    Being Sued by a Credit Card Company? Being sued for credit card debt makes many consumers nervous about dealing with the situation. The issue becomes more complicated if you're unsure if the debt is really yours or you can't afford to pay it. While creditors should be able to provide proof related to their claim, there are several actions consumers should consider when dealing with a debt lawsuit. ...
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  • What You Should Know About Credit Card Delinquencies and Potential Lawsuits

    Posted By admin || 16-Apr-2012

    Credit card debt is the most common form of debt that is unsecured. This means that if you default on payments or choose not to repay what is owed, the credit card company has a right to sue. Depending on what is owed on the account, a lien may be placed against property or you could experience garnishment of wages. Taking advantage of your rights includes validating debt in question and ...
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  • Can I Get Credit Card Debt Discharged that Belongs to My Deceased Spouse?

    Posted By admin || 6-Apr-2012

    In most cases, if a credit card belongs to one person, the same individual would be responsible for debt incurred on the card. When your deceased spouse has credit card debt, there are different factors that help determine who is responsible for paying the debt upon death. When a spouse passes away, it will need to be determined what money the estate has available to pay toward outstanding debt. ...
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  • Bankruptcy Basics: How to Avoid a Credit Card Dispute

    Posted By admin || 20-Jan-2012

    Avoiding Credit Card Disputes Under the bankruptcy laws enacted in 2005, bankruptcy petitioners need to be more cautious about their credit card use than ever before. It's not just because bankruptcy courts can dismiss bankruptcy petitions over what they deem to be overtly fraudulent use - it is because card lenders can file a dispute to block your bankruptcy petition. Understandably, credit card ...
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  • What To Do When A Creditor Decides To Sue

    Posted By admin || 29-Aug-2011

    Being Sued by a Creditor? Now that the amount of delinquencies and defaults are on the rise, many creditors are using lawsuits more frequently to collect debts. What should a debtor do if they receive notice of a creditor lawsuit filed against them? Below are few tips: Tip #1: Don't panic. Lawsuits filed by creditors are used to not only collect debts but to intimidate the debtor into acting in a ...
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  • Paying The Minimum On Credit Cards is Not Enough To Avoid Bankruptcy

    Posted By admin || 19-Aug-2011

    If you can only afford to pay the minimum payment required on your credit cards, you probably need to file bankruptcy. Minimum payments are designed so that the debtor making the payment will pay the maximum amount of interest on their debt and pay on the debt for the maximum amount of time. It probably makes no sense to struggle paying off a credit card for 8 years when you can discharge it in a ...
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  • Post-Bankruptcy Survival: Four Things You Should Know About Your Credit Card

    Posted By admin || 16-Aug-2011

    One of the first tools post-bankruptcy debtor uses to rebuild their credit score is the credit card. While they may start off with a secured credit card, within a year of making regular payments post-bankruptcy debtors can graduate to unsecured credit cards. But what are some of the important facts debtors coming out of bankruptcy need to look at before choosing a credit card? Let's take a look at ...
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  • Post-Bankruptcy Survival: Prepaid Debit Cards Truth And Lies

    Posted By admin || 2-Aug-2011

    Prepaid Debit Cards Truth And Lies Prepaid debit cards are becoming increasingly popular as many Americans facing financial troubles are finding it difficult to get a regular checking account due to bounced checks and overdraft issues. But for debtors exiting bankruptcy prepaid debit cards are not the best route to normalizing their financial situation. Here's why: Prepaid Debit Cards Do Not ...
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  • Post-Bankruptcy Survival: Will CFPB Improve Credit Report Accuracy?

    Posted By admin || 28-Jul-2011

    The newly formed Consumer Financial Protection Bureau's (CFPB) oversight obligations will include the big three credit reporting Equifax, Experian and Trans Union. But it's still not clear exactly what type of powers they will have over these companies. However, there is some speculation that the CFPB's powers will extend well beyond those of the FTC. Let's take a look at what changes ...
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  • Are Checks, Debit Or Cash To Your Benefit?

