Stay up to date with all the latest changes to the bankruptcy law with Justin M. Myers Blog. If you are facing bankruptcy or foreclosure and need to file Chapter 7 or 13,Salt Lake City Justin M. Myers Attorney can help you
If you file for bankruptcy under Chapter 13, there are certain debts that will be released by a discharge. Many people who are going through bankruptcy tend to think that all debts will be released once they file for Chapter 13 bankruptcy, but that’s not how it works.
But before we get started, let’s get something out of the way: let’s define the term “Chapter 13 discharge.” What it means is basically a formal order by court that releases you (the debtor) from all dischargeable debts, and orders your creditors to stop harassing you and trying to collect the debts from you.
Once your debts have been discharged under Chapter 13 bankruptcy, you no longer have to pay these debts. Chapter 13 discharges fall into two categories:
Discharge granted to a debtor upon completion of all payments under the Chapter 13 plan; and
Discharge granted to a debtor who is unable to complete his/her plan payments due to circumstances he/she is not at fault for and has no control over (aka the chapter 13 hardship discharge).
Do note, however, that the first type of a Chapter 13 plan discharge releases a debtor from more debts than the other type.
What debts are not discharged under Chapter 13 bankruptcy?
Typically, these debts will not be discharged after you file for bankruptcy under a Chapter 13 plan:
Debts that are repaid outside of the bankruptcy plan
Debts relating to alimony, child support, or maintenance
Installment debts that are due after the completion of payments under the plan
New debts incurred when the bankruptcy plan was already in place
Debts for most government funded or guaranteed educational loans
Debts arising from wrongful death or personal injury caused by the debtor while driving under the influence of drugs or alcohol; and
Debts for restitution or a criminal fine from a sentence on the debtor’s conviction of a crime.
What debts shouldn’t be paid in full under a Chapter 13 plan?
Under a Chapter 13 bankruptcy plan, you can pay off any debt, both secured or unsecured. In fact, our Salt Lake City Chapter 13 bankruptcy lawyer says that even nondischargeable debts may be paid under the plan, including but not limited to child support, alimony, and student loans.
Many people were misguided to think that all debts must be paid in full if they file for bankruptcy under a Chapter 13 plan. That’s simply not true. Generally, certain debts such as those relating to taxes and fully secured debts must be completely paid off. But the vast majority of debts can be paid off only in the amount that you can reasonably afford.
In fact, if your Chapter 13 plan is nearing its completion, the unpaid balance of some debts may be discharged, our best bankruptcy attorneys in Salt Lake City say. Whatever is the case, it’s important to speak to a bankruptcy lawyer to find out what debts will and will not be discharged after you file for Chapter 13 bankruptcy.
Get a free consultation by contacting the offices of JMM Legal. Call at 1-801-505-9679 or complete this contact form.
Getting into unmanageable debt is rarely a conscious decision, and can be one of the most stressful experiences in anyone’s life. If you’re barely staying afloat in a sea of debt, and are starting to see bankruptcy as your best option, you may be wondering about some of the technicalities. For one, what happens to all your belongings after you file for Chapter 7 bankruptcy? As you may already be aware, there are certain possessions you can keep after filing for Chapter 7, and some that you may have to sacrifice for the sake of a more secure financial future.
What Property Is Exempt during Chapter 7 Bankruptcy?
Rather than allowing a fear of losing everything hold you back from filing for Chapter 7 bankruptcy, if that’s the best option for you, it’s sensible to consider the specifics of what you will and will not actually lose during the process. You may be pleasantly surprised by what possessions are exempt. While Chapter 7 involves liquidation of assets, you could be able to retain ownership of:
Vehicles worth up to a specified value
Tools and other equipment essential for you to do your job
Essential household furnishings
Jewellery worth up to a specific value
Wages you have earned but are yet to receive payment of
Any damages you may have won from a personal injury claim
There are some possessions that cannot be considered exempt from liquidation during the Chapter 7 bankruptcy process, and these include:
Any valuable collections you may own, including stamps, coins, or other collectibles
Valuable musical instruments
Investments, including stocks and bonds
Any homes or vacation properties you own, apart from your main residence
Cash, including any savings accounts you may have
Family heirlooms and antiques
Any extra vehicles in your possession
Filing for Chapter 7 Bankruptcy with a Salt Lake City Attorney
The bankruptcy of any kind is unlikely to have featured in your life plans but, if you’ve found yourself with a high level of unsecured debt, Chapter 7 could be a good route to getting back on your feet. These unsecured debts may include credit cards, loans and unpaid medical bills, amongst others.
