Options for Resolving/Dealing with Debt – Doing Nothing

This is an option, primarily for elderly clients, but it can be for anyone with a fixed income, like Social Security or Social Security disability or with income which is exempt from garnishment (see my articles on exemptions).  The individuals who choose this option should be at a stage of their lives where they will not need credit (like a car loan or a mortgage) and they should have few, if any, assets.  The assets that they do own should … Continued

Options for Resolving Debt – Litigation

Litigation attorneys will probably take issue with what I am about to suggest, but where lawsuits are brought in a timely fashion, i.e., before the statute of limitations has expired, and there is no question that the debt belongs to the debtor, and any required proof is attached, litigation does not make a whole lot of sense (unless the objective is to buy time) as the creditor is going to get a judgment against the debtor – it’s just a … Continued

Options for Resolving Debt – Debt Resolution

There are several ways to resolve a debt:  (1) by paying the debt in full, (2) by settlement of some type; or (3) by way of bankruptcy.  Which you choose again depends on your circumstances and when you pay – either pre- or post-judgment. If you have the means to pay the debt in full, then obviously you should do so.  Payments can always be made directly to the creditor.  Some courts, like NC, allow a debtor to also pay … Continued

Options for Resolving Debt – Bankruptcy

This article is intended to provide a general overview of the bankruptcy process.  For more information about bankruptcy in general, you can use the links on my website to go to some other websites. NOTE:  I AM NOT A BANKRUPTCY ATTORNEY AND THIS DOES NOT CONSTITUTE SPECIFIC BANKRUPTCY ADVICE FOR YOUR STATE.  YOU ARE ADVISED TO CONSULT WITH A BANKRUPTCY ATTORNEY REGARDING YOUR PARTICULAR CIRCUMSTANCES. BANKRUPTCY IN GENERAL Bankruptcy is the option of last resort.  I liken it to possessing … Continued

Debt Management

Debt management is a subset of debt consolidation.  Like debt consolidation, a debtor takes several credit card bills and reduces them to one monthly payment at a lower interest rate.  For many debtors who have lost a job or suffered a reduced income and are trying to get back on their feet debt management may be the way to go.  However, there are some considerations and consequences that a debtor has to consider before going this route, If you are … Continued

Debt Resolution

Debt resolution, also known as debt settlement or debt negotiation conjures up many negative connotations.  In fact, many attorneys who post on various legal advice sites frequently mention scam in the same sentence as debt settlement.  And they would not be far from wrong as there are many bad actors that prey upon those who are already in need of help and unbelievably make a bad situation worse.  So a debtor who is considering this option needs to do some … Continued

Options for Resolving Debt – General Considerations

I frequently answer many questions from people who find themselves in debt and don’t know what to do.  Whether their debt is current and about to become delinquent or those with a judgment that is already entered, the options are the same.  Which one a debtor chooses depends on the debtor’s unique circumstances, the kinds of debt they have, their assets and their income.  So learning about options is important and a debtor needs to know about all options in … Continued

Understanding Your Credit Score

There’s a lot of hype these days regarding knowing your score and identity fraud, like the catchy commercial to get your “free credit score” by signing up for a credit monitoring service.  Do your wallet a favor and don’t. Most of your credit is made up of  what types of credit you have and whether its real estate (mortgages), installment (car loans or student loans) or revolving (credit cards or store credit cards), how much available credit you have vs. … Continued

Coping with Credit Card Debt

When you first get into trouble, document the reasons for your hardship and send your creditor a certified letter.  Make sure that you send it to the creditor’s correspondence address!   It may or may not be the same as the payment address.  The only way to know is read your credit card statement – it could be on the front or the back but it will be in mice-size type (get out a magnifying glass) and look for the … Continued

Debt Consolidation

Simply stated, debt consolidation is “the act of combining several loans or liabilities into one loan.  Debt consolidation involves taking out a new loan to pay off a number of other debts.  Most people who consolidate their debt usually do it to attain a lower interest rate, or the simplicity of a single loan.”  See http://www.investopedia.com/terms/d/debtconsolidation.asp#axzz2FNj7RySE The most typical example of this is where someone has high interest rate credit cards.  If the debtor has enough equity in his/her home, … Continued