Unsecured debt includes any debt not linked to an
asset. Money freely lent to you based only on your promise to repay it
is unsecured. Types of debts that typically fall under the unsecured
category are credit cards not secured by property (most credit cards are
unsecured), medical bills, repossession deficiencies, foreclosure
deficiencies, signature loans, and any other type of standard consumer
credit line.
If you need help, contact us today.
There is no charge for your initial phone call.
Although most retail store
cards are unsecured, just because you have a plastic card from the store
doesn't automatically make the debt unsecured. One thing to keep in
mind, the contract with your creditor determines whether the debt is
secured or unsecured, sometimes a debt that appears to be unsecured may
actually be linked to some property if the consumer has more than one
loan with the same bank through a concept called
"cross-collateralization." For example you may have a home mortgage with
Wells Fargo Bank, this is clearly a secured debt with your home as the
collateral. When Wells Fargo Bank later sends you a credit card
application and you take them up on their offer, you may be in a
cross-collateralization situation because the new credit card may be
tied to the mortgage you already have with the bank.
Secured debts are linked to specific items of
property. The property guarantees payment of the debts because if the
debt is not paid, the creditor can take the property or force the sale
of the property to pay off the debt. Most secured debt you incur
voluntarily such as a mortgage or car loan. Others are imposed on you by
creditors such as judgment liens or tax liens.
Secured Debt
and Bankruptcy
- The effect of filing bankruptcy on secured debt is fairly technical.
Bankruptcy can eliminate any personal liability stemming from the
secured debt. That is to say, if you choose to give back the property,
the deficiency left under the original contract becomes unsecured debt
and you may discharge that amount on the same basis as other unsecured
debts.
In bankruptcy, the consumer has many options for
dealing with secured debt. Those options include:
-
Surrender the property;
-
Attempt to avoid the lien;
-
Redeem the property at fair market value;
-
Reaffirm the debt by waiving your discharge as to that debt;
-
Retain the property and continue making payment as if bankruptcy never
happened;
-
Put the lien into a chapter 13 plan.
There are advantages and
disadvantages for each one of these options, no single option is best or
worst. It is always best to discuss your options with an attorney before
making a decision on secured debt.
If you need help,
contact us today.
There is no charge for your initial phone call.
Not all
debt can be discharged in either chapter 7 or chapter 13. Some debts
survive the process and are valid and collectable after bankruptcy. The
intricacies of discharge-ability are beyond the scope of this study,
however, some generalizations can be made to give you an idea of what to
expect. Debts that usually are not dischargeable include student loans,
local, state and federal taxes, child support, alimony, court fees and
fines, debts resulting from drunk driving, and certain cooperative
living fees.
Debts not
listed on your bankruptcy petition are also not discharged, creditors
must receive notice of the bankruptcy to be bound by it. Keep in mind
the circumstances of your individual case will dictate how the law
applies to you.
If you need
help prioritizing your debt,
contact National
Loan Auditors, and we will assist you in finding the right Debt
Elimination attorney today so you can start rebuilding your credit!
The idea of “Debt Elimination”
has gained widespread popularity lately with promises of the total
disappearance of credit card debt. Obviously, this sounds too good to be
true…you send some letters out to creditors and they just go away?
Well, it’s not going to happen (nice try though). The
credit card companies may stop collection actions temporarily after
receiving a “cease communication” letter from a consumer, but at some
point they will sue. No Debt Elimination company will be able to
represent you in court when that happens, they throw you out there to
make ridiculous arguments about money not really existing on your own.
Eventually creditors will sue and get judgments, which is much worse
than dealing with the problem straightforwardly.
If you need legal advice
on Debt Elimination,
contact National
Loan Auditors, and we will assist you in finding the right
attorney today so you can start the
process of eliminating your debt.
The
good news…there are actions a consumer can take to strongly improve
their position if litigation does occur. National loan Auditors will
take action on your behalf, and assign you to a State specific Attorney
that will represent you in any subsequent credit card lawsuit. This area
of law has become somewhat specialized and our Attorneys have the
experience to give you the best chance of winning against the credit
card companies. It is not appropriate to discuss specific strategies
publicly, but if you would like a free Debt Elimination consultation
with one of our Attorney’s, please
call the office.
If you’ve already been sued, we would also be happy to
discuss defending you in any
lawsuit involving creditors…especially credit card companies.
Keep in mind, litigation is messy and expensive.
