What you need to know before you decide to sell, refinance or file bankruptcy

The Old Homestead Copyright (c) 2018 by David L Nelson, All Rights Reserved

What you need to know before you decide to sell, refinance or file bankruptcy.

Have you ever found out your home had a lot of equity? If you’re like me and everyone else in the world, you thought that if you could just refinance and pay off the credit cards, that would fix everything. 

Maybe it would. It might help a ton in fact. But it would depend on how much equity was in your home. How much equity we’re talking about. Let’s say for example that Tarzan and Jane owe $30,000 in credit cards and own a home worth $450,000. They each make $40,000 per year. They have two children, bad credit and their monthly credit card payments add up to $1050 per month.

Upside Down or No Equity

If their house is upside or has no equity, they might just file a Chapter 7 Bankruptcy and be done with the credit card debt. As a married couple with a family of four and eighty thousand per year in income, they would qualify for a chapter 7 bankruptcy in California and wouldn’t lose the house to the Bankruptcy Trustee assigned to administer their bankruptcy case. Bankruptcy Trustees are only interested in equity that they can actually impound, in their case, there is little or no equity at all.

The only risk is that Tarzan and Jane are paying for a house with a loan of over, or equal to $450,000. That’s a big loan with a big payment. They should probably fix up their place as much as possible, do it fast, and sell it to buy a house they can afford. Their payment on $450,000 is probably $2700/mo depending on the Homeowner’s Association Dues and Escrow Impounds and whether they have had the loan modified or not. So, they could file bankruptcy, get out of the credit card debt and if they can budget really well, they might stay in the house or sell it or even short sell it and find a rent that they can better afford.

Small Amount of Equity in the Home

See above but now the short sale is off the table so that at least when they sold, if they did, then they wouldn’t have a bankruptcy plus a short sale on their credit and that’s good for everyone. It also means they have a lower balance on their mortgage and that means maybe they should stay, at least they’re on the positive side and their payment is likely lower than in the first example supra.

Significant Equity in the Home

Of course this is where I wanted to get to in the first place. Now there are some real decisions to be made and not all of them are rosy. Let’s assume there’s $140,000 in equity, so that on the $450,000 house they only owe a mortgage with a balance of $310,000.

At least, at $310,000 in mortgage debt, Tarzan and Jane probably have a mortgage they can afford of something in the neighborhood of $2000 per month depending on impounds and etc. For a family of four, that’s comparable to what rents would probably be if they moved. So they wouldn’t want to move because the equity and the affordable house payment.

So what are the options?

a) Just Keep Paying Your Credit Card Payments

The average monthly credit card payments are probably about $1050 per month or even more if they just continue paying them. It will take a long time to pay them all off if Tarzan and Jane are only paying the minimum monthly payments. In the end they will have paid off nearly $100,000 because of all the interest. So this is not a good plan. 

b) Sell Their Home and Buy Another

This is a terrible option for obvious reasons outlined above, there’s plenty of equity and an affordable payment. Selling in order to pay off credit cards is a terrible idea. Besides where would they go? They would have cash but bad credit and a decent income. That and a couple dollars will get you a cup of coffee but not another house.

c) Chapter 7 Bankruptcy

I like chapter 7 bankruptcy more than chapter 13 in most cases, but not this one. Tarzan and Jane are too young and healthy. Chapter 7 is the Straight Bankruptcy or also called a Liquidation Bankruptcy where you’re in and out again in about four (4) months, however, the Trustee’s job in a Chapter 7 is to collect assets from you, liquidate them and pay them to your creditors. Tarzan and Jane have $140,000 in equity, but in California they can protect only $100,000 in equity in their home at best. Have a look at Calif. Code Civ. Pro. 704.730.

Certainly, if one of them were permanently disabled, on social security, or had a letter from the VA so stating then they would be good to go. In that case they could protect up to $175,000 of home equity in a chapter 7 bankruptcy, in California. (See Link above). Even if no one has stated that they are totally  and permanently disabled or close to it, and if one of them cannot participate in gainful employment, then they should go to the doctor and get one or two of them to sign off on it. Or if either were over sixty-five (65) years old, then that works too, and they could protect up to $175,000 in home equity. 

There’s another option for people over fifty-five (55) and low income, (but that one hardly ever works). If Tarzan and Jane could protect more equity than they actually have, then they could file a chapter 7 bankruptcy and keep the house no problem and since $175,000 is greater than $140,000 in equity, they could file a Chapter 7. Unfortunately . . . 

Turns out that we’ve already decided that Tarzan and Jane have two munchkins still at home. Tarzan and Jane are probably young-ish and they are not disabled since both are working and making $40,000 each. So the disabled protection for home equity is not going to work for them and the low income over fifty-five (55) is not going to work either. So they can protect only $100,000 of the equity or $40,000 less than the equity that they have.

In a Chapter 7 Bankruptcy the Trustee would sell their home and give them a check for $100,000. But where can they move with only $100,000 and bad credit? I think we may have seen this movie before. But with a bankruptcy too?  That’s even worse.