    Posted By admin || 8-Jul-2011

    As the banking industry is poised to lose $10 billion in overdraft and merchant fees, some banks are looking to tack on fees to debit cards and checking accounts to make up for the revenue shortfall. Already, JPMorgan Chase, Wells Fargo and many other banks are reducing or phasing out rewards programs that gave users cash back for using debit cards. Chase has been testing a monthly $3 fee for ...
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  • Consumer Debtors Targeted With Risky "Business Credit Cards"

    Posted By admin || 28-Jun-2011

    Just when consumers thought they were safe from the credit card shenanigans of big banks, a new culprit has found its way into their wallets. Business credit cards, which are being marketed to individual debtors at an alarming rate, are not covered by the Credit CARD Act and by extension these cards can change their terms and conditions giving the debtor no right to opt out and they can also ...
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  • Protecting Social Security Income From Creditors

    Posted By admin || 27-Jun-2011

    How to Protect Your Social Security Income From Creditors If you're retired or disabled, then you're probably receiving social security payments. Those payments cannot be garnished by creditors except for the payment of child support, tax debt or debts accumulated due to a social security overpayment/fraud etc. Even if a debtor exited bankruptcy with some secured debt such as a car payment or ...
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  • Why Borrowers Refuse To Call Credit Counseling Agencies

    Posted By admin || 8-Jun-2011

    It has been over a year since the Credit CARD Act required credit card companies to provide the toll-free numbers for non-profit credit counselors on credit card statements. However, according to the National Foundation for Credit Counseling, they have only received 150,000 calls from the 500 million statements printed since February 2010. Why is that? Well let's take a look at how credit ...
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  • Post-Bankruptcy Survival: Combating The "Limited Credit History" Obstacle

    Posted By admin || 3-Jun-2011

    After receiving your bankruptcy discharge, it's best to immediately begin rebuilding your credit history using a combination of secured credit cards and eventually other types of debt instruments. However, some post-bankruptcy debtors fail to develop a diverse credit history and may find themselves unable to qualify for some types of loans because of their limited credit history even if they have ...
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  • What Happens When A Creditor Challenges A Bankruptcy Discharge?

    Posted By admin || 30-May-2011

    When the Creditor Challenges the Bankruptcy Discharge Sometimes when a debtor attempts to discharge certain debts in bankruptcy, the creditor will challenge the bankruptcy discharge. The creditor is allowed to file what's called an Adversary Proceeding so that they can plead the case of why the debtor should not be allowed to discharge a certain debt in bankruptcy. A creditor is only allowed to ...
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  • Post-Bankruptcy Survival: Beware Of Mandatory Arbitration Clauses

    Posted By admin || 30-May-2011

    What Are Mandatory Arbitration Clauses? More credit card companies and other lenders are adding mandatory arbitration clauses to their contracts and agreements with debtors. A mandatory arbitration clause basically says that both parties are prohibited from seeking judicial relief if a conflict arises and all disputes must be decided in arbitration. Sounds fair? Well it may sound fair if you're a ...
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  • Motion For Relief Denied Due To Possible Harm To Creditors

    Posted By admin || 18-May-2011

    In a recent Chapter 11 bankruptcy of a business, the debtor was challenged by a creditor who claimed that the debtor/company was illegally using their brand to do business. The debtor, who had purchased a franchise license, was sued after they allegedly violated a non-compete agreement. The creditor/ franchisor in this bankruptcy case claims that the debtor is doing irreparable harm to its ...
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  • Good News For Credit Card Debtors

    Posted By admin || 31-Mar-2011

    Have you experienced a credit card interest rate hike since January 2009? If so, you could be one of millions of credit card debtors who are granted a lower interest rate in the coming months. The Federal Reserve reported that credit card interest rates rose from an average of 13.57 percent in 2008 to 14.31 percent in 2009. Many credit card debtors mistakenly believed that this increase was due to ...
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  • Post-Bankruptcy Survival: Don't Let Credit Card Changes Take You By Surprise

    Posted By admin || 9-Feb-2011

    There is good news and bad news for post-bankruptcy debtors searching for credit card offers in the coming year. The good news is that more credit card issuers are willing to lend to more consumers, even those who have filed bankruptcy. Credit card solicitations have nearly doubled in the past year and many of them target the sub-prime market, those with little credit, poor credit and those ...
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  • Four Dangers Of Debt Consolidation

    Posted By admin || 1-Feb-2011

    Debt consolidation is a favorite amongst debtors trying to avoid bankruptcy But there are some hidden dangers in debt consolidation that every debtor should know about: Canceling a card before you have transferred the balance to the consolidated loan can be costly. Some credit card issuers will punish debtors with fees or an increased interest rate if they cancel their card while they still have a ...
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  • We Must Act Now To Stop Prepaid Debit Card Abuse

    Posted By admin || 18-Jan-2011

    Sen. Richard J. Durbin is on the campaign trail again, but not for his seat in Congress, the legislator has his sights on the abusive practices of the burgeoning prepaid debit card industry which is known for its tendency to charge high fees for everything from activating the prepaid debit card to checking the balance. Durbin wants to put a stop to the most abusive fees in the prepaid debit card ...
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  • Post-Bankruptcy Survival: Rewards Credit Cards Create More Debt

