AVOIDING THE PAYDAY LOAN/TITLE PAWN TRAP
Unfortunately, many lower income consumers lack any type of savings or reserve to address an unforeseen expense or temporary reduction in come. An auto repair of $400 can be an intimidating obstacle to someone who does not have any money set aside, or available credit from a credit card, with which to pay for the […]
COSIGNERS AND BANKRUPTCY: WHAT YOU AND YOUR BANKRUPTCY ATTORNEY NEED TO KNOW
As part of the bankruptcy consultation process, bankruptcy attorneys will want to review all of your creditor information. This will include any debts that you may want to keep, such as a house loan or car loan. A consumer will be required to sign a verification, under oath, that they have identified all of their […]
CONSUMER BANKRUPTCY REQUIREMENTS THAT MADE SENSE
Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005. Many new requirements and restrictions were imposed with the goal of creating uniformity in the evaluation of bankruptcy cases. While there many requirements enacted that were needless and burdensome, there were also other requirements that made sense have added integrity and fairness to […]
CANCELLATION OF DEBT INCOME AND BANKRUPTCY: WHY SHOULD I BE CONCERNED?
As tax time approaches, many taxpayers are going to learn the hard way about cancellation of debt income when they file their taxes. If a creditor decides to forego the collection of a valid, undisputed debt, they may decide to cancel or “forgive” the debt. This means that the lender has decided that they will […]
Getting the Most of Your Income Tax Refund for Budget-strapped Consumers
As tax time approaches, and you are one of the fortunate ones to receive a significant refund, take the time to consider what you are going to do with it. This is especially important if you are behind on your bills, or may have gotten carried away with your holiday spending. If you have multiple […]
The New Bankruptcy Forms: Are They More Helpful for Pro Se filers?
Effective December 1, 2015, the Bankruptcy Courts of the United States required the use of recently revised petition and schedule forms. The petition and accompanying schedules have been lengthened considerably. The additional length is a product of the simpler language used to describe the assets, liabilities and transactions commonly disclosed in a bankruptcy filing. However, […]
Can Bankruptcy Improve My Credit Score?
It is easily understood why a bankruptcy would have a negative impact on a consumer’s credit score, but it is also important to remember why a potential lender is reviewing your credit history. The lender wants to evaluate the risk of default or non-payment. Based on the risk, the lender may decline to make the […]
Common Mistakes to Avoid When Your Income is Reduced
As a bankruptcy attorney who has met with thousands of distressed consumers in the Augusta area, I have had the opportunity to evaluate the different methods that people have used to reduce their expenses in situations where income has been temporarily eliminated or reduced. For instance, a consumer may have been laid off and the […]
Homeowner’s Association Fees & Bankruptcy
A frequent issue that arises in bankruptcy cases in Augusta, GA is the treatment of Homeowner’s Association fees (“HOA fees”) or regime fees. These fees represent an assessment against all homeowners in the association to maintain and improve common areas, such as a pool, gym or clubhouse. They may also cover road and infrastructure improvements. […]
Debt Management Plans: When It Makes Sense and When It Doesn’t
Many people who encounter financial hardship and fall behind on their credit card payments may consider a debt management plan. [i] In the standard debt management plan, a third party contacts the credit card companies on behalf of the consumer, and negotiates a reduced monthly payment. The consumer then pays a monthly payment to the […]