Chapter 7 bankruptcy comes with both advantages and disadvantages, as you may expect. One main advantage of Chapter 7 is that it can take as little as 120 days to complete the process, compared to up to five years for Chapter 13. The downside is that you may lose some of those non-exempt items listed above. If you can’t meet minimum payments, this may be a worthwhile trade-off for a more secure future.
At the Salt Lake City offices of Justin M. Myers, we have helped numerous clients deal with their debt by filing for Chapter 7 bankruptcy or another form of debt relief. If you’d like to discuss your options with an experienced Salt Lake City Chapter 7 bankruptcy attorney, call us today on 1-801-505-9679 to schedule a free initial consultation.
If you’re reading this, you’re most likely going through a rough patch. Going bankrupt or being on the brink of bankruptcy is not something you should be trying to deal with alone, as the cost of failure is too high to take any chances.
If you’re considering to file for bankruptcy to get out of uncertainty and grasp for even the tiniest string of hope, do note that there are certain requirements you must meet in order to be approved.
Well, filing for Chapter 7 bankruptcy allows you (the debtor) to discharge certain specified debts in exchange for turning your nonexempt property, if any, over to a trustee. Filing for bankruptcy under Chapter 13, on the other hand, allows you to keep your property by proposing a repayment plan to make regular payments to creditors over three to five years.
So do you qualify to file for Chapter 13 bankruptcy? Check out these Chapter 13 requirements:
You’re an individual
You’re ineligible for Chapter 13 if you’re a bankrupt business entity. Only individuals and households (husband and wife) are eligible to file for Chapter 13 bankruptcy. Businesses, corporations, and limited liability companies (LLC) do not qualify for Chapter 13 bankruptcy and must consult a bankruptcy attorney to find out what’s the best bankruptcy plan for your particular business in Salt Lake City.
You haven’t been bankrupt recently
You will be banned from filing for bankruptcy under Chapter 13 if:
You discharged debt in a Chapter 13 plan in the past 24 months.
Debt was discharged under Chapter 7 within the last four years.
Your bankruptcy case wasn’t dismissed in the past 180 days
If you tried filing for Chapter 13 bankruptcy in the past 180 days and your case was dismissed, you will have to wait until after 180 days have passed to try again.
Credit counselling requirement has been fulfilled
In order to qualify for Chapter 13 bankruptcy benefits, you have to show documented proof that an approved credit counselling agency provided you with debt counselling in the past 180 days.
There are certain limits when it comes to filing for bankruptcy under Chapter 13. According to law, your unsecured debt should NOT exceed $336,900 in order to qualify for Chapter 13. If you’re wondering what is unsecured debt – these are the debts that are not secured by property (think: medical bills, credit card debt, etc.).
As for secured debt, there’s a limit of $1,010,650.
You filed your income tax returns
In order to qualify under Chapter 13 requirements, you – as a debtor – must file state and federal income tax returns for the previous four years. You must have proof of filing your income tax returns. Before you meet with creditors, it is highly advised to speak to the best bankruptcy attorneys in Salt Lake City to have a clear plan in mind.
You earn enough to repay debt
In order to qualify for Chapter 13, you must have sufficient income to pay the debt. Please note that you must have enough income, after deducting allowable expenses, for mandatory payments to priority and unsecured creditors, as well as for certain other payments after filing for Chapter 13 bankruptcy.
There are certain other Chapter 13 requirements a debtor must meet in order to qualify. Find out the full list of requirements by contacting our attorneys at JMM Legal.
Most of us have had financial troubles at least once, it’s a natural part of the ebb and flow of life. Nevertheless, there are options to alleviate the financial burden no matter how terrible your situation is.
Ask any financial expert or Salt Lake City chapter 13 bankruptcy attorney out there, and they will tell you that one of the best options is to file for Chapter 13 bankruptcy. But what can this type of bankruptcy do to your financial situation?
Or, if you’re facing foreclosure and could lose your property, let’s answer the question “will chapter 13 bankruptcy stop foreclosure?” Well, we have both good and bad news.