    Posted By admin || 17-Jan-2011

    Post-bankruptcy debtors who sign up for credit cards which offer "rewards" such as cash back, may be at a higher risk for accumulating large amounts of debt. In a recent study which analyzed the spending habits of 12,000 credit card consumers, it was found that debtors who have rewards credit cards are likely to spend more and accrue more debt. The initiation of a 1% cash rewards program yielded, ...
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  • Post-Bankruptcy Survival: Use Credit Cards With No Spending Limit Sparingly

    Posted By admin || 17-Jan-2011

    Depending on your credit card usage habits, having a credit card with no spending limit could have a negative impact on your FICO score. Credit cards that have no spending limit report their cards to the credit reporting agencies in one of two ways, or a) as an open account or b) as a revolving account. If the credit card is reported as an open account it will have no impact on the debtor's credit ...
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  • Rebuilding Credit After Bankruptcy

    Posted By admin || 3-Jan-2011

    How to Rebuild Your Credit After Bankruptcy Many people avoid bankruptcy because they have heard the stories of how bankruptcy stays on your credit report for 7-10 years. They believe that this will ruin any chances of ever having a good credit score. Untrue. In fact when you file bankruptcy and receive your immediate debt relief you begin to rebuild your credit. There are more factors involved in ...
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  • Is Debt Settlement Better For Your FICO Score Than Bankruptcy?

    Posted By admin || 18-Dec-2010

    Your FICO Score, Debt Settlement and Bankruptcy As we have mentioned previously, many debtors prefer to go to any lengths to avoid bankruptcy, including going to debt settlement companies to settle their debt for "pennies on the dollar." But is debt settlement really better for your FICO score and credit rating? Not really. An account status that indicates debt settlement is bad news for your ...
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  • Are Credit Card Companies Buying Their Way Into Students' Wallets?

    Posted By admin || 6-Nov-2010

    Colleges, alumni associations and related groups were paid $83.5 million in 2009 under agreements with credit card companies, according to a recent Federal Reserve report. Under the credit card agreements, schools and affiliated groups were paid for each new account they generated. How many of those credit card accounts were with students? Of the agreements reported, about 40 percent were with ...
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  • Are Owners Of An LLC Liable For Credit Card Debt In A Business Bankruptcy?

    Posted By admin || 29-Oct-2010

    Are You Liable for Credit Card Debt In A Business Bankruptcy? When a Limited Liability Company (LLC) files Chapter 7 bankruptcy generally speaking the owners of the company are not held personally liable for debts held by the company. An LLC, like a corporation is considered a separate business entity from the owners. But there are some scenarios where owners of an LLC could be held personally ...
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  • Why We Should Limit The Use Of Credit Checks By Employers

    Posted By admin || 27-Oct-2010

    Limit The Usage Of Credit Checks By Employers Over 60 percent of employers are using credit checks to screen job candidates. But how effective are they? While some employers say that a job candidate with bad credit may be at higher risk for employee fraud and theft, the truth is that there are no definitive studies that prove this to be true, especially in this economy. A matter of fact, using ...
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  • Debtor Profile: When Credit Card Debt Destroys Retirement

    Posted By admin || 3-Oct-2010

    Marti Deadwyler is a 64-year-old living with her retired husband. Deadwyler and her husband were doing fine right before she was forced to quit her job due to family issues, and then take an early retirement because she was unable to find other work when she was ready to return to the work world. Before Deadwyler's forced retirement she was able to take care of the family but after experiencing a ...
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  • Debt Strategies: Dealing With Credit Card Debt When Facing Unemployment

    Posted By admin || 30-Sep-2010

    Handling Your Credit Card Debt During Unemployment Are you facing unemployment and have a large amount of credit card debt ? Below are a few tips on how you should tackle credit card debt when you're facing unemployment: Build up Your Emergency Fund Many debtors facing imminent unemployment use the income in the months preceding their layoff to pay off credit card balances, this is a huge mistake. ...
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  • Subprime Credit Cards, The Next Financial Crisis?

