A Las Vegas Business Press article discusses the growing trend of lenders coming after developers for their personal holdings
On February 24, 2010,
in Bankruptcy, Finance,
by blacklobellolaw
Credit and Its Problems – a free seminar, March 3rd @ 7 PM at Sahara West Public Library. RSVP Abe Geller 869-8801
On February 17, 2010,
in Bankruptcy,
by blacklobellolaw
Rebuilding your credit score after bankruptcy is not as difficult as one might imagine. Whether you file bankruptcy or not the most important factor in improving your credit score is the ability to demonstrate a positive-payment history which really comes down to common sense. With that in mind, below are some common sense ideas to help you get started:
First, pay the debts that survive bankruptcy ON TIME. Certain debts may be non-dischargeable such as student loans. Other debts, such as car loans may have been reaffirmed during the bankruptcy. Pay these monthly debts religiously and early!
Second, you can obtain a secured credit card from a bank. A secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. For instance, the cardholder who puts down $1,000 will be given credit in the range of $500 to $1,000. However, do not make the mistake of using your available credit. Maxing out your credit cards hurts your credit score.
Also, all secured credit cards are not the same. Before signing up for a secured credit card, look for the following:
- No application fee and reasonable annual fee. Some secured cards tack huge upfront and annual charges onto their accounts; you do not need to pay these to build your credit;
- Reporting to the major credit bureaus. You are not helping your credit score unless your payment history is being reported to the three major bureaus: Equifax, Experian and TransUnion. Before you apply for a card, call and ask if the issuer regularly reports to all three; and
- The option to convert to an unsecured card after 12 to 18 months of on-time payments. Good behavior should get you upgraded to a regular credit card within a year or two.
Third, obtain revolving debt. It is very difficult on the immediate months after receiving a discharge for a bankruptcy to obtain revolving debt. However, in some cases, a friend or family member may be able to add you as an authorized user to an existing credit card account. If the card holder is responsible with the monthly payments, the credit card company will report these payments as a positive payment history on your credit report.
Fourth, a high-interest credit card, should be considered as a last resort because the terms and interest rates are horrific. People who have recently declared bankruptcy tend to be amazed at the number of credit card offers they receive after their bankruptcy. Remember that using these types of cards got you into this mess to begin with. Therefore, be judicious and sensible in deciding which offers to accept.
Finally, monitor your credit reports from all three bureaus: Equifax, TransUnion, and Experian, on a regular basis. It is very common for a credit report to have numerous errors. If there are errors on your credit report, FIX them. To fix a mistake, go to each credit bureau website and file a formal dispute. Since you just filed bankruptcy, your credit score is VERY fragile and requires vigilance and regular attention. A single late-payment further hurt your already-damaged credit score beyond repair.
The ultimate goal in rebuilding your credit is to demonstrate a history of responsible credit management. This requires time and effort. Remember, because of the bankruptcy on your record, your credit score is very fragile and requires vigilance and regular attention. Fortunately, with each month, and each on-time payment, your credit score will increase.
Randy M. Creighton, Esq.
On February 11, 2010,
in Bankruptcy, Finance,
by blacklobellolaw
Randy M. Creighton, Esq., will “Credit and its Problems,” a free seminar at the Sahara West Library Wednesday, March, 3rd at 7 p.m. Contact Abe Geller at 702.869.8801 or email ageller@blacklobello.com for additional information
On February 2, 2010,
in Bankruptcy, Real Estate,
by blacklobellolaw
Reading: “Extra staff to fight foreclosures”( http://twitthis.com/mercsq )
On February 2, 2010,
in Bankruptcy,
by blacklobellolaw
Should I file for bankruptcy or do I have other options?
While this question might be broad, it allows your lawyer to discuss all of your options. Your lawyer can discuss the benefits of Chapter 7 and Chapter 13, as well as options other than bankruptcy that you may not have considered yourself. This overview may provide you with a clearer understanding of the pros and cons of filing bankruptcy.
Who will actually be handling my case?
