What to Do if You Can’t Make Your Car Payments During the Coronavirus Pandemic

coronavirus pandemic

It’s infiltrated nearly every part of the country, and when it arrives, the Coronavirus pandemic brings with it more than physical symptoms. Pummeling the US economy is a side effect of COVID-19 that biologists and infectious disease experts failed to mention, but massive nationwide business shutdowns have led to extensive job loss. Those who were unprepared for this unforeseen event quickly found themselves unable to make even their regular monthly living expense payments.

Although a $2T stimulus package has been signed into law, many Americans have already been out of work for weeks, and won’t likely see any payments from this legislation for several additional weeks. In that amount of time, any number of mortgage, rent, and car payments will go unpaid. This may, unfortunately, lead to some people losing their vehicles.

If your car has been repossessed, you might be confused about where to turn. But even after your car is hooked to the tow truck, you have options. There are laws in place to protect you from having to file bankruptcy and some things you can do to recover your vehicle. Here are some answers to common questions about car repossession.

1. Why was my car taken?

Late payments aren’t the only reason your car may be taken. It is very possible for cars to get repossessed by accident. If you were not expecting your car to get repossessed, it is worth it to call your lender to find out where your vehicle is and how you can get it back. If your car was taken in error, congratulations! You should be able to get it back relatively easily.

2. Can I get my car back?

On the other hand, if your car was repossessed for failure to pay, your lender legally has to notify you in the event of a repossession. In some cases, the lender will expect the borrower to pay back the car loan in full, plus the cost of repossession and storage, to get the vehicle back. Alternatively, the lender can require the borrower to pay any past due payments to return the vehicle and reinstate the loan. If you cannot meet the terms required to return the car, the lender will (typically) begin the process of selling the car to make up the balance of the loan.

3. What are my rights?

The borrower is entitled to receive notices from the lender. The first indicates the lender’s intent to sell the property and provides information for the borrower to try to get the car back or pick up any personal belongings left in the car. The second notice comes after the car has been sold by the lender. The borrower must receive a notice confirming the sale, how much the car sold for, repossession and storage fees, and the remaining balance—if any—on the loan.

Keep in mind that the repossession agent cannot use physical force, enter a closed garage, or damage any personal property in your car in order to repossess your car. The police are also barred from aiding in the repossession of a vehicle. They can be present to keep the peace but they are not allowed to intervene in any way.

4. Do I still owe money if the lender sells my vehicle?

If the car in question sells for less than what you owe on the loan, you will owe a deficiency balance. It is your responsibility to pay this balance. If you cannot pay the balance, you could face legal action and wind up on a debt collector’s list.

5. How will repossession impact my credit score?

Normally, repossession will remain on your credit report for 7 ½ years. You should expect the repossession to impact your credit score negatively. It could even increase interest rates or decrease your credit allowance on existing accounts.

Veitengruber Law can help, especially if you are struggling because of the current quarantine situation. Our New Jersey credit repair legal team is working throughout the entire Coronavirus pandemic. We are all working from home, but otherwise it is business as usual. You can reach us via any phone number on our website. We will talk with you to determine your best path going forward. You have access to all of the experts on the Veitengruber Law team during this challenging time! Reach out via phone, email, or message us on social media. We are answering messages on every platform.

 

 

 

 

 

 

 

 

5 Credit Repair Books YOU NEED TO READ in 2020!

credit repair

Veitengruber Law has been finding NJ credit repair solutions for years. We help our clients find customized strategies with our holistic approach to debt relief. We know that knowledge can empower you to return to financial health. The best way to gain knowledge is to hear what the experts have to say. Here we have rounded up some of the best credit repair books you can read. These books won’t give you an instant solution, but they can provide critical information that can help you start rebuilding your financial life.