    Posted By admin || 28-Sep-2010

    U.S. banks have charged off $50 billion in credit card loans which represents 5.47 percent of all credit card loans. That's an increase of 2 percent in just one year. Some are saying that the large amount of charge offs is a sign that the credit card market will be the next crisis during this recession. And some are saying that the credit card industry's reliance on poor and low-income borrowers ...
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  • Statute Of Limitations, Credit Reports and Your Credit Card Delinquency

    Posted By admin || 27-Aug-2010

    Debtors facing collections actions by creditors are often unaware of time limits concerning their delinquent credit card accounts and other debts. In the state of Texas, a creditor cannot sue a debtor for payment on a delinquent account four years after last payment. For example, if you last made a payment on a credit card in 2006, the creditors would only have until 2010 to sue you for the ...
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  • Final Phase Of Credit Card Act Takes Effect

    Posted By admin || 16-Aug-2010

    The final phase of the Credit Card Accountability Responsibility and Disclosure Act's three phase implementation too effect this past weekend. The law, which was signed by President Barack Obama in May 2009, is designed to restrict credit card company practices that harm consumers. Credit card consumers will now enjoy the following protections: Credit card companies will be prohibited from ...
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  • Five Signs That Your Credit Cards Are Pointing You Towards Bankruptcy

    Posted By admin || 12-Aug-2010

    Credit card debt can be a useful indicator of how well you are handling your debt load. Below are five signs that your credit cards are pointing you towards bankruptcy: Your credit cards are maxed out. If your credit cards are charged to their limit, then it is a clear sign that you may be heading towards bankruptcy. Maxed out credit cards are clear indicators that you have been relying heavily on ...
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  • Three Changes That May Keep Some College Graduates Out Of Bankruptcy

    Posted By admin || 8-Jun-2010

    Extended dependent healthcare coverage for unmarried children up to the age of 26. Under the health care bill, as of September 23, 2010 (if all goes as planned) many youth will have access to their parents' healthcare coverage through college and even afterwards during a time when many college graduates struggle financially. In recent years there has been an increase in the number of college ...
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  • Five Signs That You May Be At Credit Card Default Risk

    Posted By admin || 8-Jun-2010

    You pay the minimum payment on your credit card. Paying the minimum payment requirement on your credit card may be a sure sign that you are at credit card default risk especially if you can't afford to pay more than your credit card's minimum payment. You use one credit card to pay the minimum payment on another. You are probably on the edge of default if you are using one credit card to pay the ...
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  • Living The American Dream Without The Debt

    Posted By admin || 23-May-2010

    What is the American Dream? Before the economic recession began 3 years ago, many Americans may have described the American dream as having a big house, big car and access to lots of credit so that they too could live like the rich and fabulous. But after millions of Americans lost their jobs to business contraction, their homes to foreclosure and their access to easy credit to the credit crisis, ...
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  • Stop The Faux Moral Outrage About Personal Bankruptcy

    Posted By admin || 22-May-2010

    As the number of Americans filing bankruptcy reaches an all time high there has been a rise in the faux "moral outrage" against bankruptcy. Many so called debt repayment "gurus" are thumbing down their collective noses at bankruptcy and the debtors who rely on bankruptcy to get a fresh financial start. Many of these "gurus" seem to be on a witch hunt for spendthrifts who are using bankruptcy to ...
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  • Three Reasons Why You Should Not Pay Taxes With A Credit Card

    Posted By admin || 11-May-2010

    It has become a lot easier for taxpayers to pay their taxes using a credit card; but doing so may not be a good idea. Below are three reasons why a debtor should not pay their taxes with a credit card. You will end up paying more. Yes paying your taxes late will result in interest and penalty fees; but that won't be nearly as much as the interest you will pay on a credit card. Compared to credit ...
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  • Overcoming Challenges Facing Companies Considering Chapter 11 Bankruptcy

    Posted By admin || 11-May-2010

    In many cases only about half of businesses who need to file bankruptcy actually go ahead and file Chapter 11 bankruptcy. At a time when businesses are facing more economic troubles than ever, why is that so many choose to forgo the benefits of bankruptcy? Well mostly because perceived challenges either real or imagined. Let's take a look at some of these challenges and how businesses can overcome ...
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  • Debtors May Not Unfairly Favor Student Loan Creditors During Bankruptcy

    Posted By admin || 10-May-2010

    In the Chapter 13 bankruptcy case of Parrott, Gregory S. and Karen S.; In re, the bankruptcy court refused to confirm the debtors' repayment plan saying that the debtors unfairly treated the student loans as long-term debt to the detriment of unsecured creditors. The details of the bankruptcy case: The Chapter 13 debtors' plan proposed to bring payments on two student loans current while ...
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  • Don't Be Fooled By "Free" Credit Health Companies

    Posted By admin || 8-May-2010

    It's been seven years since credit bureaus have been required by law to provide Americans with annual access to their credit reports, at no charge; but the the web site created to manage the process has been overshadowed by a variety of companies claiming they can offer "free" credit health reports leaving many consumers confused and out of money they could have spent ...
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  • How To Avoid A Second Bankruptcy Filing

