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.

Advertisements

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.

Wallet Full of Plastic: Do You Need Credit Counseling?

credit counseling

Many people enjoy the flexibility of credit card spending, but the more credit cards you have, the easier it is to develop destructive spending habits. The convenience and ease of credit spending can be a slippery slope to overspending and unmanageable debt. If you find yourself with a wallet filled with plastic, it might be time to seek credit counseling to get expert advice on debt management and credit repair. At Veitengruber Law, our credit counseling team can work with you to improve your individual financial situation and help you gain control over your money and credit.

Credit counseling is a great way to receive expert financial advice and support to help manage your debt and organize your finances. It is important to make sure you are getting advice from true experts and not financial scammers. Our legal team provides debt management and credit repair services to get you back on the road to financial health. Many of our clients developed unhealthy spending habits over time, slowly building debt until suddenly finding themselves overwhelmed with payments. Out of control credit card debt can seem overwhelming, but you don’t have to face it alone.

At Veitengruber Law, we understand how the credit industry works. We strive to instill in our clients a holistic understanding of their finances and how the credit system works. Our team can give you the tools and insider advice to take control of your credit. In your individualized consultation, we will provide easy-to-follow strategies to rebuild your credit, even after major financial set-backs. Our attorneys can also help you establish a realistic and manageable budget by looking at your monthly bills, expenses, debts, and income and devising the best plan forward. We can give you the knowledge to negotiate better terms on your credit cards to make your payments more impactful.


You may be surprised by how much a few budget changes can massively improve your financial situation.


It is important to note that you don’t have to be in dire straits to seek credit counseling. Maybe you have a decent credit score, but making payments on time has recently become a struggle. Don’t wait to address your financial situation until debt collectors are knocking at your door. If your current budget isn’t comfortable or you find yourself struggling to make your payments, it might be time to reassess your financial situation. If you are feeling overwhelmed, be proactive about your debt and address your problems before they become emergencies. Credit counseling can help you avoid future financial woes like bankruptcy.

IMPORTANT FACT: Credit counseling and debt management are excellent alternatives to bankruptcy and can often even prevent it.

Even novice consumers can benefit from credit counseling. Seeking advice from experts when you first start living on your own is a great way to make sure you are starting on the right foot as you make plans for your financial future. We offer individualized counseling to help you understand how credit scores work, financially healthy ways to build credit, and how to make the most out of your credit right now. Establishing healthy spending habits and formulating a budget early on will set you on the path for a healthy financial future.

It’s our goal to help you become a stronger financial consumer. From helping clients out of extreme credit card debt via NJ bankruptcy to keeping homeowners in their homes via mortgage modification, and even simply offering advice to struggling novice consumers, we can get you back on track. We care about your financial future.

Seeking Legal Counsel When You’re Out of Money and Out of Time

nj bankruptcy attorney

 

You have reached that critical point; you can no longer keep up with your bills. You might have a mountain of credit card debt, a house going into foreclosure, a looming sheriff sale on your property, shut off notices for services, a garnishment or repossession on a vehicle, or all of the above! Perhaps you are considering bankruptcy. The point is that you need the help of a legal professional. You need it done well, you need it now, AND you need to find a way to pay for it.

 

How Can You Afford It? (How Can You Not??)

You’re going to have to spend money to save money.  HOWEVER, you’re going to save your peace of mind and hopefully some assets too.

 

  1. Take advantage of a free consultation. A qualified attorney can give you your options. Is bankruptcy right for you? Is your situation ripe for credit consolidation or negotiation? How far along are you in the foreclosure process? Is it possible to stop a pending sheriff sale? Be honest and you’ll receive realistic expectations for your individual circumstances.

 

  1. Use Your Tax Refund. Uncle Sam has been holding on to your money, but now it’s the perfect nugget of cash infusion to save you bigger money in the long run.