 

1. How to Repair Your Credit; by Benjamin Harris and John Score (2019)

This book’s cover boasts that it will be able to help you overcome credit card debt forever. Harris and Score detail how to do this and more by using federal laws and existing loopholes to eliminate bad credit and increase your financial freedom. You will learn when to worry about your credit score and what to do about it when it is time to worry. These insider credit bureau secrets will give you an edge in navigating the sometimes confusing world of credit reports and debt.

 

2. An Attempt to Repair America’s Broken Credit System; by Andrew Coakley (2019)

Coakley is a professional credit repair expert and in this book he offers his insider insight into credit repair solutions. He demystifies the complexities of credit reports, scores, and agencies so you can be armed with the knowledge you need to get on top of your debts. He also offers valuable knowledge about managing your credit during marriage and divorce. His 10-day fix for raising your credit score promises quick results that can turn into long-term solutions.

 

3. High Credit Score Secrets: The Smart Raise and Repair Guide to Excellent Credit; by Thomas Herold (2019)

This book offers over fifty different ways you can instantly boost your credit rating and see real change in your credit score in sixty days or less. Herold walks you through how to use credit cards to build good credit and how to guard a good score for life. An expert of the financial world, Thomas Herold breaks down the exact mathematical algorithms used by the three major credit bureaus so you can learn exactly which financial choices will improve or damage your score.

 

4. Hidden Credit Repair Secrets: How I Bounced Back from Bankruptcy; by Mark Clayborne (2019)

Step-by-step instructions for doing your own 6 letter campaign to challenge any inaccurate, unverifiable, and questionable information on your credit report set this publication apart from the others on this list. With letter samples, actionable steps, and up-to-date info regarding current economic conditions, this book offers a comprehensive strategy to work with credit bureaus to repair your credit. The step-by-step nature of the book makes it easy for even the most financially inexperienced consumer to follow.

 

5. Money Management: The Ultimate Guide to Budgeting, Frugal Living, Getting out of Debt, Credit Repair, and Managing Your Personal Finances in a Stress-Free Way; by Scott Wright (2019)

Not only will Scott Wright help you repair your credit, he also aims to help you reshape how you think about money and managing your personal finances. Included are tips like simple ways to save every day, investing for beginners, budgeting for beginners, and how to boost your credit score by paying off debt. A big part of this book is focusing on how to stay stress-free throughout this process by focusing on the things you can do and accepting the time it often takes to restore true financial health.

It’s important to note that there are no overnight solutions to credit repair, but these books can definitely give you the knowledge you need to get moving in the right direction.

 

 

 

 

 

 

 

 

 

 

Can You Settle Retail Credit Card Debt?

Retail credit cards can create some of the hardest debt to manage. Retail credit cards are often easy to acquire but in many cases come with astronomical interest rates. Because of this, getting behind on retail card payments can quickly lead to a deep hole of unmanageable debt. When your retail debt gets out of control, it can seem like your options are limited. Fortunately, it is possible to settle retail credit card debt.

Debt settlement is when a debtor negotiates an agreement with their creditor to pay off a smaller portion of their total debt. Normally, this only happens when the borrower has defaulted on the account. The creditor may be more likely to agree to a settlement if they feel they would not receive payment for any of the debt owed. However, if you know you are at risk of defaulting, you may be able to discuss settlement options with your creditor. A creditor knows that recouping some of the debt is better than none of the debt. Settlement can be resolved with a lump-sum payment or with a fixed number of payments.

Settling your retail credit card debt may be the right choice for you, but it is important to know the potential consequences of debt settlement. Your credit score will likely be significantly impacted by a settlement. While you are repaying the settled amount, the settlement itself will be seen as a negative mark on your credit report. Even if you close your credit card account, the settlement will impact your credit score for up to seven years. Because of this, it is important to consider all of your options before you opt for debt settlement.

You may also be hit with surprise taxes if the IRS gets involved with your settlement. If the settlement allows more than $600 to be forgiven, you will likely have to pay taxes on the amount forgiven. If this happens, it is possible for you to reduce your tax liability. If your liabilities exceed your assets, you could qualify as insolvent and therefore wouldn’t have to pay as much in taxes. Before you settle, you need to make sure you can afford the potential taxes of settling.