    Posted By admin || 7-May-2010

    Filing bankruptcy offers debtors the opportunity to have a fresh new start financially; however in order to avoid filing bankruptcy again, there are few habits debtors need to develop. One of the most common reasons that debtors fall behind on their bills and end up needing to file bankruptcy is the lack of an emergency fund. One of the most important foundations of financial security is having an ...
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  • Creditor Must Provide Solid Evidence When Accusing Debtors Of Malicious Acts

    Posted By admin || 4-May-2010

    In the bankruptcy case of Powell, James D. and Betty J., In re (Ameri­can Bank of Commerce v. Powell) , the bankruptcy court ruled against the creditor who accused the debtor of willfully and maliciously causing injury. The details of the bankruptcy case: The elderly debtor kept "pasture cattle" on 20 leases that included properties with rivers and heavy mesquite growth. The debtor maintained his ...
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  • Bankruptcy Court Allows Discriminatory Repayment When Benefiting Debtor Rehabilitation

    Posted By admin || 2-Apr-2010

    In the Chapter 13 bankruptcy case of Caccamise, Joseph and Cynthia; In re, the bankruptcy court ruled that it was okay for a debtor to pay one credit card in full while only paying others partially because the debtor needed access to the credit card for her business. The details of the bankruptcy case: The below-median income Chapter 13 debt­ors had $5,195 in take-home pay and $5,088 in expenses. ...
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  • How The "New Payment Hierarchy" Can Be A Path To Financial Destruction

    Posted By admin || 16-Mar-2010

    Credit experts are explaining the new trend of American debtors paying credit cards off to the detriment of their home mortgages as the 'new payment hierarchy." But what some so-called credit experts may describe as a new payment hierarchy is really just more damaging behavior that could lands millions of Americans into foreclosure and on the path of financial destruction. ... a small slice of ...
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  • Be Cautious When Using Alternative Financing, It Could Land You In Financial Trouble

    Posted By admin || 26-Feb-2010

    Despite a push to increase small-business lending, it is still very difficult for small companies to get traditional loans from banks. That fact has many small businesses looking to less traditional means to finance their business ventures; however this trend could land some start-ups in financial straits. A recent survey by the National Small Business Association found that a third of firms can't ...
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  • Four Bad Reasons For Delaying Bankruptcy

    Posted By admin || 23-Feb-2010

    Debtors delay bankruptcy for many reasons and while there may be some legitimate reasons to delay bankruptcy most of them are not legitimate. Below are four bad reasons for delaying bankruptcy. You're hoping that you will "come into" some money soon, (new job, salary increase, lotto winning etc.) and that it will be enough to pay off your debts and avoid bankruptcy. The reality is that this may be ...
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  • Five Ways To Get Out Of Credit Card Debt

    Posted By admin || 16-Feb-2010

    In the throes of this recession, the average Americans is just piling on more credit card debt and finding it more difficult to find a way out. According to a report released by TransUnion, as of October 2009, the national average for credit card debt $5,612 per person. The average! That's scary knowing that the job situation is only getting worse with at least one company announcing job losses at ...
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  • Credit Checks, Bankruptcy And Employment

    Posted By admin || 19-Nov-2009

    If you're applying for a job in finance, accounting or a position that requires the handling of cash, expensive merchandise or a security clearance, you may be subjected to a credit check. If you're behind on your bills, have delinquencies, defaults, judgments or liens, there a few things you should know. While a company is restricted from not hiring you simply because you filed bankruptcy, they ...
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  • Considering Prepaid Credit Cards? Proceed With Extreme Caution

    Posted By admin || 5-Nov-2009

    According to an article in the Salt Lake Tribune, since the recession began many consumers are choosing prepaid credit cards over traditional bank accounts and unsecured credit card accounts. How It Works The consumer buys a prepaid credit card from a retailer, loads it with money and sometimes even creates a direct deposit account with their employer. The cards are used to pay bills and everyday ...
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  • Silent Credit Card Revolt?

    Posted By admin || 26-Oct-2009

    According to an article in the Market Watch, credit card consumers are launching a massive, but silent revolt against credit card companies in response to higher interest rates, outrageous fees and unwarranted cuts to their credit limits. The article said: "...consumers cut $11.98 billion in borrowing in August, trimming their outstanding debt to $2.46 trillion, representing a 5.8% annual rate of ...
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  • What Creditors Don't Want You To Know About Bankruptcy!