In some cases, the lawyer you consult with will not actually be handling your case. It is important to know who will handle your case and also whether this person is a lawyer. In many consumer bankruptcy “mill” practices, a non-lawyer performs the majority of the work on your case.
How much of your time is devoted to bankruptcy cases?
Though some lawyers have 20 years of experience, they may only work on two or three bankruptcy cases a year. Therefore, they will not be as experienced as lawyers who work bankruptcy exclusively for much shorter periods of time. Bankruptcy laws have recently changed so it is important to know that your lawyer is familiar with these new laws.
How much do you charge for your services?
This might seem like an obvious question to ask initially but there are benefits to waiting until the end of the consultation. First of all, you can evaluate all of the other services the lawyer plans to provide. Many of the consumer bankruptcy “mills” advertise a low price but their services are very limited and exclude many of the customary services. Thus, your fee will increase exponentially to file your case. Also, it is important to know if there are any other expenses that may be incurred during the process that may be charged to you. With a lawyer, as with so many other goods and services, you get what you pay for.
Randy M. Creighton, Esq.
On January 21, 2010,
in Bankruptcy, Uncategorized,
by blacklobellolaw
Filing for bankruptcy hurts your credit for 10 years.
Not True. Bankruptcy stays on your credit about 7 to 10 years. Although the bankruptcy will stay on your credit, you can start rebuilding your credit once your bankruptcy is discharged. Making current, full payments on debt is one way to start building your credit while you are still in the bankruptcy. Once you are out of bankruptcy, make sure that you watch your income to debt ratio and try to not finance more than 40% of your credit limit.
I will never be able to get another credit card or loan.
Many consumers believe they will not be eligible for any type of credit after a bankruptcy filing and discharge of debt. The opposite is true. Once debts have been discharged for a period of time, the process of credit restoration can begin and new trade lines can be opened. In some cases, clients receive credit card offers in the mail only two months after receiving their discharge. While the rebuilding of credit takes time and effort on the part of the debtor, bankruptcy is not a credit death sentence.
You will lose everything you own.
Not True. The goal of bankruptcy is to protect you and your assets, not to punish you and toss you into the streets. In probably 95% of the Chapter 7 cases, nothing is lost. In virtually all of the remaining 5% of cases, the Debtor knows going into the process that some property will be surrendered either to the Chapter 7 Trustee or to the secured creditor.
If you are behind in mortgage payments and need time to catch up, bankruptcy offers you the chance to reorganize your debts and catch up on the amount you are behind in payments, called “arrears,” over a period of 3-5 years. Try asking your lender if they will take your arrears over a 3-5 year period and they will fall over laughing! Once in bankruptcy, the lenders have no choice but to cooperate so long as you meet the qualifications and maintain the planned payment arrangement.
All debts are wiped out in Chapter 7 bankruptcy.
Not true. Certain types of debts cannot be discharged or erased. They include child support, alimony, government-issued or government-guaranteed student loans, and debts incurred as the result of fraud. It’s also very unlikely that a judge will discharge legal settlements you have been assessed, such as payments to someone who sued you.
Very few people qualify to eliminate their debt through Chapter 7.
Congress made the requirements for eliminating debt through Chapter 7 bankruptcy tougher with the new bankruptcy laws of 2005, but many people still qualify. Over 17,000 people in Southern Nevada filed Chapter 7 bankruptcy in 2009. At the initial consultation, an experienced attorney can determine if you qualify for Chapter 7.
You are a bad person for filing bankruptcy.
Not True. Bankruptcy is a solution to help good people go through a tough financial time. It provides people with the fresh start that they deserve. Congress passed the bankruptcy laws because Congress recognized that we needed a safety net in our economic system for individuals who have little control over large shifts in our economy or over unexpected personal developments such as job losses and medical expenses. The events of 2009 should make it clear to all of us that our financial health is not usually a function of whether we are good or bad people.
You can pick and choose what to put into bankruptcy.