Perhaps one might think that the Trustee couldn’t obtain enough money from the sale of the home to cover the costs of sale, and while it may be close to true, Chapter 7 Trustees have other things up their sleeves. Realtors will sometimes reduce their fees. Even more importantly, sometimes the mortgage lender will take a reduction in pay off as well. Because a bankruptcy trustee does not need to be able to collect very much in order to go through with taking a home and selling it, in this case he or she probably would. It gets even worse. During the time that Tarzan and Jane’s bankruptcy were to be pending, and before the home sale were complete, if the value of the house went up and the bankruptcy trustee could take advantage of it, then the bankruptcy trustee gets the additional appreciation, not Tarzan and Jane.

So if you don’t mind the Chapter 7 Trustee selling your house for you then maybe a Chapter 7 is for you. But I don’t recommend it, not in Tarzan and Jane’s case.

d) Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy gives a type of protection that a chapter 7 does not. Remember that in a Chapter 7 Bankruptcy the Trustee’s job is to take things away, sell them and pay creditors. In a Chapter 13 Bankruptcy, the Trustee takes monthly payments from Tarzan and Jane only. They would get to keep their home.

In this case, it would work like this, the home equity that Tarzan and Jane can protect is $100,000 but the total equity is $140,000 leaving $40,000 not protected. The $40,000 which is not protected is greater than the $30,000 that Tarzan and Jane owe in credit cards, therefore, Tarzan and Jane must pay 100% of that $30,000 in credit cards into the payment plan for up to five (5) years.

At least the payment plan would require little or no interest. It would require a Chapter 13 bankruptcy payment plan payment of about $625 per month in Southern California. This is almost certainly a much better cash flow than just paying the credit cards directly by about half or so. Remember that they were paying $1050 per month on credit card bills before?

It’s not a bad monthly payment really. If you need a Chapter 7 or a Chapter 13 Bankruptcy in Southern California including San Diego, LA, Orange and Riverside Counties, call me 951-200-3613. 

e) Debt Consolidation Plans

There are three main types of debt consolidations: The First is the Chapter 13 Bankruptcy discussed above. The second collects payments  from Tarzan and Jane and negotiates with the credit card companies. They form agreements with creditors to reduce payments by obtaining lower interest rates and on rare occasions also reductions in principal as well. The payment would be about what a Chapter 13 payment would be. 

The third type collects regular payments from Tarzan and Jane but lets their credit cards go unpaid for a while until those debts are sent to collection agencies and then the consolidator settles the debts with the collection agents for a one time payment for less than the full balance. This is also called Settling the Debts or Debt Settlement.

Often they work out great. Other times, not so much. Sometimes what happens is you place your five (5) or ten (10) accounts, including credit cards, small loans, medical bills etc that you owe on the table in front of him, and if he’s been doing debt consolidation work long enough, he must immediately know which ones will play ball with him and which won’t. However, what he won’t do, is tell you which ones won’t work with him. Think about it, if there were one or two that wouldn’t work with him and he told  you, you would call me instead. 

Next thing Tarzan and Jane know, one of their credit cards has sued them. If the attorney who sued them was unscrupulous, as collectors sometimes can be, then Tarzan and Jane might not even know that it has happened until they find out that their wages are being garnished. Wage Garnishments can take up to 25% of a normal paycheck. Or they might find out because their bank account has been emptied by the sheriff via bank levy.

f) Refinance or Second Mortgage or Home Equity Line of Credit

But how do Tarzan and Jane take a loan against their home when they have bad credit? Even if they have enough equity in the house to borrow enough to pay off the $30,000 in credit cards, who will lend to them? 

It’s not a question of WHO but WHEN will they lend to you? Credit Repair is what you need.

Did you know that you can repair your credit yourself? It’s easy too. You just need to know how. If you could raise your credit score enough, then you could refinance your mortgage, obtain a second mortgage or qualify for a home equity line of credit.

A second mortgage would give a much better cash flow than a chapter 13 bankruptcy would by at least half. The second mortgage payment might be only about $325 per month. So, from a payment of about $1050 per month, down to about $325 per month. That’s a huge improvement and all you have to do is follow the Guide and it’s real simple. 

So how do you repair your credit? Click Here for the Attorney’s Guide to Credit Repair.. It’s fast, easy and guaranteed by Attorney Robert Shapiro who wrote the Guide. If your credit is bad, you can make it good. If your credit is good, you can make it better. 

Chapter 7 and Your Second Mortgage

My Father’s House Copyright (c) 2018 by David L Nelson, All Rights Reserved

While it is true that you may be able to strip these off of your home in a Chapter 13, in a Chapter 7, you may still be able to effectively ignore it (for a while) and keep your home.  However, the 2nd Mortgage or Heloc would still have a lien on the property.  You would then have to settle the lien or deal with it in some manner later on.