 

  1. Ask family and friends. It’s difficult to swallow your pride, but you never know what your support net is until you ask. If it’s a gift, then that’s great. If it’s a loan you can let your loved one know that he or she will be listed as a creditor if you file bankruptcy. For other situations; set up a plan of when and how much you can realistically repay. It’s much easier to keep your job if you have stable housing and a solid financial plan under your belt.

 

  1. Stop Paying Your Unsecured Debt. If, after your consultation, bankruptcy is in your future, stop making payments on credit cards or other unsecured debt. The total owed will be dealt with as part of the bankruptcy, so those monthly minimums can now finance your legal fund.

 

  1. Reduce your expenses and minimize outgoing expenses. Fancy coffee every morning, premium cable channels, gym membership, daily lunches “out” – all gone. It adds up fast!

 

  1. Try to earn some extra money aside from your primary occupation. Sell old electronics or find a temporary part time job. Go through your attic or basement and have a yard sale, or hit eBay. Lighten your load while filling your wallet.

 

  1. Request a payment plan. Your bankruptcy attorney may allow you to list them as a creditor in a Chapter 13 filing, thus allowing you to pay them over a period of months. Chapter 7 fees can be paid over time as well, although without the federal court supervising. (Keep in mind that you must be paid in full before your attorney will file the case.)

 

  1. Withdraw from your retirement account. Only do this as a last resort. Those funds are otherwise protected, but you could be facing a large tax consequence if you withdraw early. That being said, in some circumstances it may be the best option. Also, consider options where you essentially “borrow” the funds from yourself and replace them with a payroll reduction each pay period going forward.
    IMPORTANT NOTE: Always discuss this option with your credit repair attorney BEFORE taking any money from your retirement fund(s).

nj bankruptcy attorney

How to Find the Right Attorney

You want someone with a proven record of results who can and will act in a timely manner. You could call your local bar association or attorney referral number. You could get a referral from a friend. Or, you could count one problem solved and realize that you already know a top legal representative for all types of financial duress – Veitengruber Law.

 

Don’t represent yourself.

This isn’t small claims court, or a traffic ticket. This is your entire financial future. Your chance of successfully completing a Chapter 13 bankruptcy without legal counsel is less than 1%; the chances of completing a solo Chapter 7 is less than 50%. Besides, you might end up losing more money trying to navigate your financial issues alone than you would have spent on legal counsel in the first place.

 

You wouldn’t ask a podiatrist to work on your car, or the babysitter to fix your plumbing. You need the right person for the job – you need an expert! When you’re looking for a NJ lawyer with experience who you can trust, you need Veitengruber Law.

How Identity Theft Affects Your Credit Score

NJ credit repair

What (all-too common) crime can happen to you without your knowledge, making virtually everything in life more difficult? Two dreadful words: Identity Theft. Unlike some medical diseases, identity theft doesn’t discriminate; it can strike anyone at any time. The worst part about being a victim of identity theft is that it can have a seriously negative impact on your credit score and it can prove to be difficult to fix.

More people than you realize have been severely impacted by identity theft. When an impostor uses another person’s identity to make a purchase and fails to pay the bill, a storm cloud rolls in. The scammer has zero intent to ever pay the debts they accrue under your name; therefore, you’re left to clean up the aftermath. You may not even realize that your identity has been stolen until a credit agency contacts you. By this point, your credit has likely already taken a major hit.

Your credit score is your representation as a responsible individual regarding money matters. Unpaid bills can have a lasting, damaging impact on your credit report, which can then snowball to affect other areas of your life (obtaining housing, buying a car, getting a decent job). Because payment history makes up about 35% of your credit score, late or nonexistent payments have a momentous effect on your “credit worthiness.” In addition to unpaid bills, identity theft can leave other negative marks on your credit report. Here are five ways that identity theft packs a punch:

1.      New Accounts

Adding a new account to your credit report or getting a new loan shouldn’t affect your credit score as long as you aren’t adding a plethora of new accounts all at once and you’re making regular payments. However, when an impostor opens a new account in your name and fails to make any payments, your credit score will slowly begin to tank. Every month that passes without payment received will lower your credit score further.

