Bankruptcy Information

Are you one of those people that gets a large tax refund every year and you pay bills; or take a vacation with it?  You’re providing the federal government with a free, no interest loan on YOUR money if you do. MSN posted this article, How to Adjust your Tax Withholdings, which provides a step-by-step guide to show you how to adjust your tax withholdings to put more money each paycheck in your pocket.  Why should you do this you ask? 

Besides the fact that you’re loaning your money to the government free of interest and you know they would never reciprocate the sentiment, you’re needlessly tying up your money in an account you cannot access but once a year when your big fat refund arrives. Be

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Tags: Refund, Tax Refund

I have rarely discussed bankruptcy attorneys fees in this blog even though I know that fees are an important consideration for readers who are considering filing bankruptcy. I do not want this blog to be interpreted as an advertisement for my own fees in relation to those charged by other attorneys. However, I recently read two general discussions about bankruptcy attorneys fees which should be very helpful to prospective bankruptcy debtors, and therefore, warrant discussion.

First, I saw a blog post by North Carolina attorney Susanne Robicsek titled, “How Much Does It Cost To File Bankruptcy?” Her article is an excellent guide to comparison of bankruptcy fees charged by different attorney attorneys in your geographical area. Ms. Robicsek explains clearly why an attorney may charge more or less for your bankruptcy than others, and why some bankruptcy attorneys charge higher fees than other attorneys. She also discusses the alternative of do-it-yourself bankruptcy petitions to save money.

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Tags: Attorneys Fees, Bankruptcy

New reports highlight some interesting information about two topics near and dear to those who have filed or are considering filing for bankruptcy: underwater mortgages and student loan debt. Here’s a look at what kind of picture the latest numbers paint.

Students Don’t Need to Default to Be Behind on Loans

The Institute for Higher Education Policy released a report last week showing that two-fifths of those who borrowed money for educational purposes fell behind on their payments at some point in their first five years of repayment. So what does this mean?

• Widespread repayment difficulties: These numbers may not even reflect the current rates of repayment difficulty, given that graduates in the last few years have faced a much tougher job market than those who graduated five years ago.
• Old measures may be inadequate: Traditionally, studies on student debt have focused on the rate of default rather than delinquency. Loo

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Tags: Underwater, Underwater Homes

Remember Catch-22 and that “damned if you do, damned if you dont” mentality? Well that is exactly how credit works these days.

If you are responsible, pay off all your debts on time and live a relatively debt-free, all cash life, you can be penalized by mortgage companies when you want to purchase a home. Even though, you are financially responsible and living completely within your means.

Oftentimes, mortgage companies penalize a person for having too little credit and of course, you get penalized if you have too much credit or if your credit is less than stellar.

Mortgage companies like to see at least 3 open lines of credit to make sure that you are credit-worthy. So if you would like to live a relatively debt-free life and the only reason you want to get a mortgage at all is because you didnt have the large pile of money that it would cost you to buy a house just sitting around in your bank account waiting for you to find the perfect home, you may be in for a big shocker. You can be penalized for having too little credit as much (or maybe even more) than for having too much credit or too poor credit.

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Tags: Credit, Credit Catch22

A recent press release from the National Consumer Law Center highlights a new federal rule that, if not modified in the next two months, will take effect May 1st and should better protect the bank accounts of people receiving government benefits. Here’s what you need to know.

When Creditors Can’t Garnish Your Money

If you’ve ever filed for bankruptcy or been in serious debt, you may be familiar with the practice of garnishment, which occurs when a creditor collects money directly from your wages or bank account to cover a debt you owe.

• Current law protects certain funds: As federal laws now stand, creditors are prohibited from garnishing certain payments from the accounts of debtors (that is, people who owe them money). These funds include Social Security payments, disability payments, veterans’ benefits and other benefits for low-income and disabled people.
• Current practice permits the garnishment: Despite the prohibition against garnishing such funds from bank accounts, it seems that many banks regularly freeze the accounts of customers whose creditors request a garnishment from the bank. While c

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Tags: Bank