Your 2nd Mortgage or Home Equity Line of Credit – Heloc

. . . has two things over you . . .
a) they have the promissory note that you signed promising to pay
b) they have a deed of trust or trust deed on the house which is a lien on the house also called a mortgage. 

If you have filed a Chapter 7 Bankruptcy, then the Chapter 7 discharges the Loan or Promissory Note, which means that the mortgage company or lending bank cannot collect money from you directly. They cannot sue you, garnish your wages, levy your bank account, or even ask you for money or anything like that.

If you still own the home, then you still have that 2nd Mortgage Lien called a Trust Deed or Mortgage on your property. Chapter 7 Bankruptcy does not remove that kind of lien from your house, not in the 9th Circuit Appeals Court’s jurisdiction. Therefore, if the value of the house is high enough, then your 2nd mortgage lender can foreclose that lien, but in order to do so, it must pay off the 1st mortgage and any unpaid property taxes first.

Some Things You Can Try Include, But Are Not Limited To: 

1.  Refinance Your Second Mortgage: Yes, it may be an actual option. And as unlikely as it may seem or feel, if you have home equity now (at this writing in 2018) then a refinance may work but only if you have good enough credit. But how do you manage that after having filed a Chapter 7 Bankruptcy? Believe it or not, most credit repair services use the same techniques outlined in this Guide. In fact many use the very same Guide. Follow this guide to repair your credit including how to write letters to settle debts such as mentioned below. Download the Following Link Now and Get Started Right Away with The Attorney’s Guide to Credit Repair. It’s Fast, Easy and Guaranteed.

2. If the Value of the house is higher than the balance on your 1st mortgage then you must deal with your 2nd mortgage now.  If it is lower than the balance on your first, then you don’t have to deal with them immediately, but you must deal with them eventually, because, remember, they have a lien on the house.

3.  If the value is relatively close to the balance on 1st mortgage then you will have to deal with the 2nd mortgage sooner rather than later because in not too much time, the value of the house will go up high enough for the 2nd mortgage company to be able to foreclose. If you cannot afford to settle it, you should consider trying a loan modification. 

4.  What most clients will do is make an offer to settle the 2nd mortgage lien in one payment, one time with no balance owing afterwards, and you must get that in writing from the bank before you mail your cashier’s check. You might have to take a massive 401k loan in order to be able to make such an offer, but if they take it, it would be worth it. 

5.  If you have previously filed a bankruptcy and then the 2nd mortgage lender cancels the debt and sends a 1099 for the “forgiven” balance next year, then you are able to deduct the amount because it was already previously “forgiven” or when you filed your chapter 7 bankruptcy and received your chapter 7 bankruptcy discharged. 

6.  Most clients will save as much as possible and then when they get a tax refund next year, they add that with the savings, and if possible, sell a car or some jewelry and then use that to make an offer to settle the lien. (Dear Reader, when I originally wrote this several years ago, most homes had much lower values and so it was so much easier to offer to settle such a second mortgage. However because home values have gone up considerably, it’s nearly impossible to do now.) 

7.  In any case, your Discharge Order from your Chapter 7 Bankruptcy prohibits  all kinds of collections.  Therefore, they cannot hound you, dunn you, or bother you, whether by phone, email or letters demanding payment of the loan or promissory note.  They have only one legal option, they can foreclose. It doesn’t mean that they won’t but knowing your rights, that they cannot, at least you can protect yourself.  REMEMBER however, that the 2nd Mortgage must pay off the 1st Mortgage in order to foreclose.

8.  If your home has significant value which it probably does, the loan modifications are an option to protect your home, and if necessary, selling your home as a method of preserving the home equity is also a great option. Not that those are the best options, but they are options. Additionally, Chapter 13 Bankruptcy may be a viable option as well.

THEREFORE, the probability of them foreclosing is lower and lower when the value of the house is lower than the balance on the 1st mortgage.  It’s simple math, they won’t pay off a $200K loan to get a $150K asset that they can then resell and only recoup $150K and they’d have to pay closing costs to sell it so they’d only net $120K. That would be a loss of $80K plus they would also lose all of the 2nd mortgage too which is probably another $50K or more on top of the $80K.

HOWEVER, when the 1st and 2nd are held by the same company and particularly if that company is a credit union, it may be possible that they’d foreclose anyway but if the payment on the 1st is getting paid, then it’s still not very likely.

Overall, when dealing with a 2nd mortgage, it’s risky, no matter what happens. A chapter 13 which would allow stripping off the 2nd mortgage, is risky too.  Even more so because your Chapter 13 Bankruptcy requires that you immediately go back to paying your regularly scheduled monthly mortgage payments on your 1st mortgage, and if the 1st was not yet modified on the date of filing the bankruptcy, then you’d be stuck with the unmodified mortgage payments. Also, most Chapter 13 Bankruptcies never get completed.  More than 70% don’t get a chapter 13 discharge because something happens that derails the payment plan such as a work stoppage or an illness, or even something unexpected such as a busted transmission. Stripping the 2nd mortgage off in a chapter 13 requires that you complete the three to five year payment plan, so it’s majorly risky because if you have a hypothetical plan payment of $350/mo and you pay it for 2 1/2 years and then if you cannot pay anymore and you don’t get your plan completed, guess what, you just tossed $350 x 30 months out the window.  That’s $10,500 that you’ll never get back, and that’s only if you get a payment that low to begin with.  Most are higher.

