Articles Tagged with credit score

Bankruptcy Lawyer Bryan W. Stone answers the question: “What are the pros and cons of bankruptcy?”

While the economy has recovered somewhat since the “Great Recession” and housing market crash of 2007, millions of Americans are still struggling to pay the bills. For starters, health care costs have drastically risen in the last decade as prescription medication and premiums seem to double in price every few years; fewer Americans own homes now than they did before the housing crash; and the median net worth of families today is just $97,300, which is 30% less than the average in 2007, which was $140,000, according to Vice News. If you are worried about your gloomy financial state of affairs, you should consider talking to an attorney about your best options for getting out of the hole in which you are currently stuck. Filing for bankruptcy could be the right move, or it could seriously jeopardize your future. A Charlotte bankruptcy attorney will be able to provide you with assistance today.

Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 13 bankruptcy?”

If you’re considering filing for bankruptcy one of things you’re likely concerned about is the impact filing can have on your credit report and thus on your financial future. Filing now may be the right thing to do, but you also likely have plans for down the road that you don’t want to see go up in flames thanks to the bankruptcy. Some are curious to know whether one type of bankruptcy is better for your future credit score than another. To learn more, keep reading.

Bankruptcy Lawyer Bryan W. Stone answers the question “Do I need an attorney to file bankruptcy?”

Many people with good credit may consider naming someone else as an authorized user on a credit card or other credit account, an attempt to build up the score of the other person. One question that many have is how this process works and, more specifically, how much information will carry over from one person’s credit history to the authorized user. Does good information come with the bad? How about past credit problems, such as a bankruptcy? To find out more, keep reading.

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

Everyone knows that bankruptcy is a last resort. To file will cost money you money, take time and wreak havoc on your credit score, making it all but impossible to secure new loans or open new lines of credit in the short-term. Given these consequences, it wouldn’t make sense to consider filing for bankruptcy unless you had exhausted all other options.

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is a bankruptcy discharge ?”

 

Anyone who has passed through the bankruptcy process and received a bankruptcy discharge notice in the mail may experience an understandable sense of joy and relief. It is over. Or is it?

House Auction Charlotte Bankruptcy Lawyer Mecklenburg Chapter 7 AttorneyAt the risk of sounding like a lawyer, whether “it” is “over” depends upon what one means by “it’ and what one means by “over.” In the world of bankruptcy, very little is ever really over, and even the bankruptcy discharge—while an important formality—does not end any actions that are still pending in a bankruptcy.

A bankruptcy, at its essence, is less like a lawsuit and more like probate—gathering the assets of a dead person and using them to pay off the person’s debts. The difference is the person is not dead; the person is you, and sometimes the best recourse you have against creditors is to sue. In bankruptcy, your trustee may sue creditors for a variety of reasons, and your trustee may answer and defend against creditors or others who sue you, for whatever reason. These cases can drag on long after a person has received one’s bankruptcy discharge.

A bankruptcy discharge does not, as many believe, wipe the proverbial slate clean, so if clearing yourself of any and all debts is what you define as having “it” over and done, then you may misunderstand the effect of a bankruptcy discharge.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get credit after filing personal bankruptcy?”

 

What is the first thing a person should do after bankruptcy? Get a credit card!

Life after debt Charlotte Chapter 13 Lawyer North Carolina Chapter 7 AttorneyNot really, but you should at least think about opening some new credit lines, according to Gene Melchionne, a Connecticut-based bankruptcy attorney. Think about credit, but “Don’t go crazy trying to get new credit right away,” Melchionne advises.

The nice thing about emerging from bankruptcy, Melchionne says, is that you no longer have to worry about the debts that were dragging down your budget before bankruptcy. On the other hand, your credit score is in the gutter, and you need to take on some credit in order to start to bring the score up.

Melchionne suggests starting with a small credit limit and monitoring credit card use closely to make sure you can pay off the entire balance each month.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What are the pros and cons of bankruptcy ?”

 

How bad does a credit score have to be to be bad?

Fake Credit Card Charlotte Debt Lawyer North Carolina Bankruptcy AttorneyThe short answer is it depends, but let’s begin with the basics: What is credit? Credit, in short, is you. You don’t have any money, but you need it. So you go to someone who has money: a lender. You ask the lender for money, and in return, you promise to pay the money back, with interest. Interest means you will pay the lender a little extra when you repay the money loaned to you. This sweetens the deal for the lender and induces the lender to loan you money.

The lender you ask for a loan doesn’t know you, so how can the lender be sure you will repay the money? To answer this question, the lender turns to one of three (or all three) consumer credit reporting companies. These companies are called Equifax, Experian and TransUnion. They gather all kinds of information about ordinary (and extraordinary) Americans like you. They know whether you’ve paid your bills (or not), whether you’ve repaid loans (or not), whether your payments were on time or late, whether you’ve gone through bankruptcy and whether a house you own has ever been foreclosed upon.

After all that information is compiled, these companies—called credit bureaus—assign a number to you between 300 and 850, with 300 being the worst and 850 being the best. Someone with a score in the 700s has “good credit.” That means the person has a history of paying bills and repaying debts. The person is a good candidate for a loan. Lenders may be less inclined to give loans to people with bad credit because their credit history may show they have taken out loans and been unable to repay them.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get credit after filing personal bankruptcy?”

 

Credit card companies use a simple formula when they determine whether or not they want you as a customer. Can you pay the debts you are currently paying and add another debt? If they suspect the answer is no, your credit card application could be declined.

Different credit cards Charlotte Mecklenburg Bankruptcy Lawyer North Carolina Debt AttorneyCredit card companies determine whether or not they want you as a customer based on information you submit on your credit application as well as information listed on your credit report and other public sources.

If you live on credit, so to speak, you should consider the effects bankruptcy may have on your lifestyle and your ability to maintain and obtain credit. Many people considering bankruptcy or who are just beginning the bankruptcy process question whether they will ever be able to get credit again. They seek credit but, time and again, they are declined.

It’s hard sometimes to see the light at the end of the tunnel, but there is one. As debts are paid down, paid off and discharged, a debtor’s credit—and credit score—recovers. Time, as the saying goes, cures all ills, and the same is true of credit. As your credit delinquencies recede further into the past, your credit present grows brighter—assuming you’re not taking on new debt and pushing yourself into bankruptcy.

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Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “What is Chapter 11 Bankruptcy?”

 

Though most people have heard of Chapter 7 bankruptcies (known as liquidation bankruptcy) and Chapter 13s (used to restructure debts), Chapter 12 bankruptcies are far less common. To find out more about what a Chapter 12 bankruptcy is and how it is used, keep reading.

 

Number 12 sign Charlotte Chapter 12 Bankruptcy Lawyer North Carolina Debt AttorneyWhat is a Chapter 12 bankruptcy?

 

Chapter 12 is actually one of the newer categories of bankruptcy and was only formally made permanent in 2005. Chapter 12 is used specifically for family farmers and family fishermen. Chapter 12 is similar to a Chapter 13 in that it allows the restructuring of a person’s debts to avoid liquidation or foreclosure.

 

Who is eligible for a Chapter 12 bankruptcy?

 

Very few debtors are actually eligible to file Chapter 12 bankruptcy and in 2011, the most recent year that numbers have been made available, only 630 of the overall 1.4 million bankruptcies filed in the U.S. were for Chapter 12 cases.

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