2.      Inquiries

If an identity thief is applying for new credit with your personal information, the lender is going to check your credit report. These are known as credit checks, or “hard inquiries” – each of which show up on your credit report. Each inquiry will affect your credit score by dropping it a couple of points. Your score will drop because credit scoring models regard “hard inquiries” as a sign that the consumer is shopping for credit.

3.      Collections Accounts

After no action occurs for 6-12 months on an unpaid debt, the lender will turn it over to a collection agency. This causes a “second action” to be taken, and a collection account will appear on your credit report. Unfortunately, this will have an extremely harmful effect on your credit score. Often, medical identity theft leads to the appearance of a collection account. This occurs when an impostor uses your identity to obtain medical services or treatment, but has no intention of paying the bill(s).

4.      Greater credit utilization ratio

Another significant piece that counts toward your credit score is the amount of debt you carry. When the scammer “goes shopping” and adds charges to your account (unnoticed), your overall amount of debt rises. Even if the scammer opens a phone plan or house utility but doesn’t pay the bill, the provider will report it to the credit bureau. A negative ding will appear on your report, damaging your credit score. A continuously increasing amount of debt will continuously drop your credit score. The higher your credit utilization ratio, or the amount of your available credit that you use, the lower your credit score will fall.

5.      Higher Auto Insurance Rates

In every state except California and Massachusetts, auto insurers utilize your credit score to set rates. A low credit score can cause a 20 to 50% increase in auto insurance premiums. Even if you have a depressed credit score, an insurer can’t reject you, but they do have the ability to hike up your premiums without an explanation.

Nobody wants to find out that their identity was stolen, but it can and does happen. Being knowledgeable and prepared as to how it can affect you is crucial. If you’ve been the victim of an identity thief, Veitengruber Law can help you deal with the emotional and mental frustration as well as the financial damage that has been done. No matter how low your credit score has gotten – we will guide you through getting it back to a respectable number again.

6 Steps to Repairing Your Credit

nj credit repair

In today’s economy, it is imperative to maintain a decent credit score. There are many reasons why you simply must work to repair your credit if it is currently less than fair (below 560-580.) A higher credit score will allow you to obtain a higher credit line. Also, if you have an excellent credit score, you will receive offers for credit balances with lower interest. A better credit score will also empower you with more buying power, so you can purchase a house, car, or make other large purchases. There are a multitude of things you can do to improve a low credit score. Six of the most important steps are detailed below.

 

  1. Pay your bills on time. While this may seem like an obvious course of action, it is extremely beneficial to improving your credit score. Conversely, if you do not pay your bills on time, your credit score will take a significant hit. Some people falsely believe that making late payments will not affect their credit score as long as they aren’t MISSING payments. It’s important to realize that late payments will incrementally drop your score.

 

  1. Maintain an appropriate debt-to-credit ratio. This is a way for creditors and lenders to see that you are able to use your credit responsibly. Your debt-to-credit ratio is essentially how much money you owe creditors compared with your overall available credit. For example: If your overall debt (money you owe creditors) is $10,000, and your total available credit is $20,000, your debt-to-credit ratio is 50%. A low debt-to-credit ratio indicates that you are not overspending. It also shows that you are closer to being able to pay off your debt than if you owed a higher percentage of your available credit line.

 

  1. Pay more than the minimum balance due each month. This shows that your income is steady and you have more purchasing power. Plus, when you make more than the minimum payment each month, you will be able to pay more on the principle amount due as opposed to simply paying off interest.

 

  1. Avoid opening too many accounts in a short amount of time. The rationale for this step is that more inquiries indicates to creditors that you may be in serious financial trouble. Even if you aren’t approved for every account you apply for, there will be credit inquiries made each time you apply that will ding your credit report.

 

  1. Pay off your balance instead of transferring debt to other credit cards. Not only do most balance transfers typically involve a fee, but this can lead creditors to view you as a volatile debtor who simply shifts debt around rather than actually paying it down.