In Summary:

Offer to Settle Your 2nd Mortgage

So, in summary, making an offer to settle the balance on the 2nd after a Chapter 7 Bankruptcy, should aim to pay (I originally wrote 10% of the balance or less, but nowadays the percentage at this writing in 2018, must be much higher). However if the house is seriously upside down on the 1st mortgage already, you may be able to offer lower. But it does have to be paid in one payment once they accept and you must get them to accept it in advance in writing. You must not pay them unless you have it from them in writing that they will accept your settlement offer and that they will RELEASE the lien once they get the payment.

I’ll say it again just in case you didn’t hear me, they must agree to RELEASE the lien in writing once they get your payment. If they don’t agree to release the lien, don’t send the check.

Or Refinance Your Second Mortgage

Yes, it may be an actual option. And as unlikely as it may seem or feel, if you have home equity now (at this writing in 2018) then a refinance may work but only if you have good enough credit. But how do you manage that after having filed a Chapter 7 Bankruptcy? Believe it or not, most credit repair services use the same techniques outlined in this Guide. In fact many use the very same Guide. Follow this guide to repair your credit including how to write letters to settle debts such as mentioned above. Download the Following Link Now and Get Started Right Away with The Attorney’s Guide to Credit Repair. It’s Fast, Easy and Guaranteed.

So You Might Need to Buy a New Car?

Copyright (c) 2018 by David L Nelson, all rights reserved

What you need to know before buying a car on credit after a bankruptcy, or after bad credit?

They love to say, they will sell you a car with bad credit, of course they will, at 25%, I might sell you my own car.

After a bankruptcy one of the easiest things to do is to buy a new car, or at least a newer car. A new to you car. It sounds too good to be true but oddly enough, it’s not.

If you filed a chapter 7 bankruptcy, the more common type, then your new car creditor knows that you can’t file again for eight (8) more years from one file date to the next. So, they know that you can’t file again, and if you can’t file again, I’d sell you a car too. If you default on the new car loan (for the new car to you which is probably an older car) then we can sue you for another however many of those eight (8) years are left. Then I can garnish your wages, levy your bank account, and record a judgment lien on your house. Creditors love doing all of those things. Especially car creditors, car creditors love to be the first one to sue you. One attorney who represents car lenders told me that if “we’re the first one to sue, maybe the debtor puts up with one wage garnishment, ignores one judgment lien on the ol’ homestead. However, when the second judgment comes along, they call you. ” In fact I might as well mention, if you need a bankruptcy attorney in Southern California, give me a call, 951-200-3613

If you do have to buy a car, and sometimes you must, then your interest rates will be absolute murder. Don’t do it. If you can avoid it, avoid it. However, with a little effort and just a little time, maybe only a couple of months, you can repair your credit enough to buy a car with a decent-ish interest rate. 

If you do nothing, and you wait long enough, your credit will be rehabilitated on its own rather like a cut on  your finger will get better even if you just do nothing. Keep working in your garden or garage where it’s filthy without washing it, without a bandage, in the filth and dust and dirt and your finger will get infected and in spite of that in the long run, it eventually gets better anyway.

But if you clean it, put some Neosporin or a salve on it and bandage it, and keep it clean, then it gets better a lot faster. And what’s wrong with faster? Nothing of course.

But you just had a bankruptcy, what can you possibly do to repair your credit after a bankruptcy? Bankruptcy is the Credit-Reaper.

There are a few things.

Be sure of course, that whatever credit you still have, whatever debts you still have to pay after your bankruptcy, be sure that credit stays in good condition during the months and years after the bankruptcy is over. Don’t get into any new debt that you cannot handle, if you have reaffirmed any debts from the bankruptcy, make sure that you stay current on those and everything else including your utilities. Utilities won’t report your good payment history but they’ll definitely report your bad payment history if things go wrong.

Good credit is a combination of not too many bad things on your credit reports compared to the good things on your credit reports. Great credit is few or no bad things compared to lots of good things.

You can increase or improve your credit rating by removing bad things and adding good things to your credit reports. One of the easiest things to do to add good credit to your credit score is to buy a car, but you don’t want to do it until you’ve already improved your scores.

Check your credit after your bankruptcy is over. It’s almost a certainty that not all of the accounts included in your bankruptcy discharge are listed in your credit reports as “an account included in bankruptcy” or “bankruptcy” or “bankruptcy discharge”.