Not True. You must list in your bankruptcy filing all of the debts that you owe and the property that you own. For some of those debts, such as car and home loans, we may help you “reaffirm” the debt, and it will be as if you never filed bankruptcy as far as that obligation is concerned. For debts that you do not formally reaffirm, if you feel like paying a particular creditor after the bankruptcy process has been completed, you are free to do that. But whether you intend to reaffirm or continue making payments on a debt does not affect your obligation to disclose all of your debts and property to us and to the Court.
You can only file bankruptcy once.
Not True. You can file for bankruptcy relief more than one time if you meet certain conditions. So that we can advise you regarding the availability of bankruptcy in your particular circumstances, you must disclose any prior filings to us.
Everyone will know that I filed bankruptcy.
Unless you are famous already, the odds are the only people that will know you filed are your creditors. Although bankruptcies are legal proceedings that are published in the newspaper, millions of people file bankruptcy and few papers publish every name. Even if they do, few people read the full legal notices every day.
All my debts will be eliminated if I file Chapter 7 bankruptcy.
Many types of debt can be erased. However, child support and alimony, student loans and debt incurred fraudulently cannot be eliminated.
If you are seriously considering filing for bankruptcy protection, you may wish to consult a reputable and experienced bankruptcy attorney who can help guide you through the confusing and complicated process. Having an attorney on your side can provide you with the peace of mind that comes from knowing all your bankruptcy bases are covered.
Randy M. Creighton, Esq.
On January 11, 2010,
in Bankruptcy,
by blacklobellolaw
Bankruptcy has a bad reputation in our culture but the truth of the matter is that, for many people, it is absolutely the best option to escape the stress of insurmountable debt and to gain a fresh financial start. Here is a list of some potential benefits to filing for bankruptcy protection:
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End those harassing phone calls and letters from debt collectors during the bankruptcy process and, for those debts that are discharged, for good! Creditors and debt collectors must stop contacting you for the duration of your bankruptcy case.
-
Stop repossession of your property and force creditors to return property that was already repossessed.
-
Halt wage garnishment during the bankruptcy process.
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Put an end to the foreclosure process and give yourself time to catch up on payments. Just knowing that you won’t immediately lose your home can benefit you in so many ways.
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“Strip down” your second mortgage to reduce overall house payment. If the home’s value is less than or equal to what is owed on the first mortgage, Chapter 13 can be used to change the second, third etc. mortgage(s) into unsecured debt which doesn’t necessarily have to be paid in full, thereby reducing the overall house payment. Legislation is being considered right now, that may allow certain filers to “strip” the home down to its actual value which crams down both mortgages.
-
Dispute any claims from creditors that you believe are false or inflated to gain more from you than what they are owed.
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Prevent your utilities from being cut off or, if they are cut off, require the utility company to restore service.
-
In a Chapter 13 bankruptcy, you may repay past-due taxes, alimony, child support, mortgage and car payments over a period of 3-5 years.
-
Possibly the most important benefit of bankruptcy is the allowance for the discharge, or forgiveness, of most, if not all, of your debts. Once you receive a bankruptcy discharge, you are no longer legally obligated to pay off those forgiven debts.
If you are seriously considering filing for bankruptcy protection, you may wish to consult a reputable and experienced bankruptcy attorney who can help guide you through the confusing and complicated process. Having an attorney on your side can provide you with the peace of mind that comes from knowing all your bankruptcy bases are covered.
Randy M. Creighton, Esq.
On January 8, 2010,
in Bankruptcy,
by blacklobellolaw
New Las Vegas bankruptcy data and Nevada bankruptcy data released by the government last week details just how bad the Nevada bankruptcy situation remains. The data set paints a grim economic picture, reinforcing the need for an experienced bankruptcy lawyer to help guide you through the process at a time when Nevada bankruptcy courts are experiencing unprecedented case volume.
In Nevada, 24,765 new consumer cases were filed in the first ten months of 2009; a 62% increase over the previous year. Specifically, over the previous year Nevada Chapter 7 bankruptcy filings increased by 75%, Nevada Chapter 13 bankruptcy filings were up 50%, and Nevada Chapter 11 bankruptcy filings increased by 38%.