Of course, no one has the right to debt settlement. You have to be able to provide evidence to your creditors that you have a specific hardship or that your debt is unmanageable. Even if you do compile enough evidence to prove you are facing significant financial difficulty, your creditors still may not be willing to negotiate. If your creditors are demanding payment in full, you may be forced to look into other debt management solutions.

While you can certainly attempt to settle retail card debt on your own, it might be in your best interest to work with a reputable debt settlement firm like Veitengruber Law. As a respected New Jersey debt settlement law firm, we have relationships with creditors and know how to negotiate with them. Because retail credit cards are often facilitated by larger credit card or finance companies, an attorney will typically have better luck negotiating than you would on your own. A debt negotiation attorney knows all the ins and outs of the laws surrounding debt and how this will impact your specific situation. This is especially important if you have had legal action taken against you. Even if you’re facing a lawsuit over your retail debt, the right attorney can demystify the settlement process and help you get back on your feet financially.

Veitengruber Law is a full service debt negotiation legal team. We know how overwhelming credit card debt can be, but you don’t have to struggle alone. Our proven debt negotiation solutions can help you work towards eliminating your debts. We can help you decide if debt settlement is the right choice for you and help you explore all of your debt management options.

How a Credit Freeze Can Prevent Identity Theft

credit freeze

It seems like every time you turn on the news or log on to your Facebook account these days, there is chatter about yet another massive data breach. In today’s increasingly digitized world, our personal information has never been more at risk of becoming compromised. Identity theft is a very real threat to your valuable identifiable data, your credit score and your overall financial security. While it can seem like identity theft is out of your control, you actually do have the power to defend yourself. One of the best ways to do this is with a credit freeze.

What Is a Credit Freeze?

A credit freeze puts an immediate lock down on your credit information and prevents potential cyber thieves from stealing any of your identifying information in order to open an account (anywhere) and start racking up debt in your name. A freeze will disallow anyone who is not actually you from gaining access to your credit file. Since creditors like banks and credit card companies need to see your credit report before they will open a new line of credit for you, they will be unable to do so unless you specifically lift the credit freeze.

When you initiate a credit freeze, the only people who will have unlimited access to your credit report are you and any current creditors and debt collectors you may have. Employers and some government agencies will have limited access to your credit report.


IMPORTANT NOTE: A credit freeze does not impact your credit score and is totally free.


When Is a Credit Freeze Called For?

A lot of people freeze their credit after they have experienced an information breach or have otherwise had all or part of their personal data stolen. The challenge most commonly encountered when freezing your credit report after an incident is the race against time. Who will “get to” your credit report (and all of the personal information contained therein) first – you, or the criminal?

Because of the aforementioned “race against time,” preventative measures, like freezing your credit before an incident occurs, are much more likely to be effective. With a credit freeze, even if your Social Security number somehow becomes compromised, the rest of your data and accounts will be protected. It is also a great idea to freeze your child’s credit report now in order to protect their future.

How Do I Freeze My Credit?

While freezing your credit is free, it does require you to jump through a few hoops. You will need to contact all three major credit bureaus and freeze your account individually. While this is time consuming, it will be worth it when your credit report and score remain safe if (when) another cyber attack materializes.

Each credit bureau will present a slightly different process to freeze your credit, but you will definitely need to provide them with: your Social Security number, birth date, last two addresses, a clear copy of a government-issued ID card, and a copy of a bill or bank statement with proof of your current address. You can request a freeze via phone, e-mail, or through the good old-fashioned Postal Service.

Once you apply for a credit freeze, the credit bureaus will give you a PIN with which to manage your credit freeze. You will need to keep this number in a safe place because you will also need it in order to unfreeze your information when the time comes to open a new line of credit. Your credit freeze will be activated one business day after you make the request via phone or online, with mail requests taking three business days.

