All items from Vonda S. McLeod, Attorney at Law

Your credit report says loads about you. Are you a dependable bill payer? Does the amount you have outstanding in bills mean you might not be a good credit risk?  Have you been sued?  Useful information for creditors seeking to potentially extend credit to you.  So, don’t you want the information on your credit report to be accurate?  It may not be accurate, according to a recent government study.
The Federal Trade Commission’s report found one in four consumers had errors on their credit reports that might affect their credit scores.  These errors could either prevent them from getting credit or raise the rates the consumers paid for credit.
These are eye-opening numbers for American consumers,” said Howard Shelanski, Director of the FTC’s Bureau of Economics.  “The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly.  If they don’t, they are potentially putting their pocketbooks at risk.

Marco Bellucci / Foter / CC BY

Q:  I want to file Chapter 7 bankruptcy and I should qualify because I don’t own anything, right?  The only thing I have is my car and my house.  I would pay all my bills now but I’m waiting on a lawsuit settlement that hasn’t come in yet.  –Amanda P.
A:  Ah….the old “I don’t own anything” scenario.  I hear this one a lot.  Let’s break down the question.
First, qualification for filing Chapter 7 depends largely upon your income and the result of the Chapter 7 Means Test.  The amount of debt you have and the amount of property you have are not factors in determining your eligibility to get into a Chapter 7, however, they may be factors in determining whether you want to file Chapter 7.

Q:  I keep hearing about debt settlement companies.  Are they a legitimate way to avoid bankruptcy? – John L.
A:  I have not found any evidence that debt settlement programs are a legitimate alternative to bankruptcy.  I find them risky and deceptive and prefer to recommend alternatives which give you legal protection from creditors.  Lately, I can’t turn the TV channel without someone trying to sell me on a debt settlement plan.  As a bankruptcy attorney, I witness first hand the effects of failed debt settlement plans.  The complaints usually start with “Well, I got involved with this company that was supposed to settle my debt…”.  After that, the stories are sadly all the same.  The company never settled the debts and now the person is being sued.
If you are considering a debt settlement company keep these things in mind:
Built to Fail?

Living from paycheck to paycheck?  Had a major expense recently but not enough funds to cover it?  Are you frequently overdrawn at the bank?  Being desperate for cash can turn you into a victim.  Here are three things to do to avoid letting desperation keep you broke.
 
EVEN IF YOU ARE DESPERATE DON’T GET PAYDAY LOANS