    Posted By admin || 25-Oct-2009

    1. There is no such thing as a bankruptcy just for those who did everything right. Let's get this straight, bankruptcy is designed for any debtor who is drowning in debt and can no longer afford to pay his/her bills. It doesn't matter if you made foolish decisions in the past or if you did everything right. The law does not discriminate against those who have made foolish financial mistakes--a ...
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  • State Legislators Seek To Shield Banks From Tough Credit Card Rules

    Posted By admin || 5-Oct-2009

    According to an article in the Star-Telegram, moderate House Democrats are drafting a proposal that would shield big banks from potentially tougher state regulations of credit cards, mortgages and savings accounts. The article said: "...their proposal, spearheaded by Illinois Democratic Rep. Melissa Bean, isn't sitting well with consumer advocates who say banks shouldn't be allowed to skirt state ...
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  • A Credit History Statement

    Posted By admin || 28-Sep-2009

    After bankruptcy, a credit history statement can make your credit report look better. After your bankruptcy is complete, you need to get your financial life in order. Of course one of the first steps to doing this is to improve your credit report. You probably have heard all of the common ways to improve your credit report, but one thing you might not know about is your right to have a credit ...
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  • Charge It! Charge It! Charge It!

    Posted By admin || 18-Sep-2009

    Charge it! Charge it! Charge it! has become a common American mantra over the past few decades as Americans rack up more and more credit card debt. Now, according to an article at, consumers are starting to pay their mounting medical bills with plastic as well. Consumer advocates say this is a dangerous trend, but experts believe that lenders are going to cash in on this lucrative ...
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  • Mastering The Credit Score Game After Bankruptcy

    Posted By admin || 16-Sep-2009

    Bankruptcy offers the perfect opportunity to rebuild your credit score by using credit cards and other forms of debt shrewdly. Here a few tips on how to master the credit score game after filing bankruptcy: Tip #1 - Go for the top credit cards and other loan products first. Many debtors mistakenly believe that once they file for bankruptcy they are forever relegated to the "trash heap" of ...
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  • Keeping Credit Cards After Your Bankruptcy

    Posted By admin || 9-Sep-2009

    Many people find their credit card canceled even though they had a zero balance and the credit card was not included in their bankruptcy schedule. Imagine six months after your bankruptcy has been discharged. You've turned your financial situation around and there is no more worrying how you are going to pay your bills. Everything is on the up and up; you're budgeting well and have a little money ...
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  • FTC Cracking Down on Scammers

    Posted By admin || 8-Sep-2009

    Don't Fall for Credit Repair Scams When Trying to Rebuild Your Credit For the last year, almost every economist and politician has developed a theory on who or what is to blame for our current recession. The reasons range from government inaction to the foreclosure crisis. Regardless of how it started, the recession is still here and the Federal Trade Commission (FTC) is grossly aware of its ...
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  • Making the Grade and Improving the Grade

    Posted By admin || 4-Sep-2009

    Graduation from high school or college usually comes with a relief that you no longer have to struggle to "make the grade." That bubble bursts, though, when we discover that our credit report essentially serves as a continuing report card. Once your credit GPA drops, it can be somewhat challenging to repair your credit rating. Fortunately, there are some simple strategies that can help you pull ...
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  • Credit Card Industry Legislation Forcing Credit Card Issues to Reduce Rewards

    Posted By admin || 4-Sep-2009

    Credit card companies may be forced to cut rewards to once again become profitable. An article on said that credit card companies are cutting back on rewards. The changes are a result of falling revenue. One reason for falling revenue is recently passed and currently pending legislation that will put regulations on credit card companies. Last week a reform law passed that will put ...
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  • Will Mandatory Arbitration Go the Way of the Dinosaurs?

    Posted By admin || 4-Sep-2009

    Right now, most credit card consumers are required to agree to mandatory arbitration when disputes arise in order to receive their credit card. But according to an article in the Dallas Morning News, mandatory arbitration clauses in credit card agreements and other consumer agreements may be in its final days. The article said: "...the Obama administration's proposal to create a Consumer Financial ...
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  • Credit Card Companies Restrict Credit Access

    Posted By admin || 25-Aug-2009

    According to an article in the Star-Telegram, credit card companies slashed credit limits for an estimated 58 million credit cardholders within the past 12 months, many of those credit card consumers had high credit scores, no missed payments and in some cases no balance. FICO studied a group of 30 million credit card consumers to find out exactly who was being targeted by credit limit cuts. The ...
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  • AMEX and Discover Kill Over-the-Limit Fees

    Posted By admin || 18-Aug-2009

    According to an article in the Star-Telegram, American Express and Discover credit card companies plan to eliminate their over-the-limit fees. The article said: "The two companies said separately Tuesday they will soon end the charges that have generated widespread criticism from consumers. The moves come before credit card regulations set to take effect in February limit the way credit card ...
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  • Credit Card Debt Can Bankrupt New Businesses

    Posted By admin || 18-Aug-2009

    According to an article in the Dallas Morning News, a new study by the Ewing Marion Kauffman Foundation revealed that new businesses using credit card debt to finance their ventures are less likely to survive the first three years. The article said: "The study indicates that in many companies' first few years, their credit card debt increases and then stabilizes. The businesses with high credit ...
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  • My Corporation is Drowning in Debt, Can Creditors Come After ME?