 

  1. Keep a keen eye on your credit report. If you discover any errors, you should immediately report the issues to the reporting agencies and have them rectified right away. This should be completed at least once per year. If you find errors on your credit report that the agency(ies) refuse to remove, take legal action in order to prevent false information from dragging your score down unnecessarily.

 

Following these steps to repairing your credit score are excellent ways to start planning for the future. Knowing that you have financial security will improve your overall health and well-being. While there are many other steps you can take to improve your credit score, this list is a basic overview of the most trusted ways to achieve your goals.

How to Raise Your Credit Score: Hire a Trusted NJ Attorney

NJ attorney

When hear the word ‘credit’, a number of images may pass through your mind. Maybe you think of a situation in which someone owes you money or perhaps you picture a bank. You may consider your education and the credit you received for each assignment or even a situation at work where you deserved credit for your hard work or a good deed. If you’re involved in the financial world, your mind might immediately jump to credit scores: good credit, bad credit, and everything in between.

No matter what you envision when the conversation turns to ‘credit,’ toss in a bit of everything mentioned above and you’re on your way to completing the puzzle of what’s known as a ‘credit score.’ A credit score is a three-digit number that is computed using an algorithm and is based on information gathered from your credit report. Its purpose is to predict risk. Ultimately, your credit score represents the likelihood that you will neglect your credit obligations in the next 24 months.

Though there are a multitude of credit-scoring models that are utilized, the most well-known is the FICO credit score. According to myFICO.com, 90 percent of all financial institutions throughout the United States use FICO credit scores when making a number of important decisions. The three-digit number ranges anywhere from 350 to 800, with the lower number representing a less-desirable credit score.

How do you avoid ending up with a low credit score? What factors play into the algorithm? There are five categories that influence a credit score. The percentages represent the weight of each factor in determining the score.

·        Payment history (35%): Paying your bills on time is crucial. By not paying your bills by the deadlines, you will cause your credit score to decrease. Also involved in this category are any delinquencies or public records.

·        Amounts owed (30%): The amount that you owe on each of your credit accounts heavily affects your credit score. Also, the amount of possible credit that you have on accounts is strongly considered.

·        Length of credit history (15%): The amount of time and number of accounts you have open will boost your credit score, as long as you’re paying the dues on time.

·        Types of credit used (10%): Having a variety of types of accounts will help you out. Two examples are revolving and installment.

·        New Credit (10%): How often you pursue opening new accounts and new credit, including inquiries (whether you’re approved or not), will have an impact on your score.

Now that you know what goes into a credit score, you realize how malleable it really is. If you don’t give the three-digit number a little bit of TLC, it can quickly bottom out on you. On the other hand, if you are careful with your finances, you shouldn’t have a real issue keeping your credit score in line.

We know that establishing or reestablishing good credit is key to a secure financial future and we want to help you move toward that goal. As you read before, many financial institutions use credit scores and reports to make decisions, manage risk, and increase profits. On the downside, they don’t have any interest in looking out for your personal credit score and overall financial health. That is where Veitengruber Law steps in. Our holistic approach to building credit is at the center of everything that we do. The guidance we provide doesn’t end with a negotiated debt solution or court case. Instead, our goal is to set you up to be a successful financial consumer with well-rounded money smarts.

When your credit score drops following a short sale, a bout with bankruptcy, settlement, or other issue(s), we will walk with you to educate and counsel you. A sturdy financial foundation will give you the power to develop and maintain financial health.

The only way that you will mature in your knowledge of money is to work with experienced professionals. Credit scores and financial health is nothing to mess around with. Your confidence will rest in how well the professional counsels you along this path. With years of experience working successfully within a multitude of situations, we know that we can help you no matter what kind of financial “mess” you may have landed in.

Attorney vs. Debt Settlement Services: Which One Protects Your Interests?