Does chapter 13 bankruptcy stop foreclosure?
Let’s start with the good news, right? If you choose to file for chapter 13 bankruptcy, the risk of losing your property to the bankruptcy trustee disappears. Moreover, this type of bankruptcy does NOT affect your mortgage in any way.
But it’s not all sunshine and roses, our chapter 13 bankruptcy attorneys at JMM Legal warn. The thing is: you could still lose your property, including your home, through foreclosure.
So answering your question, no, chapter 13 bankruptcy does not stop foreclosure. Meaning: bankruptcy filing doesn’t free you from the obligation to make your mortgage payments, and if you want to keep your home, you should be consistent with the payments even during bankruptcy.
But it gets better…
But don’t assume that filing for chapter 13 bankruptcy is useless and does not help you in any way to reduce the risk of losing your home. Our Salt Lake City attorneys say that this type of bankruptcy allows you to make up mortgage arrears.
By contrast, chapter 7 bankruptcy does not let you do that. Better yet, chapter 13 is a good option to avoid foreclosure as it allows you to remove second mortgages and HELOCs. However, you may need legal help from a skilled chapter 13 bankruptcy lawyer to make it work in your case.
How to make mortgage payments during bankruptcy?
If you choose to file for bankruptcy, you will have to make your mortgage payments directly to the mortgage lender. However, there are some cases when a bankruptcy trustee may require you to pay through your bankruptcy plan.
Obviously, however, paying your lender directly is always a more cost-efficient option, our best bankruptcy attorneys in Salt Lake City say. Why? Because the trustee’s fee is based on a percentage of payments made through your chapter 13 plan.
So in order to avoid high trustee fees, make payments directly to the lender. If the trustee prohibits you from paying your lender outside of your plan, speak to an attorney to negotiate a fair deal for you. When you’re dealing with bankruptcy, every dollar matters, which is why saving costs on trustee fees is important.
How to avoid foreclosure when you’re bankrupt?
Under the chapter 13 bankruptcy plan, as we’ve mentioned above, you’re allowed to pay back all of your mortgage arrears by the end of the specified time of the repayment period.
Typically, this translates to up to five years to make up mortgage arrears. To tell you the truth, this is the main reason why Salt Lake City residents facing foreclosure choose chapter 13 over chapter 7 bankruptcy.
However, Chapter 13 bankruptcy can stop foreclosure due to its automatic stay. Our Salt Lake City chapter 13 bankruptcy attorney explains that as long as you stay consistent with your mortgage payments make up mortgage arrears, the risk of losing your home in foreclosure is reduced to zero.
Consult our attorneys at JMM Legal to find out what type of bankruptcy you should choose in your particular case. Let us walk you through the entire list of pros and cons of chapter 13 and chapter 7 bankruptcy plans.
Call our offices at 1-801-505-9679 or complete this contact form to get a free consultation today.
Payday loans have become slightly notorious for encouraging those on low incomes and with poor credit to get into even more financial difficulty, thanks to exorbitant interest rates and the potential of getting into a never-ending cycle of borrowing and repaying constantly. While the model isn’t perfect and has, indeed, lead to increased debt and even bankruptcy for some users, others cite the small dollar loan as being a lifesaver when an emergency situation requires funds that aren’t otherwise available. Whatever your view on small dollar loads, they’re a valuable resource to quite a few Americans, but could soon be forced to come to an end.
Consumer Financial Protection Bureau Moves to Block Payday Loans
The Consumer Financial Protection Bureau recently, and very unexpectedly, announced that it intended to reopen a block payday loans, also known as small dollar loans. These loans, typically amounting to between $100 and $500, carry hefty interest rates and stiff penalties for late repayment, frequently leading to significant debt problems for the low income or unbanked individuals that tend to opt for them.
Should the proposed changes be made law, it’s predicted that a large proportion of lenders offering these loans would be forced out of business, reducing the amount of credit potentially available to people facing expensive emergencies. However, at a typical cost of 15% for a two-week payday loan, it’s easy to see why lending can spiral and bankruptcies can follow. While most people who’ve available of a small dollar loan have said they appreciated the option being available to them, there’s also a valid argument for blocking them. The consumers currently benefitting from these payday loans would, however, then be left without a viable alternative. To offer an argument for keeping payday loans, it has been proven that, in states where small-dollar loans are already prohibited, a lot more people are bouncing checks and missing payments.