Go to AnnualCreditReport.com and check. If even one, just one of the dischargeable accounts that existed prior to your bankruptcy is not listed as included in your bankruptcy, then that account is dragging your score down. You can correct that with the appropriate letters to the creditor or to the credit reporting agencies directly. Prove that they have you listed wrong in your credit reports and they will have to fix it.

Where you do sometimes run into some fun, and by fun I mean it like Michael Jackson did in the 80s when he referred to good things as Bad: What if the account which is bringing down your score is also an account which for some reason was not listed in your bankruptcy in the first place, also called an unlisted or omitted account. Now what do you do?

Unlisted or Omitted Accounts are considered not discharged by the bankruptcy code unless two (2) things didn’t happen. See 11 USC 523 (a) (3). However, you can see from that code section that an omitted debt is nevertheless discharged if those two things didn’t happen. Here’s a hint, there is a case called In Re Beezley in which the Ninth (9th) Circuit Court held that the code section really does mean what it says that it means.

The first thing that had to NOT happen was, 1st) Did the Trustee on your case figure out that you may have assets which means that he would set a deadline called a claims bar date for creditors to turn in a proof of claim? When a trustee finds that you have assets, it’s called an asset case, and if no assets, then it is a no-asset case. In a no-asset case, the Trustee files a report with the court called a No-Asset Report. In the bankruptcy court’s court docket it will probably be listed as a Chapter 7 Trustee’s Report of No Distribution. If the Trustee did impound assets and distribute to creditors and the one you now have found was never listed, then you still owe that creditor his money because under 11 USC 523 (a) (3) it was not included in your discharge.

The second thing that has to NOT happen is 2nd) Even in a no-asset case, did you commit Fraud, Embezzlement or Malicious Injury to Person or Property against that creditor. Then if you committed any of those but you left this debt out of the bankruptcy, then the creditor was never barred from filing a non-dischargeability action against you in the bankruptcy court like would normally happen at discharge time because they never knew that a bankruptcy had been filed. Phew long sentence. Basically, at the beginning of the bankruptcy a temporary restraining order prohibits any collection efforts or lawsuits against you, except for suits in the bankruptcy itself for fraud, embezzlement or malicious injury to person or property. At the end of the case, the discharge order is a permanent injunction prohibiting collections and lawsuits against you even in the bankruptcy court for those same types of actions. A discharge does allow secured creditors to collect cars and houses if you stop paying for them.

If the omitted creditor had been listed in the bankruptcy petition and received a notice of your bankruptcy, and nevertheless, didn’t file that lawsuit in the bankruptcy, then at the end of the case, they would have been included in the discharge. How’s that for irony. Most of them won’t bother once they see how low your income is, how few assets you actually have and they might think that suing you in the bankruptcy court to prove you are a fraudster is throwing good money after bad.  But if you left them out of the bankruptcy then, therefore, they can now sue you if they want to. But they would still have to sue you to prove that you did the fraud, embezzlement or malicious injury, that’s not going to be an automatic.

If you’ve just had a bankruptcy and afterwards, if you have no debts, start by going to your bank with a little money, say $300 to $500 or $1000 and ask for a secured credit card. It may take a while to save up, but go ahead and do it. Using it sparingly and then paying it down or off quickly will help your credit scores immensely.

If you can afford to, get two of them, from different banks. Two accounts is much better on your credit reports than only one. However, unless it’s an emergency, don’t buy something unless you have already saved up the money for it first. Here’s a hint: Most things you think are emergencies are not.

In other words: Don’t Buy Stuff You Cannot Afford.

Once you’ve purchased something with your new card, you can pay it off over two or three months that way, because you already have the money saved. Do this and it will improve your credit scores.

Meanwhile, a couple or a few months after the bankruptcy discharge, go to Annual Credit Report and download your credit reports to see what is on them. If there is anything that was included in the bankruptcy that is not showing as “an account included in bankruptcy,” or “bankruptcy” or something like that, then you can ask the credit reports and even the creditor to correct the situation.

If a creditor was left out of your bankruptcy but it pre-dates your bankruptcy, then you can ask them to fix it too by sending a letter explaining the in Re Beezley ruling and that it applies to that creditor.

For specific forms and language to put into those letters, to go The Attorney’s Guide to Credit Repair for easy, fast, guaranteed Credit Repair advice.

Once you’ve taken the opportunity to clean your credit first, then you can buy a newer car than you would have been able to, and with a more favorable interest rate than you would have been offered. That means that you can buy a better car, a safer car and more a more reliable car.

How I got a huge pile of old student loans off my Experian Report

Credit Repair
Copyright (c) 2018 by David L Nelson, All Rights Reserved. Has Your Institution of Higher Learning let You Down?

Want to repair your credit but keep hitting a brick wall?

Did you know that according to the Federal Fair Credit Reporting Act or FCRA,  15 U.S.C. § 1681, when you dispute something on your credit reports such as Experian, Equifax and Transunion, the Credit Reporting Agency you’ve written to must investigate your dispute. That makes sense and is perfectly easy to understand. No problem so far.