What Happens When I Need to “Unfreeze” My Credit?

To unfreeze your credit, you will need to provide the same credentials with which you initiated the freeze, to the credit bureaus. Per federal law, the freeze should be lifted within an hour if you make the request via phone or email. Mail requests to unfreeze your credit will take three business days.

You can also request to have the freeze lifted temporarily, so a potential employer or landlord can do a quick check before your credit goes back into freeze mode.


PRO TIP: Ask which credit bureau they will be contacting and only unfreeze your data at that bureau.


Is There a Down Side to Freezing My Credit?

There are some cons to credit freezes. The process of requesting and managing a credit freeze with three different credit bureaus can be a lot to juggle. You will also have to go through the extra step of unfreezing your information anytime you apply for a new line of credit. Additionally, putting a credit freeze into effect now won’t protect any of your existing accounts from fraudulent activity.

Regardless of any negatives, in today’s increasingly digital world, protecting yourself from a cyber attack with a frozen credit report is a fantastic—and free—way to keep your personal information private.

Why You Shouldn’t Panic Every Time Your Credit Score Changes

With the internet almost constantly at the tip of your fingers, keeping tracking of your credit score has never been easier. Banks, credit card issuers, and free online credit monitoring companies all offer their services to help you stay virtually right on top of your credit score. But if you find yourself panicking every time you get an email from Credit Karma, it might be time to reevaluate your relationship to credit monitoring. Small month-to-month changes in your credit score don’t really matter*, and here’s why.

The most important thing to understand is that you don’t have just one credit score—you actually have many, and they are all calculated using different formulas. The most well-known credit score is your FICO score, which is calculated and monitored by three different bureaus: Equifax, Experian, and TransUnion. All three institutions have different levels of access to your information at different times and are constantly updating your files with every piece of information they receive.

What’s more, each credit rating category covers a wide range of scores. “Good” credit falls in the 670 to 739 range. Unless you are teetering on the edge between categories, a couple of points difference isn’t going to impact your credit worthiness too greatly. There are a myriad of reasons why your score will go up or down in any given month, and none of them truly reflect your overall credit health. Delayed credit bureau reporting, hard inquiries, balance increases, or opening a new account can all cause temporary, insignificant shifts in your credit score.

Fixating on small credit fluctuations is stressful and unnecessary. As long as you are not currently in the process of applying for a new loan or a new line of credit, a less than stellar score will have little impact on your every day life. The good news is that even if your credit score has recently taken a small dip, most lenders will look at the big picture, taking your credit history into consideration, not just your current three-digit score. It’s the big swings that you need to watch out for.

A major change in your credit score can alert you to unauthorized activity on your accounts or tip you off to the long-term impact of carrying high balances and paying your bills late. It is important to pay attention to these changes to make sure they reflect your financial activity. If your monitoring service reports a change you don’t recognize or understand, look into it. Whether it is the result of fraudulent activity or just poor financial habits, it is important to investigate why your credit score is changing so dramatically.

If you are concerned about your credit score and it isn’t exactly where you want it to be, don’t panic. At Veitengruber Law, we can give you real facts about credit and debt. Our legal team can provide real life solutions to improving your credit and your overall financial health. With patience, time, and dedication, it is possible to repair your credit. Using credit monitoring services is a great first step in the right direction. Just remember not to take every small monthly fluctuation to heart and stay focused on your overall credit goals.

*If your score takes a significant plunge, drops into a lower category, or is on a consistently downward trend, reach out to us. If something is amiss, it IS better to address it sooner rather than later.

What the Equifax Breach Means for Consumers and How to Take Action

The Federal Trade Commission recently reached a settlement with Equifax over a data breach that has impacted around 147 million Americans. The popular credit monitoring agency admitted to a leak that included social security numbers, addresses, birth dates, driver’s license numbers, and credit card information. Nearly half of all adults in the United States have been affected and are therefore eligible to file a claim in the settlement to receive compensation from Equifax.

