During an initial consultation, I am often asked what I think about debt consolidation companies and the services they provide. The short answer is that I think those services are generally a bad strategy. They damage someone’s credit similar to a bankruptcy filing, but the client doesn’t get the advantages provided by the bankruptcy court:…
One of the most effective ways a creditor can get paid is through wage garnishment. Generally, a creditor gets a court order which directs an employer to withhold a certain amount of their employee’s pay. The garnishment order is usually a very unpleasant surprise which arrives before payday. If a wage garnishment takes more from…
A Chapter 7 bankruptcy proceeding usually takes around 4 months. It takes time to prepare your case after you have returned all the necessary documentation – usually ten to fourteen days. After we have prepared your case and filed it, there is a meeting of the creditors (which generally only takes less than 10 minutes)…
Most people I meet with for initial consultations have questions about how a bankruptcy filing will affect their credit. My initial reaction is to check what damage has already been done to their credit score by the bad debts which are still on their books. Bankruptcy can stay on your credit report as a negative…
The Bankruptcy Code allows a debtor to “avoid” a judicial lien to the extent it impairs a debtor’s exemption in their property. For example, suppose you own a house in Buncombe County worth $150,000, and have a mortgage with a principal balance of $115,000. That means you have $35,000 in equity. If a credit card…
According to Mark Vitner, a senior economist at Wells Fargo: “Housing is going to remain dead in the water through the middle of [2011] … As foreclosures come back on the market, that will put downward pressure on prices.” There are several reasons housing in 2011 is predicted to be either flat or down. First,…
Yes, a bankruptcy filing can be made by one spouse without the other. Doing so means the non-filing spouse’s assets do not get examined by the trustee or court. It also means the non-filing spouse does not get the full protection of the automatic stay or the bankruptcy discharge. A key question in determining whether…
Here is a short video describing some healthy financial habits that improve not only the amount of money in your wallet, but also the quality of your life. I can help with #5!
It’s not always easy to rearrange your schedule, find babysitters, and search for a lawyer’s office in the midst of a busy day. For the month of January, I am offering free telephone consultations for clients who have resolved to get back on the right track financially, but have trouble finding the time or desire…
Banks and mortgage companies have not cooperated very often in out-of-court mortgage modifications. However, a Chapter 13 bankruptcy filing can give a homeowner a powerful tool in reducing their house payments. The best part is that the terms of the reduction are delivered to the mortgage lender, and a homeowner does not need permission or…