NJ credit repair attorney

If you’re one of the millions of Americans facing a large amount of personal debt, you may have been tempted by the numerous ads you’ve seen for debt settlement companies. Debt relief sounds like a miraculous shortcut to a fresh financial start, but is it too good to be true?

In a word? Yes.

Like the deadly Venus fly trap plant, debt relief companies and consolidation services put up a beautiful, welcoming front, but once you’ve given them your trust and access to your finances, they’ll slowly devour you. This article will show you the truth about debt settlement services and outline the reasons a personal attorney will protect YOUR long-term financial wellbeing at every opportunity rather than using your troubling financial circumstances to endanger you even further.

 

First, let’s take a look at the methods debt settlement services will use to lure you in and subsequently destroy you financially.

 

Emotionally Manipulating Advertising

Debt settlement services rely on their aggressive advertisements to attract individuals who have poor financial literacy and are in dire straits regarding their current personal debt. They know that people who are paying attention to their ads are desperate for help and feel like they have no one else to turn to.

Dishonest Sales Pitches

Once they entice you to make contact, they’ll bombard you with an emotional sales pitch that will purposefully attempt to break down any critical thinking you might be using to analyze whether or not their services are a good match for you. Just when you’re at your most vulnerable, they’ll present a sales contract that seems to promise that they will arrange for you to be able to pay off your debt quickly.

Usually, these debt settlement companies will require money upfront. Alternatively, you may be asked to open a new bank account that you will be required to funnel money into. This money is supposed to pay off your debts.

No one in the financial world trusts or respects debt settlement service companies.

These companies are viewed with distain because they are for-profit. While it’s true that everyone needs to make a living, debt settlement services usually aim to siphon as much money from you as they can without actually helping you resolve your debts. This reprehensible approach is known far and wide in the financial world, so unfortunately for their customers, most creditors refuse to work with these scam services.

Worse yet, debt settlement companies won’t tell you about this huge barrier to success until you have already signed their contract. Once you’ve signed up, they have what they need. You will be left with a plan that won’t help you at all. Your creditors won’t have a good working relationship (or any kind of working relationship) with your debt settlement company, so your chances of being able to successfully get out from under your debts is actually worse once you’ve signed up.

We aren’t blaming consumers for getting tangled up with this awful companies.

Debt relief scams like this are highly skilled at spinning half-truths that we fully understand why people get sucked in. They cherry-pick information about their results and research; they might present evidence that their program helps clients at the 3-month mark. What they DON’T say is that their clients will be drowning in interest for years afterward. This unethical practice further demonstrates that debt relief services exist just to take your hard-earned money out of your hand when you need it most.

Your interest rates and credit score will be destroyed.

The first thing these companies will do is tell you not to make your minimum payments. They will instruct you to ignore any overdue notices or letters you will certainly receive. They’ll tell you that it’s all part of the plan, and that they have everything well under control.

While it’s true that after a long, hard-ball fight with your creditors, they MAY give up and reduce or write off your debts, but only at a great cost to your financial reputation. Your creditors will inform the credit bureaus that your debt has been negotiated, which will damage your credit score. A poor credit rating will raise your interest rates when you apply for credit cards, a mortgage, or a car loan. In some career fields, having a damaged credit score can even prevent you from being hired at all!

Creditors will still come after you directly, and debt settlement services can’t stop them.

The debt settlement company version of debt reduction will drag on for such a long time that creditors might decide to pursue legal action against you. Even if you do everything your debt settlement company has directed you to do, your creditor can gain a court order to seize your home, your vehicle, valuable belongings, and even garnish your wages directly.

If this happens, a debt settlement company cannot defend you in court, or help you with any legal proceedings. They aren’t lawyers. They don’t provide access to legal counsel, and they are not on your side.

Hire a consumer debt relief attorney to represent you.

Debt settlement companies, credit counseling and debt consolidation businesses cannot represent you in court when you are sued by creditors, they can’t give you legal advice, and they can’t represent you in court when you have the opportunity to sue creditors and collectors for violating your rights — ONLY lawyers can do so.