Bankruptcy is often a much cleaner and less expensive option, but a Debt
Elimination plan is now available through our offices for Consumers in California and other specific states.
CREDITOR HARASSMENT LAW AND UNETHICAL DEBT COLLECTION
PRACTICES.
The Federal
Fair Debt Collection Practices Act requires that debt collectors treat
you fairly and prohibits certain methods of debt collection. The law is
designed to protect consumers from the use of abusive, deceptive and
unfair debt collection practices.
A collector may contact you in
person, by mail, telephone, telegram, or fax. However, a debt collector
may not contact you at inconvenient times or places, such as before 8
a.m. or after 9 p.m., unless you agree. A debt collector also may not
contact you at work if the collector knows that your employer
disapproves of such contacts.
You can stop a debt collector from contacting you by
writing a letter to the collector telling them to stop. Once the
collector receives your letter, they usually may not contact you again.
Although such a letter, sent certified mail, will stop debt collection
harassment, it does not prohibit the collection agency or original
creditor from suing. However, if you have been sued by a debt
collection, National Loan Auditors and its Attorney’s can defend you.
If
you believe that you could benefit from the creditor harassment law,
contact National
Loan Auditors, and we will assist you in finding the right
attorney today
that can advise you of
your rights!
If you have an attorney, the debt
collector must contact the attorney, rather than you. If you do not have
an attorney, a collector may contact other people, but only to find out
where you live, what your phone number is, and where you work.
Collectors usually are prohibited from contacting such third parties
more than once. In most cases, the collector may not tell anyone other
than you and your attorney that you owe money.
Within five days after you are first contacted, the
collector must send you a written notice telling you the amount of money
you owe; the name of the creditor to whom you owe the money; and what
action to take if you believe you do not owe the money.
Some Debt collection
practices that are prohibited:
Harassment:
Debt collectors may not harass, oppress, or abuse you or any third
parties they contact.
-
Use
threats of violence or harm;
-
Publish a
list of consumers who refuse to pay their debts (except to a credit
bureau);
-
Use
obscene or profane language; or repeatedly use the telephone to annoy
someone.
False Statements:
Debt collectors may not use any false or misleading statements when
collecting a debt. For example, debt collectors may not:
-
Give
false credit information about you to anyone, including a credit bureau;
-
Send you
anything that looks like an official document from a court or government
agency when it is not;
-
Use a
false name.
Unfair Practices:
Debt collectors may not engage in unfair practices when they try to
collect a debt. For example, collectors may not:
-
Collect
any amount greater than your debt, unless your state law permits such a
charge;
-
Deposit
a post-dated check prematurely;
-
Use
deception to make you accept collect calls or pay for telegrams
You have the right to sue a
collector in a state or federal court within one year (in most cases)
from the date the law was violated.
If
you are being harassed by your creditors, contact
National Loan Auditors, and we will assist you in finding the right
attorney today
that understands the
Creditor
Harassment Law and that can
advise you of
your rights!
National Loan Auditors and its Attorney’s will be
happy to discuss the options of suing creditors for debt collection
abuses under the Fair Debt Collection Practices Act or the Truth in
Lending Act (if applicable). We also provide clients with sample letters
to send out to creditors.
Hiring a Bankruptcy
Attorney can STOP Creditor Harassment
Collection
Agencies-
As most people already know, collection agencies can be very aggressive
and will resort to just about anything to get money from you. This
includes calling continuously, writing nasty letters, making threats,
harassment, and a variety of other scare tactics. Living with the dark
cloud of debt hanging over you can be overwhelming, but please know
relief is available right now. You can un-burden yourself and live free
again by contacting our office right away. In the meantime, simply tell
creditors you are in the process of retaining a bankruptcy attorney and
ask them to call back for that information in one week.
Are you a victim of creditor harassment?
If so, contact
us for help.
Income & Expenses
Your Budget-The
formula to determine your budget in bankruptcy is simply your net
household income minus your necessary expenses. Most consumers are very
close to even at the end of the month, that is their expenses balance
out their income and the amount left over is close to $0 or even a
negative number. In this case, chapter 7 is a perfectly acceptable
option. For the consumer with money left over at the end of the month,
chapter 13 is necessary.
Although the process of chapter 13 is longer,
and there is usually at least a nominal repayment of creditors, the goal
is the same. The discharge Consumers should be aware that the court has
certain guidelines for expenses that have been accepted as "reasonable,"
any amount over the reasonable amount may be viewed with skepticism by
the bankruptcy trustee and backup documentation may be required.