It seems, like so many issues we may face in our lives, there’s no simple right or wrong answer to this one.
Financial Difficulty? Salt Lake City Bankruptcy Attorney Can Help
Falling on hard times can be a very difficult experience, in emotional terms as much as financial. As you may have learned the hard way, it can be incredibly easy to get into debt, but significantly more difficult to get out of it. You fall behind on a few payments, creditors start hounding you for money while adding numerous charges that make the balance unpayable… and so the cycle begins.
Salt Lake City bankruptcy attorney Justin M. Myers understands the emotional impact of debt and potential bankruptcy. Don’t shoulder the burden of harassment from creditors by yourself, get some help from a legal professional with extensive experience and a proven track record of success. There are solutions, and this Salt Lake City legal team will work diligently and efficiently to find the best option for you.
To arrange a free consultation and find out how a Salt Lake City bankruptcy attorney could help you tackle that overwhelming debt, call us today on 1-801-505-9679.
Repossession can leave you both financially and emotionally crippled for years, which is why it’s vital to take preventative measures to avoid repossession at all cost.
Our Salt Lake City car repossession attorney at JMM Legal warns that a vehicle repossession remains on your credit report for seven years.
Not to mention that a car repossession results in other negative consequences such as being sued in court and spending an enormous amount of money on the legal battle, having your account turned over to a debt collection agency, and facing a wage garnishment (when your employer will be required to withhold a certain amount in your paychecks to pay off the debt).
While the financial and legal damage of a repossession becomes less severe over time, it is still not something you’d want to joke around with, our best car repossession attorneys in Salt Lake City warn.
What is car repossession?
In order to understand ways to avoid a repossession, let’s figure out what it is. In plain English, repossession means that the lender is reclaiming ownership of the vehicle that has not been paid off by you.
While cars are the most common asset eligible for repossession, the lender could also reclaim ownership of assets such as real estate, property, jewelry, artwork and other assets that could be sold to pay off the unpaid debt balance.
How car repossession works in Salt Lake City
Our repossession attorneys at JMM Legal explain that the lender can reclaim the car as soon as a credit account is delinquent. In fact, the lender of a car loan is not even required to give you notice and can repossess the vehicle tied to the loan if you fail to make the payment in time.
However, our car repossession lawyers warn that there are certain procedures that lenders must follow when repossessing assets. In particular, they cannot “breach the peace” when reclaiming the vehicle. Meaning: using threats or force is not legally acceptable.
Reversing a repossession is almost impossible, which is why it’s highly advised to exhaust all legal means to prevent your vehicle from being seized. “But how?” you may wonder.
Well, our car repossession lawyers at JMM Legal have prepared a guide on how to avoid a repossession in Salt Lake City and other cities of Utah.
How to avoid car repossession?
If your financial situation gets out of hand and you realize that you won’t be able to pay your next payment on a loan, pick up the phone and contact a car repossession attorney right away.
The second step would be to provide the attorney with all relevant information regarding your loan. Your attorney will then reach out to your lender and negotiate a settlement before you miss your first payment.
Representatives from banks or credit unions are people, too. So in order to avoid a repossession, you don’t have to threaten to sue them if they attempt to repossess your property.
Instead, your car repossession attorney will offer them a reasonable proposal and explain to them when the next payment will be made.
You have to understand that, depending on your loan, the lender may react differently to your inability to pay off the debt. That’s why it’s vital to adapt, be proactive and be prepared for any response from your lender.
Some lender is willing to compromise and agree to a payment arrangement plan, others, meanwhile, would be less interested in compromising, and would do whatever it takes to take back the property.
In these cases, you need a skilled car repossession lawyer by your side. Here at JMM Legal, our experienced attorneys are available 24/7 to review your debt situation and help you avoid a repossession by crafting a personalized plan for you.
Consult our Salt Lake City vehicle repossession attorneys to find out your best course of action. Call JMM Legal at 1-801-505-9679 or complete this contact form.
If you’re a business owner going through a rough time, you’ve probably considered filing for bankruptcy to save your business and assets. But there has been no one around to either encourage or discourage you to go with one of the bankruptcy options for small businesses.
Besides, what’s the difference between Chapter 7 vs 11 vs 13 Bankruptcy anyway? Today, our best bankruptcy attorney in Salt Lake City – Justin M. Myers – is going to answer your burning questions about business bankruptcy.