Why Should I Avoid Debt Settlement Companies?

Non-attorney companies that offer debt settlement services have a poor reputation in the U.S., particularly with the very creditors with whom you need to negotiate and who may sue you. And the industry is, unfortunately, plagued by scams.

A debt settlement company may commit to contacting your creditors on your behalf, but fail to do so. They may even succeed in having the debt frozen, but actually fail to negotiate the debt to an amount you can afford and then just withdraw money to pay themselves.

Assuming the debt negotiation company does as promised, they will still face many obstacles that affect you. To begin with, a creditor, most of whom are represented by a large team of attorneys, may up their game when they discover you are working with a debt settlement company instead of a law firm. This means the creditor could accelerate their collections process and file a lawsuit against you more quickly.

What makes an attorney different?

An attorney will represent you in court if your debt negotiations escalate. Your attorney will be able to give you accurate information about your legal options, your rights, and the risks you face during litigation.

Your attorney’s entire focus will be protecting YOU. Your attorney only cares about your immediate and long-term financial well-being.

Furthermore, your attorney will guarantee total confidentiality. Every communication with your attorney, their firm, and any member of their staff is protected. Only attorneys are bound by this confidentiality ethos.

Veitengruber Law can help you resolve your debt. Come in and meet with us at zero cost to you. Let us analyze and assess your current financial situation. We’ll give you the truth about whether hiring an attorney is in your best interest. If we aren’t sure that you need us, or if we aren’t sure we can help you, we will tell you up-front.

If we think there’s a high likelihood that we CAN help, then we will begin to protect you immediately. We will do everything we can to prevent your creditors from dragging you into court. We will carefully and skillfully negotiate and document each settlement to stop creditors from suing you.

In the event that you are sued, we will be prepared to ferociously defend your interests in court. You will not be alone at any stage of negotiation, litigation, or settlement.

Give us a call today to set up an appointment. The stress of mounting debt can start to take over your life; before you lose any more sleep or waste another hour fretting, allow us to step in and take action on your behalf. We can turn the tide and start taking back your life one negotiation at a time.

Image: “Broke” by Christian Schnettelker – licensed under CC 2.0

What is a Business Credit Score and How Important is it?

Whether you know it or not, if your business has a business credit card, you also have a credit report. This may be completely new to you, or maybe you’re just trying to find a bit more out about what exactly a business credit score entails. Either way, you’re in the right place, so keep reading!

What is a business credit score?

It’s the key to your business’s financial success. If you’re familiar with a personal credit score, such as a FICO credit score, it’s similar to this. In most cases, it’s a number between 1 and 100 that represents your business’s creditworthiness. Your score tells institutions whether or not they should lend your business money and how much they should be lending. They can also discern how likely you are to repay them in a timely fashion. A higher number on your credit score represents a strong history of taking out loans and repaying them on time.

Why do I need a business credit score?

Most likely, if you’ve just started a business, you’re using your personal credit to get the ball rolling. Using your personal credit indefinitely may not be the best decision for your business. Here are a few examples as to why establishing a business credit score is beneficial:

  • Easier to obtain financing: If you are able to establish a business credit score, it will easier to obtain a loan or line of credit in the future.
  • Potentially lower insurance policy rates: Insurance rates will rise as your business flourishes, but with a superb business credit score, these rates may be lower.
  • Separation of business and personal finances: By creating a credit profile for your business, you’ve added a degree of separation between personal and business finances. This makes it easier to track expenses for the purpose of taxes. Also, you won’t have to worry about personal finances, expenses, and debts intermingling with business finances.
  • Increased borrowing power: Larger amounts of financing may be easier to get if you have a decent business credit profile.

Establishing and growing business credit can reap remarkable benefits and financial advantages for a company. With a notable credit profile, businesses have a better chance at leasing equipment, securing lines of credit, obtaining a company vehicle, and getting a business credit card or loan without compromising personal credit.