However, the code section actually requires that the credit reporting agency, (usually Experian, Equifax and Trans Union) “shall, free of charge, conduct a reasonable reinvestigation” which of course means that you’re in luck, which means that there is even less than no problem so far.

So what if you dispute something and the credit reporting agency investigates the information, and the party who furnished the information to Experian, Equifax or Trans Union reports back to the credit reporting agency that the information is correct? If you believe that it is not correct, then you may send in another dispute of the same information outlining why you believe it is incorrect, and the credit reporting agency must “reinvestigate.”

So, I was trying to buy a house, ages ago, but I had loads of student loans on my credit files listed, in some cases, as many months late because it was shortly after graduating and passing the bar and for a long time I didn’t yet have a job or career to speak of, and so I got into some financial trouble. We did eventually flip a couple of houses and pay off all of my student loans, so I wasn’t a complete loser, but my credit was still shot from it all. And this last house, I didn’t want to flip, I just wanted a good interest rate and couldn’t get it. In retrospect I should have taken the bad interest rate, closed quickly and flipped it anyway.

So, I checked my credit reports and realized that almost all of my old student loans had been listed inaccurately. They were listed as most of them over 120 days late. Hahaha! But I knew better, most of them were over 180 days late. So I sent in a dispute. And month after month, Sallie Mae kept reporting that they were right and I was wrong.

However, at long last, after about six (6) disputes and ten (10) months later, suddenly all of them disappeared all at once from my Experian credit file. I can only guess what happened, either they finally agreed with me, or maybe the person who worked for Sallie Mae verifying information for credit reporting agencies must have been on vacation or maternity leave or died or something.

Credit Repair works, and you don’t have to be an attorney nor hire one in order to get fantastic results! For the proper form of such dispute letters and so so much more, go to the Attorney’s Guide to Credit Repair for fast easy guaranteed results.

Want to Buy a House, But Ran Into A Wall

You Shall Not PassIs this the door to your mortgage broker’s office? Or does it feel like it is?

It looks like what a Hufflepuff might expect when trying to sneak into the Gryffindor wing of Hogwarts.

Obtaining a mortgage loan is a tough business, but so worth it, in most cases. When you own your home, yes, it is true that you have to fix the toilets, pay for new screens and fix the cabinet doors when your children use them to swing on. But you also cannot be evicted by a landlord who has decided to sell the property because he’s getting divorced or because his mother died and you’re really her tenant and he was just the property manager.

Of course you have to pay the mortgage or the bank will eventually ask you to leave, but how do you make sure that you have an affordable mortgage payment? One of the easiest things you can do, is to make sure that you have good credit.  Good credit, means low interest rates. Low interest rates mean low monthly mortgage payments. That low monthly house payment is what makes keeping your home possible. You don’t want to be house poor, which means you have a house payment so high that you cannot afford new clothes or car repairs.

Times have been tough, your income is finally what it must be to buy the home that you’ve promised yourself and your family. But times were tough and many of your debts went unpaid when you were out of work, or work was slow, or during the divorce or after the car accident. Whatever it was, while we all understand that times were tough, banks don’t. They never did. Yes, you want a home loan, but if your credit is bad, they have to charge you a high interest rate. The idea is to get their money out of you as fast as they can before you eventually default again.

Maybe it won’t happen, but if your credit score says you’re basically a viking and the raiding parties have been slow lately, then they have to base their interest rates on something. They can’t take your word for it, nor mine. The only objective method is to look at what all of your creditors have been saying about you. Sometimes creditors get the information wrong, sometimes it’s negligence, sometimes a sin of omission, sometimes they just don’t care and you’ve been slandered and libeled and your mortgage broker can’t do anything about it. What then?

Good credit isn’t magic, Harry Potter is going to wave his wand and yell, “Experian Patronis!” at your mortgage broker. You have to do something. You could spend a lot of money and hand it off to an attorney and hope that the wheels of justice grind faster for this attorney than they do for every other attorney in existence. Fat chance. And yes, that’s expensive. Or you can take the matter into your own capable hands and get started now.

If possible, rather than working on cleaning up your credit when you start looking for house, start right now. If you’ve already started looking for a house, just get started right now anyway. It just takes some effort on your part. But the effort is easy enough, affordable and best of all, guaranteed.

The Attorney’s Guide to Credit Repair is your guidebook, your road map and the leader in credit repair. The attorney who created it, Robert Shapiro, has been an absolute leader in credit repair law and practice for years. He has boiled his experience and know-how into this convenient guide. Do it now.

I Refuse To Pay And You Can’t Make Me

Credit Repair
Has the Gremlin in the Sky got you down?

Is your financial situation murky and cloudy?

You’re not entirely remedy-less. Under the Fair Debt Collections Practices Act or FDCPA, did you know that a refusal to pay carries the implicit instruction to consumer collection agents to cease and desist all contact with you by telephone? It does. It works the same as the cease and desist notice which is also part of that code.