What does the Equifax breach mean for you?

The first thing you should do is check to see if your information has been impacted by this breach. On the official Equifax Data Breach Settlement website, you can enter your last name and the last six digits of your social security number to see if your data was part of the breach. Make sure you are using the official, government approved website before entering any personal information. If you determine that your data was indeed breached, you have a few things to consider. The settlement includes three options for compensation:

– A one-time payment of up to $125

– 10 years of free credit monitoring services

– A one-time payment of up to $20,000 if you can prove you spent time or money on identity theft services due to the data breach

In order to receive any of the above compensations, you must fill out the application on the website by January 22, 2020. You can also choose to opt out of the settlement. In order to officially opt out, you must formally exclude yourself by November 19 of this year.

It is important to consider how this breach could impact you before you decide on a settlement option. Despite the low payout amount, consumers should not take this data breach lightly. Once your private, identifying information has been leaked, it can spread indefinitely. Data hackers can sell and re-sell your information forever. If your information is actively being used, $125 is not even close to enough money to cover the cost it will take to repair and protect your finances. Equifax has allotted $425 million for financial compensation—meaning actual, per person payments will likely be much less than the $125 listed. Early applicants will have a better chance of getting the full amount.

Because of this, financial advisors are suggesting that consumers opt for the free credit monitoring or exclude themselves from the settlement all together. Credit monitoring and identity theft services could serve you much better than $125 in the unfortunate event that your information is being sold on the dark web. Opting out of the settlement would allow you to sue Equifax as an individual, giving you more legal power to recuperate your financial losses in the event of a significant identity theft situation. Additionally, if your information has been seriously compromised and you have experienced significant financial loss due to identity theft, it is important to speak with a NJ lawyer who has experience with identity theft.

The one thing you can and should do right away in response to the Equifax data breach is to start practicing better cyber hygiene. Hackers look for more than just social security numbers and credit card information. Oversharing other personal information can be just as costly online. To protect yourself from identity theft online, these three steps can help keep your information secure:

1. Social Media: Make sure all of your social media accounts (Facebook, Instagram, Twitter, LinkedIn, etc.) are private so the only people who can see your information are those you choose to connect with. Even if your account is private, carefully consider what you share. Hackers can use your hometown, your birthday, your employment history, and other pieces of information commonly shared on social media platforms to acquire your private data.

2. Data Check: Google your name and city and see what pops up. If your full name, address, e-mail, or other personal information appears, this should make you wary about sharing additional information online. The more free information a hacker has access to, the easier it is for them to assume your identity to gather critical data about you, such as your social security or credit card number(s.)

3. Passwords: Get into the habit of changing all of your online passwords regularly and never use the same password twice. If a hacker is able to breach one account, they will try the same password over and over again. This can be disastrous for those who use the same password repeatedly.

With the global transition to online platforms, the way we protect our personal information and financial data has to change. Unfortunately, events like the Equifax data breach are becoming more and more common. Learning how to protect yourself and your personal information from hackers could save you a lot of time, money, and emotional distress. Minimizing the amount of personal information available online can be your first defense against cyber hackers.

 

 

5 Credit Repair Hacks that Actually Work!

credit repair

People often don’t realize the value of good credit until they really need it. Typically, it’s when they attempt to buy a house or open a new line of credit that people realize their credit score isn’t quite up to par. When that happens, the gut reaction is to race to fix their credit quickly. The good news is that raising your credit score is possible, regardless of your financial situation. However, this is a process that often takes time. Rebuilding a poor credit score can take months or even years.

Use these hacks to repair your credit score:

1. Pay Down Your Balance(s)

One of the best ways to raise your credit score quickly is to pay off a significant amount of your debts. Don’t just throw money at credit cards blindly, but be strategic about how you pay off your debts. A good way to do this is to look at your credit utilization ratio. This is the amount of credit you have used against the amount of credit you have available.