How to file for bankruptcy (and how NOT to)
You’ve probably heard about the ongoing scandal brewing over Breitburn Energy Partners LP’s bankruptcy, which the oil producer giant filed for in 2016. Shareholders of the company, which has been bankrupt for over 18 months, are taking legal action to prevent the company from obliterating their investment and feeding them with a large tax bill as crude prices continue to rise.
Breitburn, which filed for Chapter 11 bankruptcy protection after oil prices had collapsed to below $30 a barrel from over $100 in 2014, is being accused of using a “scheme” to hand out their assets to creditors while hurting the bankrupt company’s stakeholders in the process.
Clearly, something was wrong with Breitburn’s bankruptcy strategy, and now bankruptcy attorneys on both sides are trying to figure out the best way out.
Our Salt Lake City bankruptcy lawyers at JMM Legal are going to review three bankruptcy options for business owners in Utah and all across the nation to prevent you from landing in legal trouble similar to what Breitburn is now facing.
Bankruptcy options for business owners in Utah
The choice to file for bankruptcy as a business owner never comes easy. It takes weeks of Googling, consulting bankruptcy lawyers, talking to creditors and your bank, and the while learning thousands of new legal and banking terms and getting more confused every day.
But it doesn’t have to be that complicated when you have an experienced bankruptcy attorney by your side who would lay out a viable bankruptcy plan to save your business and prevent you from losing all your hard-earned assets.
As a start, let’s review the three bankruptcy options for sole proprietors (business owners) in Salt Lake City and elsewhere in Utah.
Note: if you’re the sole proprietor of your business, the business is not considered a separate entity. Meaning: creditors don’t differentiate between you and your business, which means you’re responsible for its debts.
What it means for you when filing for bankruptcy as a business owner is that your claim must include both your personal and business debts and assets, our bankruptcy attorneys at JMM Legal say.
Chapter 7 Bankruptcy vs Chapter 13 or 11 Bankruptcy
What’s the difference between Chapter 7 Bankruptcy vs Chapter 13 or 11 Bankruptcy, you may be wondering?
If you’re filing for Chapter 7 Bankruptcy as a sole proprietor, its major advantage is that your business and personal debts will be wiped out without obliging you to make regular payments for a specified number of months or years.
Note: not all types of debts are being discharged when filing for Chapter 7 Bankruptcy. Consult our Salt Lake City bankruptcy lawyers to find out whether or not all of your debts would be wiped out after filing for Chapter 7.
Besides, when filing for Chapter 7 Bankruptcy, all of your assets – both business and personal –will immediately become the property of the bankruptcy estate. There are also the so-called exempt assets that you’re allowed keep and use in certain cases.
Our bankruptcy attorneys at JMM Legal conclude: filing for Chapter 7 Bankruptcy is a good option if you don’t have much property. If you have a huge estate, on the other hand, think twice before filing for Chapter 7, as your most essential assets could be lost.
Filing for Chapter 13 Bankruptcy as a business owner (or Chapter 11 if your debts exceed those that are permitted under Chapter 13), meanwhile, is your best option if you want to keep your business up and running while being bankrupt.
Note: in order to file for Chapter 13 or 11 Bankruptcy, you will be required to have enough monthly income to be able to make payments every month (those payments, however, will be much smaller than your current payments).
Consult our Salt Lake City bankruptcy attorneys to find out which bankruptcy option would be best for your particular business and your particular situation. Let our experienced attorneys walk you through bankruptcy laws and give you A-to-Z pros and cons of each bankruptcy option.
Feeling overwhelmed by debt isn’t an uncommon occurrence, plenty of people both here in Salt Lake City and beyond, have been there for various reasons. If you currently feel like you’re out of your depth and are barely treading water, you may be considering bankruptcy as a possible solution. As an experienced attorney will tell you, Chapter 13 bankruptcy can be a far less painful option that you may think.
Is Chapter 13 Bankruptcy a Good Option for Me?