But many creditors don’t realize that this is so. Rather than sending a cease and desist notice, why not send a refusal to pay? And if you send “I refuse to pay and you can’t make me,” as your refusal, the collectors will probably violate the cease and desist portion of that refusal to pay within only hours or days of receiving the refusal to pay and perhaps do it a couple or even several times.

Under the FDCPA if a creditor violates the cease and desist notice, they can be subject to owing to you, $1000 per violation. In a short time, they might owe you more than you owe them.

According to the code you do have to sue them to get them to pay you, but the least you have is leverage. The fact that they have violated the law can be used to settle out of court. Let’s call it even, more or less. Under the FDCPA you also have an attorney’s fees clause in the code, so that if your collectors won’t settle and you have to sue, then they have to pay your attorney to sue them. This is of course my favorite part of the code.

While you’re doing this, you should also be paying attention to your credit rating. Credit repair isn’t as complicated as many might say. It does take some effort on your part, but you can do it yourself, affordably and quickly. As you repair your credit, you will need a road map, or a guide. Doing it yourself is tricky if you truly try to do it with no help at all. I’ve read the code sections in the Fair Credit Reporting Act and they are on your side. They provide the framework for your successful repair of your credit. However, they don’t tell you how to write the letters or truly explain the content required to be successful.

I wish I could say that I had written the guide you need to use to repair your credit, but at least I can refer you right to it. The Attorney’s Guide to Credit Repair is exactly what you need to effectuate your credit repair. It’s easy, fast, affordable and it works, provided that you do the work.

I used to charge lots of good money for this kind of work before my bankruptcy practice got too busy. They are practically giving this information away.  And, the Attorney’s Guide to Credit Repair guarantees your fast, effective, credit repair success.

Most Debt Statutes of Limitations Are Four Years in California

Credit Repair is the Answer
Your Credit is About to Take Flight

Your good credit is about to take flight, and you don’t even know it yet. If some of your debts are particularly old, you’re in luck.

In California and in many states, (you can look them up) the statutes of limitation, or the amount of time allowed for another party to sue you, are sometimes shorter than you think.

For most debts in California, the statutes of limitation are only four (4) years from the breach of contract. You are in breach of contract from the first month you stop paying. Now, this is not exactly a great strategy for getting out of debt. If you’re planning to use this as a strategy to get out of debt then you’re probably in for a disappointment. A bankruptcy is a better choice if you have a significant amount of debt and if the debt is not very old yet.

Usually one or a couple of creditors will sue you and obtain a money judgment against you and once that happens, the creditors with judgments have now extended their statutes of limitations to up to twenty (20) years in California.

However, for those that didn’t sue you, or in rare cases, where no one has sued you, then you’re in luck. But as I said, it’s relatively rare that no one sues you at all, if you have had a significant number of credit cards and/or medical bills in the past.

It’s also tough to gauge if you haven’t been sued because you might think, well I’ve never received a summons and complaint before, also known as service of process, so, therefore, you think no one has sued you. Think again. Many times people have been sued and they didn’t even know it. If you were divorced and had to move, if you lost your job and couldn’t afford the mortgage or rent where you were living, if the job you found was required you to move to a different state, if you maybe had that happen more than once or twice, then the creditor didn’t know where to deliver the summons and complaint and probably served the new tenant at your old apartment or served the new owner at your former home. Sometimes even if you tell a creditor your new address, when they send it to their own attorneys, they somehow conveniently forget to tell their attorneys that you told the creditor your new address. At least, that’s what the attorneys will say and it’s probably true.

So you must do a check of the courts where you were used to live to make sure that you haven’t been sued. Most of the courts can be accessed online. Riverside, San Diego, Orange, LA and San Bernardino County courts are available online although some charge fees for name searches but usually it’s a small fee.

Just because a creditor hasn’t sued you and the statute of limitations has passed, does not mean that collection agencies will not blow up your phone and harass you all day begging or threatening you to pay the debts. However, if they have truly missed the statute of limitations, you can send them an appropriate letter and the matter is done.

You do have to be certain of when you quit paying though. If you’re wrong and they still have time left, they may at that point file the lawsuit. I remember one client who had a joint account with his wife, but they divorced, however, she kept paying the account for another six (6) before she quit, so the client had the date wrong by six (6) months. Also, and this is indeed rare, a creditor or collection agent might falsify records to show additional payments later in order to extend the statute of limitations. If you’ve moved a couple times then you might not be able to prove them wrong if you cannot locate your records. At that point a bankruptcy might be the best solution, call me if you need one, Call 951-200-3613 for a free bankruptcy consultation.

But if your creditors and collections truly missed the statutes of limitation then by writing to them and saying: “Hey, you missed the statute of limitations, and stop calling me.” Then they have to stop calling. And if you’re right about the correct amount of time having passed since you last made a payment, then they can’t sue you either.

But sometimes what they’ll do is to sell the account to a different collection agency and you will hear from them in a month or two later instead. Send them the same kind of letter.

