How is an overpayment of Unemployment Compensation handled in bankruptcy – is it dischargeable?

Over the past few years, a lot of people have been losing their jobs and in order to make ends meet, they have filed for unemployment compensation benefits. In an effort to get back to a financial normalcy, they collect their benefits each week and look for that illusive job. They make things work as best they can, but then nothing happens and the bills continue to pile up. On top of those bills piling up, a letter comes from the Department of Labor explaining that the state made a mistake … [Read more...]

What happens to my credit report?

Did you know that filing a bankruptcy case does affect one’s credit report in a negative way?  Many debtors are under the belief that by filing bankruptcy, they will never ever be able to buy a house, car or anything else because they filed bankruptcy.  While filing bankruptcy is not going to produce a positive spin on a debtor’s credit history, nothing can be further from the truth.  Clients have shared with me the fact that they have taken a 200 point hit while others only 100 points.  … [Read more...]

INCOMES, DEBTS AND BANKRUPTCY

Sometimes I will get a phone call asking how much debt someone must have in order to file a bankruptcy.  Another question that comes up is regarding income levels, as in ‘can I file if I have too much or too little income?’ First, income levels as well as debt levels do not determine whether you can file, but will determine which type of bankruptcy you can file.  Yes, it is possible that you may earn too much income to file a Chapter 7 bankruptcy, but a Chapter 13 can be filed for those wage … [Read more...]

Can Bankruptcy Really help?

Many times, debtors aren’t sure whether filing bankruptcy will really help their situation or hurt them. The word bankruptcy has a tinge of negativity to it. History shows that the word comes from the Latin terms bancus (a bench or table), and ruptus (broken). Additionally, Italians have been known to use the word “bancarupta”which means bench broken or bank broken quite often when a banker/tradesman could not make good on his debts. So it is understandable when people try to find other ways to … [Read more...]

What are credit card companies allowed to do when attempting to collect on your delinquent account in Georgia?

Consumers need to know that protection against unscrupulous collection practices is in place through the Fair Debt Collection Practices Act (FDCPA). The Act covers any collection activity related to a credit card, personal loan, auto loan, medical bill and even your mortgage. A creditor cannot, for example, contact a debtor about a debt owed during inconvenient times, i.e. before 8:00am and after 9:00pm. Creditors are not allowed to contact other people about a person’s debt but may inquire … [Read more...]

If I file a bankruptcy is my credit ruined forever?

If I file bankruptcy, is my credit ruined forever? Short answer - no. The Fair Debt Reporting Act controls how your credit history is treated and reported. The maximum time any information regarding a debt stays on your report is 10 years. The filing of a Chapter 7 case will be reported on your credit history and will stay there for 10 years. If you file a Chapter 13 case, that information stays for 7 years. If you have negative information such as late payments, that also stays … [Read more...]

What about Consumer Credit Counseling? – Credit Counseling Atlanta Georgia

What about Consumer Credit Counseling? Over the past few years, a popular alternative to bankruptcy has surfaced. Consumer Credit Counseling Services (CCCS), a nonprofit organization financed by credit card companies and other consumer finance organizations, works with you to reduce some of your debt and create a plan to pay off the rest of your debt without the intervention of the Bankruptcy Courts. If your debt is not too overwhelming and you have sufficient income, CCCS may be able to … [Read more...]

11 Steps to a Safe and Happy Financial Future

Step #1: It is better to have some good credit rather than all bad credit. When times are worst, try to keep one or two of your accounts current. The foundation for rebuilding your credit can hinge on those one or two good accounts. Step #2: Stability is good. Try to avoid moving around too much. Step #3: A co-signer may help you in re-establishing your credit. … [Read more...]