Chapter 13 bankruptcy may be appropriate if you’re struggling with immediate demands for payments, rather than a lack of income per se. You may think that bankruptcy involves hitting rock bottom financially, but that’s not always the case. With Chapter 13 bankruptcy, you can get a little breathing space from creditors’ calls and letters, while using your disposable income to reduce unsecured debts. Another great feature of Chapter 13 bankruptcy is that you may even be able to keep your house, assuming you’re able to keep up with mortgage payments under your settlement plan. As financial circumstances can vary hugely from person to person, a Salt Lake City Chapter 13 bankruptcy attorney can advise if this is a suitable route out of your debt.
Although your lawyer will explain in more detail how your case will proceed, Chapter 13 bankruptcy generally involves:
3 to 5 years to pay off your unsecured debts using disposable income
Opportunity to catch up on missed mortgage payments, and continue paying through a settlement plan
Supervision of a court-appointed trustee, who’ll take charge of your payments
Safeguard your assets against repossession or foreclosure. Any proceedings currently in motion will be halted when you file for Chapter 13 bankruptcy
To qualify for Chapter 13 bankruptcy, you must have no more than $394,725 in unsecured debts and/or $1,184,200 secured debt. You must also:
Not have unsuccessfully filed for bankruptcy in the past 180 days due to unwillingness to appear in court
Agree to start credit counseling with an approved provider within 180 days
Propose a repayment plan
Work with a trustee, who takes responsibility for your payments to creditors
Not work as a stockbroker, commodity broker, or be filing as a business or sole proprietor
Why Is Chapter 13 Bankruptcy the Best Option to Eliminate Debts?
If you’re one of the Salt Lake City residents struggling with debt, your first step should involve contacting an experienced Chapter 13 bankruptcy attorney for advice. Your lawyer can give you a free evaluation, as well as an estimate of the costs involved in filing for bankruptcy. You can expect to pay $235 filing fee to the bankruptcy court, plus $75 miscellaneous admin fee.
The information you’ll need to provide to your Chapter 13 bankruptcy attorney includes:
A full list of all creditors, as well as the current amount owed to them
Full details of your income and where it comes from
Details of any property you own
Any contracts or leases which exist in your name
An accurate record of your monthly outgoings and expenses
Your most recent federal tax bill, along with details of any unpaid taxes owing. You must be able to prove your taxes are in order for the past four years
Not all forms of debt can be cleared with bankruptcy, including Chapter 13. You’ll still be liable for any student debt, unpaid taxes, child support, or alimony payments.
When you attend your consultation with an experienced Salt Lake City Chapter 13 bankruptcy attorney, the full process will be explained clearly, and you can rest assured that we will do our utmost to guide you through it as smoothly as possible.
Bankruptcy is one of the most stressful periods of any person’s life whether you’re based in Utah or California.
And while bankruptcy makes you financially exhausted, it also does tremendous damage to your credit score. A bad credit history, in turn, prevents you from obtaining credit and getting good rates.
Luckily for you, our Salt Lake City bankruptcy attorneys at Justin M. Myers, Attorney-at-Law, LLC know how to help you rebuild your credit after bankruptcy through a combination of healthy financial habits.
Guide: how to rebuild your credit after bankruptcy
Be consistent for a long period of time. Better yet, be consistent with your finances always. Pay your bills on time and, if you have any credit obligations, address them in a timely manner.
Keep in mind that delinquencies (a missed payment of one month) stay on your credit report for seven years before going away.
Analyze your credit report. When reviewing your credit report, set realistic goals about rebuilding credit after bankruptcy. Aim to get a score of at least over 700, but reaching the “excellent” score of 750-850 is obviously a priority.
Consult an experienced bankruptcy attorney to set up a customized plan of rebuilding your credit to reach the excellent score of 750-850 as soon as possible.
Dispute any incorrect or inconsistent info on your credit report. Seek the legal advice of a Salt Lake City bankruptcy lawyer to dispute any incorrect information that appears on your credit report, for example paid debts that are listed as unpaid.
Be smart about your budget. It’s essential to know exactly how much money you make in a month and how much you spend each month. Budgeting allows you to be consistent about creating savings and reducing non-essential expenses (the holidays are over, so many non-essential expenses can be eliminated).
Being smart about your budget also allows you to be consistent with on-time bill payments and be able to pay for unexpected bills in emergency situations. Speaking of on-time bill payments…
Pay your bills on time. There’s not much to say about this one other than warning you that a payment history accounts for more than a third of your credit score.