Example: if you have a $2,000.00 balance on a card with a limit of $5,000.00, your utilization ratio is 40%. Most experts suggest keeping your credit utilization ratio under 30%. If you are trying to increase your credit score quickly, you will want to pay off the cards where your credit utilization ratio is above 30% first. One of the best ways to do this is to make two payments a month. If you can swing it financially, making one extra payment a month can quickly reduce your overall debt and your credit utilization ratio.

2. Raise Your Credit Limit

Since we know your credit score is partly based on your overall credit utilization ratio, a quick way to lower that ratio without reducing debt is to see if you can increase your credit limit. In using the example above, if you have a $2,000.00 balance on a card with a limit of $5,000.00 (40% utilization ratio) and your creditor increases that limit to $6,500.00, your new utilization ratio will be at a more desirable 30%.

There are some important caveats when using method. You know yourself best: if you have trouble with overspending, this might not be the best choice for you. Also, if you have missed payments or have seen a steady decrease in your credit score lately, this will likely not work for you. In these instances, your credit card issuer may see the request for more credit as a sign that you are having a financial crisis. If you are a good customer with on time payments and your score is steady, this could be a good strategy to instantly boost your credit score.

3. Become an Authorized User

When rebuilding your credit, it is difficult if not impossible to get approved for a new line of credit. One way to get around this issue is to enlist the help of a trusted friend or loved one. If this person has good credit, they can add you as an authorized user on their current credit card account. This authorized status will show up on your credit report and boost your score.

IMPORTANT: When tying your credit to another person, you MUST make sure they are responsible first. The ideal candidate is someone who makes timely payments and keeps their balance low. If you tie your credit to someone who makes late payments and carries a high balance, you could end up lowering your credit score.

4. Consolidate Your Debt

There are two different kinds of debt: revolving debt and installment debt. Credit card debt is revolving debt, where the balance changes with each new purchase and payment. The FICO formula that determines your credit score favors installment debt, like loans, because this kind of debt tends to be more stable. Thus, consolidating your credit card debt into a personal loan can really give your score a boost. Personal loans also tend to have a much lower interest rate than credit cards, so you will end up paying less money in the long run.

5. Mix Up Your Credit Portfolio

Having a wide array of different kinds of credit is a good way to boost your score.  If you find you only have credit card debt, taking out a personal loan or a car loan isn’t a bad idea. While your credit mix is only 10% of your total score, diversifying your credit can give your score that extra boost it needs to go from “fair” to GOOD. It should be noted that this is a long term approach to better credit and should not be used by those who need an instant boost for an impending big purchase or financial change.

These tips and tricks can give you the boost you need to finally achieve excellent credit. If you are struggling to manage your debts or get your credit score where it needs to be, the team at Veitengruber Law can help. We offer personalized credit repair options to fit your financial needs.

 

How will my Spouse’s Debt Affect me?

When you meet someone new, finding out their credit score is typically not your go-to first date conversation starter. In the whirlwind of new romance, money matters tend to remain ignored. It is often much later in the relationship—after a couple has already become financially entwined through marriage or the sharing household bills—that financial issues come to the surface. You may be surprised to find out your spouse has accrued a substantial debt that you had no idea about. When facing this startling new information, it may be difficult to know how to move forward with your partner. Here are some tips to dealing with a spouse who has debt.

1. Hold Off On Making Judgements

In situations like this, emotions can run high. You may feel lied to or betrayed by your partner for concealing their debt. Breathe through your initial reaction. When people feel attacked they tend to shut down or become defensive. Keeping an honest, open space for communication with your spouse will allow you to move forward to fix this problem together. This also goes for making judgements about their current financial choices. If you see your spouse making consistent efforts towards paying off a debt, don’t chide them for their purchase of a new pair of shoes. Paying off debt is a process that you cannot expect your spouse to complete overnight.