For more information I would like to refer you to the best guide on how to write letters like this and no doubt you’ll probably need other letters that you can write and this guide tells you exactly how. I wish I could say that I wrote it, but the information is fantastic, clear, easy to use and affordable. For the Attorney’s Guide to Credit Repair, Click Here.

Credit Repair Takes Effort

Credit Repair

No one is going to fix or repair your credit for you, not without some significant money exchanging hands first. But you can fix your own credit. You can repair your credit with the appropriate guidance from someone who knows what they’re doing.

Unfortunately with my busy law practice I don’t have that kind of time to help you with you efforts to rehabilitate your credit. I can steer your in the right direction though. With the Attorney’s Guide to Credit Repair, you will know the next step to take.

It’s fast, affordable, and real. Credit Repair you can afford because you are making the effort yourself. The step by step guide will bring you confidence in the market place and can give you the credit scores you need to buy a home, a car with a low interest rate, or perhaps open a business loan, provided however only if you make the efforts.

Credit repair to most people is a mystery. Why is the sky blue? I don’t know, because it is. Why is my credit score below 600? Usually you have some ideas if that’s the case. However, when you ask but how do I bring it up to 700 or more? Lots of people will tell you that they’ll do it for you for only, a lot more money than you have in the bank. Many will tell you that you just have to write the appropriate letters to get credit reporting agencies such as Experian, Trans Union and Equifax to correct the information in your credit files. But how do you do that?

I’ve reviewed the Fair Credit Reporting Act’s code sections and the laws regarding Fair Credit Reporting are on your side. In my bankruptcy law practice I would charge quite a lot of money just for a consultation on the subject, but when I found the Attorney’s Guide to Credit Repair, I was floored. They’re practically giving you all of our secrets for pennies on the dollar.

At that point, I couldn’t see why I wouldn’t just refer you to Click Here!

You’ve Gone Through Bankruptcy

What Now?

First, take a breath, for a little while, have a cup of cocoa and relax.

Credit Repair
Relax, Have a Cocoa

Afterwards, there’s plenty to do.

Bankruptcy is to credit repair as spiders are to a good nights’ sleep. Bankruptcy is the Credit Reaper. Nevertheless, sometimes bankruptcy is all you can do. You have to be able to pay for rent or mortgage, feed the family put tires on the car and gas in the tank. How can you do that if your wages are being garnished or you find your bank account empty one Saturday morning when you know your check was deposited yesterday?

If you need a bankruptcy, call I can help. Call 9512003613.

On the other hand, two of the easiest things to do to repair your credit or rehabilitate your credit, is to open a secured credit card and/or buy a car.

Don’t buy the car unless you absolutely must and there is no reasonable alternative. If you have to buy a car, the interest rate will be ridiculous. So, if you have the ability to borrow from a relative, or if you have been able to save  since your bankruptcy, or if you can take a small 401k loan to buy a reasonable car, go ahead. Make it reasonable, you don’t need a lot of options, so skip the bells and whistles. Get an AM/FM radio and air conditioning that both work. Stop there because the lower your car payment, the better your credit will be. If you want to buy a house down the road, avoid buying the car on credit if you can.

The next thing that is easy to do, in general, is to get a secured credit card. You go to your bank or a bank and bring in say $500 cash and ask for one. Usually if you’re paying the amount of the credit line you want down, they’ll do a credit-check light, or in other words they might not even do one. At my bank, because I was already banking there, they only checked their own records. I gave them $1000 in cash, and they gave me a card with a $1000 credit line with very few questions. The interest rate will be horrible but keep reading and you’ll see that it doesn’t much matter if you do as outlined below.

So do you buy something and pay it off? No. You can of course and that will help, but is actually not the best strategy when trying to improve your overall credit health. So you now have a credit card with a $500 credit line, what do you do? Save up another $500 first. Then find something you need to buy for $500, such as a new computer or a TV or something. Then don’t pay it all off at once. You’ve got the money saved, so you pay it off 1/3rd at a time.

By doing it 1/3rd at a time, the credit card company will like you. You’ve paid it off quickly so you’re a good risk. But you also had to pay some interest, and that makes you a great risk. Pay it off too fast, means no profit for the credit card company. Pay it off too slow and that means high profits for the credit card company but also high risk and that is not so good for them. They want want profit and high performing contracts in their portfolio because that has a positive impact on the stock price.

In a year, not only will you get your deposit back but they’ll double your credit line or more. And that increase in credit-line is the most important thing that happens to your credit rating. It can’t happen unless your payments are in good standing, so yes those are important too. But you need both to have good credit, exceptional credit means you have good standing in your payment histories, but also high credit lines and low balances.

Note that I said histories. So you want more than one account open and in good standing for at least twelve (12) months after your bankruptcy is over, or in a chapter 13, twelve months after your confirmation of your chapter 13 payment plan. After the Great Recession, many couples each got a secured card and then put each other on each other’s cards. Then each had two (2) cards.