Thus, it comes as no surprise that Nevada ranks first in bankruptcy filings per capita in 2009. The top five states for bankruptcy filings per capita in 2009 are Nevada with 10.58 per 1000 population; Tennessee at 8.52, Georgia at 7.39, Alabama at 7.35, and, 7.30 in Indiana.
Unfortunately, the upward trend of new filings shows no sign of abating. In Nevada, there were over 2,789 new filings in October of 2009, or a 60% increase overall compared to October 2008. This amounts to the second highest monthly total since Congress enacted the new bankruptcy laws in 2005. With Nevada’s unemployment rate remaining over 13%, bankruptcy filings are expected to continue to increase and possibly exceed 30,000 in 2009.
A full-service Las Vegas law firm can help you navigate the complexities of the bankruptcy process, explain the crucial differences between different sorts of filings, and design a personalized bankruptcy legal strategy for your specific circumstances.
Randy M. Creighton, Esq.
On January 6, 2010,
in Bankruptcy,
by blacklobellolaw
Many debtors choose not to file for Chapter 13 bankruptcy because it requires repayment of at least a portion of their debts. Chapter 7 bankruptcy, another option, wipes out many debts entirely. In some cases, however, Chapter 13 bankruptcy IS the better bankruptcy option. Furthermore, certain debtors don’t get to choose because not everyone is eligible for Chapter 7 bankruptcy leaving Chapter 13 as the only option available. Here are some good reasons to file for Chapter 13:
When You Cannot File for Chapter 7
You will not be allowed to file for Chapter 7 if you cannot meet some new requirements imposed by the 2005 revisions to the bankruptcy laws. Under these new rules, you cannot file for Chapter 7 if both of the following are true:
- Your current monthly income over the six months prior to your filing date is more than the median income for a household of your size in your state (go to the website of the United States Trustee, www.usdoj.gov/ust, and click “Means Testing Information” to see the median figures for your state).
- Your disposable income, after subtracting certain expenses and monthly payments for debts you would have to repay in Chapter 13, exceeds certain limits set by law. These calculations are commonly referred to as the “means test” — if you have the means to repay a certain amount of your debt through a Chapter 13 repayment plan, you flunk the test and are ineligible for Chapter 7 bankruptcy.
The means test can get fairly complex and, to make matter worse, Congress has its own definitions of “disposable income,” “current monthly income,” “expenses,” and other important terms which, in some cases, can make your income seem higher than it actually is.
In addition, if you have received a Chapter 7 bankruptcy discharge within the last eight years or a Chapter 13 discharge within the last six years, you may not file for Chapter 7 bankruptcy.
When You Are Behind On Your Mortgage or Car Loan
If you want to make up the missed payments over time and reinstate the original agreement, you can in Chapter 13 bankruptcy. You cannot do this in Chapter 7 bankruptcy.
When You Have a Debt That Cannot be Discharged in Chapter 7
Tax obligations, student loans, or other debts that cannot be discharged in Chapter 7 can be included in your Chapter 13 plan and paid off over time.
When You Have a Sincere Desire to Repay Your Debts
You can benefit from the protection of the bankruptcy court if creditors are coming after you. The Chapter 13 process also provides the formal structure and deadlines that can you might find helpful in order to follow through on your good intentions.
When You Have Nonexempt Property You Want to Keep
When you file for Chapter 7 bankruptcy, you may keep only exempt property defined as property protected from creditors under state or federal law. You must give your nonexempt property to the bankruptcy trustee who can sell it and distribute the proceeds to your creditors.
In Chapter 13, however, you don’t have to give up any property. Instead, you repay your debts out of your income. Therefore, if you have nonexempt property that you do not want to part with, Chapter 13 might be the better choice.
When You Have a Co-Debtor on a Personal Debt
If you file for Chapter 7 bankruptcy, your co-debtor will still be on the hook which means your creditor will undoubtedly go after the co-debtor for payment. If you file for Chapter 13 bankruptcy, the creditor will leave your co-debtor alone, as long as you keep up with your bankruptcy plan payments.
Randy M. Creighton, Esq.
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