Keep in mind that debt accumulates for many reasons and a past debt does not necessarily mean your partner cannot be financially responsible now. Maybe they were overzealous with their first credit card or are struggling with student loan debt. Unemployment, divorce, and medical expenses can also add up quickly. Don’t judge too harshly until you have the full picture of your spouse’s debt.

2. Get the Details

The amount of debt your spouse has makes a difference, so it is important to know the exact number they are currently working to pay off. How your partner is paying off the debt matters, too.  Is the repayment situation short term (over a year or two) or long term (5-20 years)? If it is a long term repayment plan, you can expect this debt to impact your life together for years to come. This is also the time to check your spouse’s credit report with them. This will give you the full picture of any late payments, high balances, legal judgements, or bankruptcy filings they may have.

3. Know When You’re Liable

Many people assume that once you get married, you automatically take on your spouse’s past debt. This is not true. Your credit histories will remain separate for any debts or financial troubles that occurred before your marriage. New Jersey is a common law state, meaning that even after marriage you’re only responsible for debt accrued in your name.

This changes once you open joint accounts, apply for joint credit, cosign on loans, or include your spouse on an account as an authorized user. These actions will show up on your credit report and you will be responsible for the debt. If at any point your spouse cannot make payments, even if it is on debt they personally accrued (after the date of your marriage), you will be responsible for the full payment of the debt.

4. Decide How You’ll Make Purchases Going Forward

Your spouse’s debt, and its impact on their credit score, may make it difficult for you to make big purchases together for the duration of the repayment period. Depending on how much debt they have and how low their credit score is, you may be looking at taking on the full weight of big purchases for awhile. You may be hesitant to apply for joint credit, cosign, or add them as an authorized user on your accounts. Have an honest conversation about how you will make big purchases together going forward.

At Veitengruber Law, we know the stress of large debt can create a lasting impact on marriages and families. Our experienced legal team can help you sort through the debts and create a future path that looks bright. Our comprehensive approach to resolving debt problems can help relieve the stress on you and your spouse.

 

 

5 Mistakes to Avoid After NJ Bankruptcy

NJ bankruptcy

After your NJ bankruptcy, a common concern is how to re-establish your credit score. The real challenge is creating new financial habits so you don’t find yourself back in the same hole all over again. At Veitengruber Law, our holistic approach to financial health means our job doesn’t end after the bankruptcy is closed. We work with you to repair your credit and create healthier financial habits.

 

Top Mistakes to Avoid After a Bankruptcy Discharge:

 

1 – Ignoring your credit report

When rebuilding your credit subsequent to a bankruptcy discharge or reorganization, you will want to be very attentive to your credit report. Your creditors are supposed to report any discharged debts included in the bankruptcy to the credit bureaus. These reports should show a zero balance and include a note indicating the debt has been discharged. It is crucial to follow-up on this and ensure that all creditors are reporting to credit bureaus correctly. If discharged debt is being wrongly reported—as either a charge-off or an open account—late or missed payments can continue to show up on your credit. This can further damage your score and make it more difficult for you to get new credit.

2 – Applying for multiple new credit lines

It can be tempting after bankruptcy to rush out and apply for a gaggle of credit cards or loans in an attempt to quickly repair credit. However, it is important to give your credit score time to rebound before applying for new credit. The impact of a bankruptcy is strongest in the first year after filing, although it can stay on (and affect) your credit report for up to ten years. Instead of rushing into opening several credit lines at once, be patient and take the time to research your best options.

3 – Failing to read the fine print

When you do start applying for credit cards, it is important to remember that not all credit cards are created equally. Some credit cards will be more helpful to those rebuilding post-bankruptcy. A secured card, for instance, allows you to deposit cash as collateral up front to create a line of credit. That way, you are not able to charge more than your initial deposit. With any card you choose, it is important to read the fine print of your terms to make sure the card will work in your favor.