Put a little bit away in savings. Generally, it is advised to put between 5 and 10 percent of your monthly income away in savings, but saving any amount is always a good idea (this helps avoid using credit in case an expected expense comes up).
Fact: studies show that having as little as $250 in savings can be enough to protect you from resorting to credit in case of emergency.
Get a new checking and savings account. Our bankruptcy attorneys at Justin M. Myers, Attorney-at-Law, LLC advise people recovering from bankruptcy to open a checking and a savings account at a local bank or credit union (consider the interest rates and fees before opening accounts).
You need a secured credit card. You may want to avoid using debit cards when rebuilding credit after bankruptcy, as these cards take money straight from your bank account. Using a secured credit card, on the other hand, is credit-friendly as it allows you to borrow money and pay it over time.
Pay off the balance every month. Failing to pay off your balance regularly can negatively affect your credit score.
Stay away from finance companies. It may be tempting to get help from finance companies, but our bankruptcy attorneys advise you to avoid them. After all, these companies only help you to make a profit at your expense.
If you feel as if going through it alone is challenging and you need guidance in rebuilding your credit after bankruptcy, reach out to one of our best Salt Lake City bankruptcy attorneys to get a personalized plan about budgeting, savings and maintaining a good credit score.
Call the offices of Justin M. Myers, Attorney-at-Law, LLC at 1-801-505-9679 or complete this contact form to get a free initial consultation.
The holiday season is one of the most joyful times of year… but not if you’re unable to pay off debt.
In fact, the holidays may become as stressful as ever when you’re trying to enjoy the holiday season with your family but your phone keeps ringing off the hook with creditors demanding your to pay off credit card loans, or bank representatives in black suits knocking on your door.
That isn’t exactly the most fun experience one can have during the holidays, the time of year when you’re supposed to buy Christmas presents for your family and friends, decorate your home, and buy loads of food… It all costs money!
But can creditors actually give you break during the holidays? Our Salt Lake City bankruptcy attorneyJustin M. Myers says that there’s a way to make even the most annoying lenders stop bothering you with their calls and visits.
In order to avoid severe financial damage for not paying off your debt – and make the holidays more joyful and stress-free – our bankruptcy lawyers have outlined a plan: what to say to creditors so that they give you break.
Pick up the phone and make that call
Identify the right person within the bank or company that provided you with the loan, and reach out to them. That person must have the authority to make changes to your current debt plan and bank account, our attorneys at Justin M. Myers, Attorney-at-Law, LLC warn.
It’s essential to maintain a two-way and calm conversation when speaking to a creditor on the phone. Don’t forget that he/she is just a regular person, not some bank-operated robot trying to rip you off.
You need to make sure that your proposal is mutually acceptable. Also, be willing to compromise. After all, you’ll have to negotiate a plan that would ease your debt burden and make creditors stop bothering you during the holidays.
Listen to what you’re being told on the phone, and never get aggressive. Never threaten or yell at the person on the phone. Better yet, it’s advised to be legally represented by a bankruptcy attorney to take care of the call for you.
After all, you have personal feelings and emotions attached to your debt, so negotiating may be tough for you when creditors start throwing around confusing legal and baking terms at you.
Let an experienced bankruptcy lawyer take care of the call and find a solution that would satisfy your needs and goals. If you’re planning to have stress-free holidays while embroiled in debt crisis, being legally represented by a lawyer is probably the best thing you can do.
Have precise figures
When speaking to creditors, it’s essential to give precise figures and timelines about your current financial situation. No lender likes to speak to investees who are trying to feed them promises and approximates with a teaspoon.
Have your precise monthly expenses and your total income listed in front of you. Think when you might be able to restart normal account activity to start paying off the debt. Be realistic about your plans.
Take into consideration all factors, including holiday expenses and work-related struggles. Also, explaining your problem is just as important. Keep in mind that you’re speaking to people. Regular people, just like you.
However, knowing your rights and responsibilities as a credit card holder as well as Salt Lake City laws regulating banking activity is just as essential during negotiations with your creditors.
That’s why it’s highly recommended to hire a Salt Lake City bankruptcy attorney who would represent you in your best interests and make creditors stop bothering you with calls and visits during the holidays.
Consult our attorneys at Justin M. Myers, Attorney-at-Law, LLC to know all the legal options available in your particular case. Call our offices at 1-801-505-9679 or complete this contact form for a free case evaluation.