    Posted By admin || 16-Aug-2009

    Many business owners/debtors considering bankruptcy are concerned about protecting their personal assets. If a business is a corporation, some debtors assume that creditors cannot pursue them personally for debts owed by the corporation. The truth is that creditors may have the power to pursue the debtor's personal assets under certain circumstances. The most important question a business owner ...
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  • Banks Lose On Credit Cards But Rake in Billions on Overdraft Fees

    Posted By admin || 14-Aug-2009

    According to an article in the Daily Finance, the amount of profits banks are earning from overdraft fees has nearly doubled since 2000 reaching a record $38.5 billion. The average bank overdraft fee rose from $25 to $26 for the first time in over 40 years, causing some consumers more trouble than their high interest credit cards. And many consumer advocates say, that's exactly the point of ...
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  • Do You Need a Debt Reality Check?

    Posted By admin || 13-Aug-2009

    The current economic downturn has many debtors scrambling to pay off credit card debt, personal loans and even their mortgage while they still have an income to do so. But many debtors are finding that no matter how hard they try, their debt load just seems to increase or decrease by very little. The reality is that just because a debtor pays "something" on their credit card debt (or other debts), ...
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  • Current Monthly Income, Bankruptcy and You

    Posted By admin || 13-Aug-2009

    All debtors who are considering bankruptcy must calculate their current monthly income beforehand which will help the bankruptcy court determine whether a debtor qualifies for Chapter 7 bankruptcy or if they need to take the means test to determine their ability to repay their debts. Current monthly income is a term that is deceptive because it does not necessarily reflect the income a debtor is ...
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  • Bankruptcy Court Conceals Debtor's Identity Due to Medical Disclosures

    Posted By admin || 12-Aug-2009

    In the bankruptcy case of L.K.; In re, (Bankr. E.D.N.Y. 2009), a debtor's request to seal her records due to sensitive medical information revealed during the proceedings was denied; but the bankruptcy court agreed to conceal her identity in court records. The details of the bankruptcy case: A Chapter 7 bankruptcy debtor asked the bankruptcy court to seal her records because an adversary ...
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  • Faced With A Higher Minimum Payment on Your Credit Card?

    Posted By admin || 14-Jul-2009

    With new credit card legislation on the books, many credit card companies are coming up with new ways to minimize their risks and increase their profits. Because of this, credit card consumers need to be on the look out for changes even if they pay their minimum balance faithfully and on-time every month. One of the changes that may greet unsuspecting credit card consumers is a "minimum balance" ...
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  • Credit Cards and Your Rights

    Posted By admin || 7-Jul-2009

    As a credit card consumer there are certain rights and protections that you enjoy. Let's take a look: Did you know that if you lose your credit card or if it's stolen you are only liable for $50 maximum of unauthorized charges regardless of when you reported the loss or theft? This rule is part of the Fair Credit Billing Act which protects credit card consumers from suffering financially because ...
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  • Credit Card Delinquency Rises

    Posted By admin || 10-Jun-2009

    According to an article at CNN credit card delinquency rates jumped 11% in the first quarter of 2009 and the average borrower's debt rose 4.09% from the previous year to $5,729. The article said: "This increase could be an indication that tax refund checks, typically used to pay down balances in during the first quarter in years past, are now being used to cover daily living expenses," said Ezra ...
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  • How Long Can Creditor Judgments Last?