4 – Falling for credit repair scams

Many unethical “credit repair companies” make big promises about performing miracles to improve credit scores, but they rarely ever deliver the results promised. These companies rely on misinformation to scam those that don’t know much about how credit works. Some of their tactics may even be illegal. Keep in mind that if something seems too good to be true, it probably is.

5 – Making things too complicated

Ultimately, when it comes to rebuilding your credit after bankruptcy, you need to go back to the basics. What bad habits caused you to file for bankruptcy in the first place? An unflinching assessment of your spending habits will help you determine which factors led to the bankruptcy and determine where you need to make changes. Figure out what your credit-bingeing triggers are and work toward setting spending limits for yourself. Simple things like making on time payments, keeping debt to a minimum, and sticking to a healthy budget are excellent foundations of any financial strategy and will get you on the road to financial health quickly.

You’ve been through the hard-fought financial battle of bankruptcy and come out victorious on the other side. Now is the time to think positively about your financial future. Rebuilding your credit after bankruptcy takes time and patience, but you can use the knowledge and financial savvy you’ve learned along the way to move forward to a brighter future. Veitengruber Law is here to help. We are skilled in advising clients and creating easy-to-follow strategies to rebuild credit. Call for your free consultation today.

Getting Nowhere with Your Debts? You Need a Debt Resolution Plan!

Debt Resolution

If you find yourself burdened with unmanageable credit card debt and struggling to make minimum payments each month, Veitengruber Law’s debt resolution services may be the perfect option for you. Following a debt resolution plan can be an effective strategy for anyone who has experienced a financial hardship like divorce, job loss, a significant reduction in household income, or medical debt resulting from serious accident or illness. Our team is experienced in debt management solutions and creating effective debt resolution plans.

George Veitengruber is an attorney with a strong focus on finances. All of our team members understand the personal heartache people can experience from overwhelming debt. We work toward real and appropriate solutions that provide relief and peace of mind for our clients. We will sit down with you to review your income and expenses and evaluate your debt to get a blueprint of your finances. No two people have the same debt issues and there is no one-size-fits-all solution to debt issues. We provide individualized advice for each client. Bankruptcy is not the only option for people seeking debt relief, and we will never push you into bankruptcy if that is not your best option.

Debt resolution can be an excellent alternative to bankruptcy or debt settlement. After we sit down with you to get a clear understanding of your financial situation, we can create a comprehensive budget that will allow you to get a handle on your debt. We will also use that budget to negotiate with creditors on your behalf. We will work to settle on new payment terms with each individual creditor, negotiating to eliminate penalties, reduce interest rates, and secure lowered monthly payments. The goal of a debt resolution plan is to resolve your debts for less than what you owe on your outstanding balance and to create a payment plan you can more easily manage.

There are some major incentives to working with an attorney to create a debt resolution plan over other debt settlement services or trying to manage debt alone. While your overall score will still likely drop at least slightly, our debt resolution services have the potential to limit damage to your credit score. Because you can continue to pay creditors throughout the negotiation process, there is little opportunity for late payments to further decrease your credit score. Veitengruber Law can also negotiate with creditors in how they report the payment of the debt, working with creditors to ensure your credit score is impacted as minimally as possible.

Another major benefit to debt resolution is the support you get from a qualified, experienced attorney. Our legal team can use their knowledge of the financial world to negotiate on your behalf. Creditors are more likely to take an attorney seriously and an attorney can assure your creditors are working in your best interest. We know all the tricks of the trade and how to work the situation in your favor. When you work with us, you know you will receive the quality know-how and financial expertise you deserve. Our advanced knowledge and years of experience also means less time spent negotiating with creditors, ensuring that you will start paying off debt sooner rather than later.

Don’t wait to start working on a solution to your debt troubles. Call us today to arrange a free consultation with a debt negotiation lawyer. Our comprehensive approach to debt resolution will allow you to breathe easier again. We can work with you to create an individualized debt resolution plan that works for you, helping you tackle unmanageable debt and avoid further financial troubles.