What can credit counseling do for you?

If you recently looked into filing for bankruptcy, you may have heard the term credit counseling.

Before you will be able to file for bankruptcy, you are required to take an approved credit counseling course as a way to determine if bankruptcy is your best option. Credit counseling is mandatory when applying for both Chapter 7 and Chapter 13 bankruptcy even if a payment plan will not be feasible for your situation. Once you complete the course you will be given a certificate stating you completed the course. In some instances a repayment plan is proposed; if so, you must submit this to the court as well. After your bankruptcy begins, you will be required to take another course teaching you financial management skills.

The new skills you learn during credit counseling will put you on your way to financial freedom.

Call the law office of Attorney Erwin F. Meiers, III to discuss your bankruptcy and credit counseling options.

Beware of Zombie Debt

Zombie debts can come back years later to haunt you.

With all this talk of zombies in the news, here's another type of zombie you may not have known about.

No, it's not flesh eating zombies, but zombie debt.
Zombie debt is a term that has been applied to debts that were (or so you thought) settled and done. Because debts can be sold from one collection agency to another there is a great opportunity for making money in the reanimation (this is where the Zombie moniker comes in) of a debt you thought was resolved. Knowing about Zombie debt is important because even debt that has been resolved through bankruptcy or resulted from identity theft can come back to haunt you. Some consumers have even been threatened or sued over zombie debt, both practices that could be considered illegal if the debt is fraudulent.

If its illegal why is it happening?
Each state has its own statute of limitations on how long a debt can go unpaid before you are no longer responsible for paying it. However, collection agencies can purchase these debts from the original creditor for just pennies on the dollar allowing them to make a huge profit if you pay on it. Paying on the debt or even admitting that it is yours can reopen the statute of limitations.

So do you really owe on this debt and if not, how do you kill something you thought was dead?
First, find out if the debt is yours and was not paid. Many zombie debts are the result of identity theft, are fraudulent debts or are past the statute of limitations and you are not responsible for paying them. If you are unsure of the debt, do not discuss it with the collector over the phone. Ask for the mailing address of the company and dispute it in writing. If the debt is legitimate and you do not respond to the collection agency, they can take you to court. If you receive notice that you are being taken to court, contact a lawyer and dispute the debt in court with legal representation.

Don't let zombie debt get your credit score, contact Attorney Erwin F. Meiers, III today to discuss your debt.

http://www.investopedia.com/terms/z/zombie-debt.asp#axzz1yuKcpBqV
http://money.howstuffworks.com/personal-finance/debt-management/zombie-debt.htm
http://www.forbes.com/2008/10/31/debt-creditors-default-pf-education-in_af_1031investopedia_inl.html

Experiencing increasing calls from debt collectors?

Are incessant phone calls from debt collectors and credit counseling companies driving you nuts? Are you stuck in a rut and the bills are piling up?

Have you considered bankruptcy?
Bankruptcy is a debt solution available to help you start back on the track to financial freedom.

What is bankruptcy?
Bankruptcy is an option available to consumers who cannot afford to repay debts owed. The most common type of bankruptcy filings are Chapter 7 and Chapter 13. Chapter 7 is a form of bankruptcy in which the debtor must liquidate their assets. Whereas, Chapter 13 allows the debtor to retain their assets while making scheduled payments on the debt.

How will it affect my credit score?
While filing for bankruptcy will appear on your credit report, it doesn't mean your credit has been compromised entirely. With good payment history after bankruptcy you may be eligible to apply for lines of credit after only a few years.

As with any legal matter make sure you obtain professional advice prior to making a decision. You have questions, we have answers. Contact us to discuss your bankruptcy options.