    Posted By admin || 10-Jun-2009

    Creditor Judgements Often when a debtor has failed to repay a loan or credit card debt, the creditor will attempt to seek a judgment by filing a lawsuit against the debtor. Once a creditor has won a judgment, they will have the power to collect on that judgment by using aggressive collection tactics such as garnishing wages and seizing the debtor's bank account. Usually a non-secured debt is only ...
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  • Credit Repair Scams Could Lead To Bankruptcy Troubles

    Posted By admin || 26-May-2009

    According to an article in the Arkansas Democrat Gazette, credit repair scam artists almost destroyed the Chapter 13 bankruptcy case of Ken Maddox, a shoe salesman who was struggling financially. The credit repair scammers promised Maddox that they could fix his credit report by "getting rid" of his Chapter 13 bankruptcy and paying off all of his debts for a fee of $375. You can only imagine what ...
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  • Stop Automatic Payments Before You File Bankruptcy

    Posted By admin || 23-Feb-2009

    Bankruptcy and Automatic Payments Modern banking almost requires automatic banking for nearly every expense, cell phone plans, cable television bills, utilities and even rent (sometimes); but using automatic deductions from your bank account or credit card during a bankruptcy can reek havoc on your bankruptcy case. Problems With Automatic Deductions For example, if a debtor has automatic ...
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  • Filing For Bankruptcy? STOP Using Those Credit Cards

    Posted By admin || 29-Jan-2009

    Many debtors filing for bankruptcy are under the gun financially which causes them to "rob Peter to pay Paul" in a game that I will call "credit card musical chairs." In an effort to keep their financial house of cards from tumbling many debtors use revolving credit to pay for even some of the most basic items such as food and rent, even withdrawing cash from one card to pay the minimum balance on ...
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  • I Always Make My Minimum Payments, Is Bankruptcy Right For Me?

    Posted By admin || 7-Jan-2009

    Yes! Making only minimum payments on debt, especially credit card debt will probably keep you in debt forever or at least almost forever. The real question is, can you pay off your debt and live your life. Are you able to save, invest in retirement, and provide medical insurance for you and your family? What about the future? Can you accomplish your financial goals and pay off your debt? If you ...
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  • Credit Will Become Harder To Get, Despite Bail Out

    Posted By admin || 3-Dec-2008

    According to an article in the Boston Globe, credit card companies will reduce lending by more than $2 trillion over the next 18 months. Prompted by rising credit card loan defaults, credit card companies want to take less risk and lend less money to even fewer debtors. In an environment where consumers are spending less and facing job losses, pulling back on credit card lending is an ...
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  • Can Creditors Seize My Kid's Bank Account?

    Posted By admin || 20-Nov-2008

    Many debtors filing for Chapter 7 or Chapter 13 bankruptcy may have bank accounts open for their children and want to know if a creditor can seize the money in those accounts during a bankruptcy. Well, the answer is no, a child's bank account cannot become the property of the bankruptcy estate. But that is only true if the child's bank account was setup properly. If the account was not setup ...
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  • No Loan Forgiveness For Credit Card Debtors

    Posted By admin || 14-Nov-2008

    Banks and consumer advocates failed to convince Federal bank regulators that a program designed to forgive huge portions of credit card debt was in the best interest of the economy. The Office of the Comptroller of the Currency rejected the proposal for a special program that would forgive as much as 40 percent of credit card debt held by consumers who don't qualify for existing repayment plans. ...
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  • Fix Creditor Preference Violations Before Filing Bankruptcy

    Posted By admin || 17-Oct-2008

    In both Chapter 7 and Chapter 13 bankruptcy, the debtor is not allowed to give any creditor preference over another. But what often happens is that before filing for bankruptcy a debtor will repay family and friends while not paying anything to unsecured creditors. This is unwise because if a bankruptcy case is filed within a year of these payments to family and friends, the trustee make take the ...
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  • Cash-Out Refinancing May Put Your Finances At Risk

    Posted By admin || 2-Oct-2008

    Although there are definitely benefits to cash-out mortgage refinancing there are some risks that homeowners should know. Inaccurate Appraisals - When taking out a cash-out mortgage refinance there is a risk that your home appraisal may be higher than its true value. If you enter into a cash-out refinance loan based on an inflated appraisal you could find yourself with an upside down mortgage, ...
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  • The Credit Card Holders Bill of Rights Act of 2008

    Posted By Allmand Law Firm, PLLC || 23-Sep-2008

    The average American family now carries over $8,000 in credit card debt. That figure is likely to increase given the present state of the economy. In many cases, it has been the unfair practices of the credit card companies that have contributed to the debt of the average American family. For several years now, credit card companies have hit consumers with unfair fees, unwarranted hikes in ...
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  • Ignoring Credit Card Debt Can Lead To Wage/Bank Account Garnishment

    Posted By Allmand Law Firm, PLLC || 18-Sep-2008

    With millions of Americans facing job losses and mounting credit card debt, many people are choosing to ignore calls and letters from debt collectors. Let's face it, when you're struggling to pay the basics (food and shelter), who has any money or energy left for the debts you can't pay off any time soon? But be forewarned, if collectors see that your debt is languishing and you ...
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