Finally, it’s important that you know exactly what affects your credit score.

  • Payment history: Likely the most obvious factor, it’s crucial that you make payments on time and for the correct amounts. A string of late or missed payments will result in a lower credit score.
  • Length of credit history: A well-established line of credit is going to create the best credit score. Even if you have a history of a few missed or late payments, this is better than a short or nonexistent credit history.
  • Company size: Though this may vary, some lenders prefer not to lend to businesses of a certain size.
  • Credit utilization ratio: If you max out on all lines of credit every month, this will send a signal to lenders. Essentially, you want to be aware of how much you owe on current credit lines in relation to their limits.
  • Risk Factors: Some businesses possess risks simply based on their industry. For example, a business located in a town with a low population density may be considered high risk in comparison to a business in a highly populated location.
  • Public Records: Filing for bankruptcy or a history of civil judgments or tax liens against a business have proven detrimental. Since these are public, anyone can view this information.

Like many financial matters, credit scores are constantly changing, some of which is in your control and some is not. By focusing on what you can control and knowing what you can’t, you will be a more effective business owner. A commitment to striving for a great credit score will provide opportunities for improved financing, increased cash flow, and better business breaks.

8 Little Known Credit Score and Credit Report Facts

Cash is quickly becoming a thing of the past, being replaced by plastic and virtual payment methods. Credit cards are now everyone’s new best friend. Along with a credit card comes a credit score and credit report, which leads to the first thing you may not have known.

 

1. Credit scores and credit reports are not the same thing.

Yes, they are two different things. Credit reports include information such as how frequently you apply for credit, data about your credit accounts, your payment history, a few public records, debt collection and a few other related points. Credit scores, on the other hand, are calculated based on the data found on your credit report.

 

2. Specific employers check credit scores.

Did you know that applying for a job in certain industries will most likely cause your credit score to be checked by your potential employer? These industries/jobs include the armed forces, Transportation Security Administrators (TSA), law enforcement, financial planners/accountants, mortgage loan originators, and, believe it or not, parking booth operators.

 

3. You could catch a criminal!

By keeping a close eye on your credit report, you can see if someone runs up a massive credit card bill or draws out credit in your name. If there is an unanticipated change, contact your bank or lender immediately. You may be able to stop a scammer from stealing someone else’s credit information.

 

4. Identity theft can affect your credit score.

Over 8 million people are victims of identify theft each year in the United States. Believe it or not, hundreds of millions of hours are spent each year trying to find the problem, halt the fraud, and wipe credit reports clean. This is yet another reason why it’s crucial to keep a close watch on any changes in your credit report.

 

5. Seven is the magic number.

After about 7 years, negative information will be eliminated from your credit report, with the exception of bankruptcy (find out how long your bankruptcy will show up on your credit report here.)

 

6. Maxing out is not as fun as it sounds.

Did you know that maxing out your credit card can lower your credit score anywhere between 10 to 45 points? Aim to keep your debt to income ratio between 28 – 33% (this means that your monthly debt and spending is no more than 33% of your total monthly income).

 

7. Closing out an account is actually a bad idea.

Are you aware that closing credit card accounts can damage your credit score? Even if you only use the card once or twice per year, keep the credit card active. Your credit score will be more positively influenced the longer you keep the account open. A longer credit history, which determines 15% of your credit score, makes you look more responsible, and will boost your score.

 

8. Five Factors

There are five factors that go into formulating your credit score, also known as your FICO score. Your payment history makes up about 35% of your score. This is why it’s so important to make all of your monthly payments on time. Responsible for 30% of your score is how much you owe, so don’t leave debt hanging on your card. Your credit history length is responsible for 15% of your credit number. Accounting for 10% of your total credit score is your last application for credit (how long ago it was, what type of credit and the amount). The final 10% is calculated based on the types of credit you use.

If you have more questions about your credit score and/or report, please check out our many other blog posts on the topic. Happy reading!