Disposable
Income-The
concept of disposable income is one most consumers are familiar with,
it's the money left after necessary expenses are paid including home
mortgage or rent, utilities, transportation expenses, insurance, food,
laundry and clothing expenses, child care, and anything else you just
wouldn't be able to get by without. The money left after those necessary
expenses are paid is you disposable income.
Many consumers have little
or no disposable income, but those who do have the ability to fund a
chapter 13 plan can take advantage of all the bankruptcy laws have to
offer, such as the re-valuation of secured assets, or the
"super-discharge."
If you need
help with filing bankruptcy, please contact us.
Although bankruptcy can stay on your credit record for seven to ten
years, in about two years you can probably rebuild your credit to a
point that will get you approved for just about any loan, even a home
mortgage. Most creditors look for steady employment and a history, after
bankruptcy, of making and paying for purchases on credit. Many creditors
disregard bankruptcy entirely after four or five years. In the long run,
bankruptcy may actually improve your ability to obtain future credit.
One of the most important items on your credit report is your
debt-to-income ratio and, after bankruptcy that number usually improves
substantially because your debts are largely eliminated. Also, without
the burden of debts you'll be able to save for a down payment on
property which always improves your standing with lenders. You also may
not realize you will be eligible for a Federally secured FHA Loan just
two years after bankruptcy.
Create a Budget
The first step to rebuilding your credit is to stay within a budget.
Controlling spending and saving money are essential after bankruptcy.
Think about changes you can make to your spending habits to save even
just a few dollars a week. Setting and achieving small goals can be very
inspiring and lead you to much greater saving than you thought possible.
Most people can usually cut at least 5% from their spending by simply
avoiding impulse buying, paying cash for things, and preparing more
meals at home.
Review Your
Credit Report
Often credit reporting agencies will inadvertently put negative entries
on your credit report that don't belong there. With so many files to
manage there are bound to be mistakes. It's a good idea to periodically
review your credit report to ensure all entries are accurate. If there
are incorrect entries, you may challenge those items. The credit
reporting agency will then correct your file, if they can't verify the
item. To contact the credit reporting agencies you can use the following
links: www.equifax.com; www.experian.com; www.transunion.com.
Get a Loan or
Secured Credit Card
Banks provide an excellent opportunity to rebuild credit by offering
secured loans or secured credit cards. Secured loans are linked to some
piece of property such as your car or a piece of machinery you may own.
If you don't have any security to offer, it is usually possible to get a
bank loan with a co-signer. For maximum benefit, keep the loan active
for at least 6 months, even if you can pay it back sooner. This will
give the bank a chance to report the loan to all three credit reporting
agencies. Some things to consider when shopping for a loan are interest
rate, and prepayment penalties. Naturally you want the lowest interest
possible with no prepayment penalty. Secured credit cards offer similar
benefits to bank loans and give you a chance to rebuild credit.
Start
rebuilding your credit for the future.
The first step is a Forensic Loan Audit.
Order your Forensic Loan Audit Now!
The idea of “Debt Elimination”
has gained widespread popularity lately with promises of the total
disappearance of credit card debt. Obviously, this sounds too good to be
true…you send some letters out to creditors and they just go away?
Well, it’s not going to happen (nice try though). The
credit card companies may stop collection actions temporarily after
receiving a “cease communication” letter from a consumer, but at some
point they will sue.
No Debt Elimination company will be able to
represent you in court when that happens, they throw you out there to
make ridiculous arguments about money not really existing on your own.
Eventually creditors will sue and get judgments, which is much worse
than dealing with the problem straightforwardly.
The good news…there are actions a consumer can take to
strongly improve their position if litigation does occur. National Loan
Auditors will take action on your behalf and assign you to one of our
State specific Attorney’s that will represent you in any subsequent
credit card lawsuit.
This area of law has become somewhat specialized and
we have the experience to give you the best chance of winning against
the credit card companies. It is not appropriate to discuss specific
strategies publicly, but if you would like a free Debt Elimination
consultation with an attorney please call the office. If you’ve already
been sued, we would also be happy to discuss defending you in any
lawsuit involving creditors…especially credit card companies.
Keep in mind, litigation is messy and expensive.
Bankruptcy is often a much cleaner and less expensive option, but a Debt
Elimination plan is now available through National Loan Auditors for
Consumers in California and other specific states.
National Loan Auditors, Saving Dreams
One Home at a Time!
Order
Your Forensic Loan Audit Now!
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