admin on May 4th, 2008
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It may seem like a long shot, but I’ve always believed in the rule that if you don’t ask, you’ll never receive. Sending a letter won’t cost you a lot of money and you may just get someone on a good day where they are willing to help you out. So how do you approach a creditor and ask them to remove a debt that is being reported accurately?
Dear CEO name,
I am writing you to discuss my credit card account #xxx which was established x years ago. I am writing to ask you to consider removing this account from my credit report. I understand this is an unusual request, but the Fair Credit Reporting Act does now say you must report all credit accounts to the credit bureaus.
When I established the account I was financially secure, and I certainly understand that it was my responsibility to stay current on payments. Unfortunately I made several financial mistakes and fell behind. When I was able to, I paid off the debt in full on xxxx. I am hoping that after you review my circumstances and the fact that I have paid off the debt, you would be willing to remove the negative remarks with the three credit bureaus.
I an not saying the information is inaccurate, I am simply asking you to use your discretion to remove the account from my credit report in an act of goodwill. I appreciate your consideration in this matter.
Sincerely,
Your Name
admin on May 4th, 2008
I see a lot of people trying to keep their car with outrageous monthly payments and I often wonder if it’s really worth it. Everyone knows that when you drive a NEW car off the lot you are pretty much paying more than it’s worth right away. So when it’s time to file bankruptcy, is it really worth it to keep your car?
Well, what the heck are you going to do right? You can’t live without a car! Fortunately, or unfortunately, the automobile market is seeing exactly what the housing market is right now, a lot of defaults, repossessions and bankruptcy filings. That means there are a lot of newer cars on the market at used auto dealers for a fraction of your current monthly payments.
Chances are, if you do some research on available vehicles in your area you can find a car that is just as nice, with lower monthly payments. Filing bankruptcy is supposed to relieve you of massive financial obligations, so giving up your car may just be worth it.
admin on May 4th, 2008
Your credit report and credit score are pretty important in everyday life. Day by day, it’s getting more important. Your rates for everything from health insurance, car insurance, to utility bill deposits, and your chance at a new job are affected by your credit history. Whether or not you believe this is fair, and I for one don’t, you do need to know the rules so you can be aware of any discrepancies on your credit report.
Typically, accurate negative information can be reported on your credit report for seven years. This seven years begins from 180 days after the debt is FIRST reported as delinquent. Some companies will start the time over if you make a payment on a delinquent debt, but this is against the Fair Credit Reporting Act and you can have it removed from your credit report.
There are exceptions to the seven year rule however. Bankruptcy can be reported on your credit report for up to 10 years, and information reported due to an application for a job with a salary of more than $20,000 or an application for more than $50,000 worth of credit or life insurance has NO time limit.
Tax liens can stay on for 7 years, but from the date the tax is actually paid, rather than from when you defaulted. A lawsuit or judgment that is granted against you can be reported for seven years or until the statute of limitations runs out. If you have defaulted on student loans that are guaranteed or insured by the U.S. Government they can be reported for seven years after certain actions.
The section of the Fair Credit Reporting Act that covers consumer reports is 605, which states as follows:
§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]
(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.
(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.
(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)
(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.1
(b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with
(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.
(c) Running of reporting period.
(1) In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.
(2) Effective date. Paragraph (1) shall apply only to items of information added to the file of a consumer on or after the date that is 455 days after the date of enactment of the Consumer Credit Reporting Reform Act of 1996.
admin on May 4th, 2008
Under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, audits were to be performed on bankruptcy filings after Oct 20, 2006 in order to see if bankruptcy filers were hiding assets, income, debts, or making glaring mistakes on their petitions. As of January 14, 2008 the bankruptcy trustee program suspended the audits due to a lack of funding to pay the independent accounting firms that were performing the audits. The audits will be reinstated if they find alternative funding, but until then, we will at least get to see the results of the audits that were performed in 2007 in the spring of this year.
admin on May 4th, 2008
We’ve all heard of credit counseling and debt consolidation, which we will explain in more detail later, but what else could be done without resorting to filing bankruptcy? Honestly I had never thought of a new system that could be put into place until this week when I heard about the Ministry of Justice’s (UK) new debt plan.
Much like the options that are available for student loan repayments in the US, UK residents will be able to defer payments to some creditors for a year, providing they can prove they need to defer the payments (job loss, medical issue, divorce) and that they will be able to make payments after the year is over. Debts will incur normal finance charges during this time, but there will be no late payment fees or penalties that are normally incurred when a borrower can’t pay their bills.
I like several things about this plan. First is that while debtors are in the plan they can take on no new debt. The second is that the plan gives debtors a chance to survive by getting rid of the astronomical late fees that often force them into bankruptcy once catostrophy hits. Now they can pay the bills that need to be paid, like the mortgage, until they are back on their feet. Since 90% of US bankruptcy filers have suffered either a job loss, medical issue or divorce, it seems reasonable to believe these repayment options would benefit our residents as well.
