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If you’re recovering from a bankruptcy filing or otherwise trying to keep your budget on track, you’ve hopefully spent some time developing a plan for holiday spending. And, if you haven’t, take a moment to consider some of these holiday spending figures, pulled from CreditBloggers.com:

• We tend to spend more than we plan to: Last year, according to sources, the average American family with a household income below $100,000 planned to spend $710 on holiday gifts – but ended up spending closer to $810. If you’re in a penny-pinching state of mind, keep careful track of holiday purchases.
• You may be able to get away with spending nothing: In one poll, it seems 12 percent of men noted that they planned to spend nothing at all on holiday gifts. That might work out if you’re the particularly charming (or particularly Scrooge-y) type, but otherwise, you might have to let others in on your plan. Consider ca

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| Tags: Holiday, Holiday Season
Posted December 7, 2010 by Amelie Hampton under Bankruptcy Articles

Credit score Q&A: “Why credit scores are different?”

In case you didn’t know, there are three 3 major credit bureaus, including Equifax, Experian, and TransUnion.

And if you order a credit report that gives you all three credit scores (which is recommended), they most likely will not match.

For example, you may see something such as the following:

Equifax: 740 Experian: 720 TransUnion: 760

So you may be wondering why there are three scores, and why the credit scores differ.

Well, these three private companies dominate the credit scoring realm, and are utilized by various banks and lenders to determine your creditworthiness.

However, some banks may only order credit scores from Equifax, while others only rely on scores from TransUnion.

Others may take the mid-score of all three, a common practice employed by mortgage lenders to get a better overall view of your credit history.

Credit Scores are Different for Three Main Reasons

First, the credit bureaus mentioned above receive data from your creditors at different times of the month.

As a result, depending on what day you order a credit report, data may only show up at one or two of the bureaus, not all three.

So a recent collection or charge-off may only show up at TransUnion and Equifax, weighing those scores down while the score at Experian remains elevated, that is, until the derogatory event is eventually reported there as well.

Secondly, not all creditors report all their data to the three credit bureaus – they may just send it to one or two.

And finally, the credit bureaus define consumer tradelines differently, meaning a charge card could be seen as a revolving credit card, and so forth.

As a result, credit scores may vary slightly, even if the same data is reported.

There is a lot of variation in the Fico score from bureau to bureau, which is why newcomer VantageScore is working to better align the data.

Most creditors rely on Fico score for their credit scores, but VantageScore is beginning to grab market share.

Related: Credit score range.

| Tags: Credit Scores, Different, Why Credit, Why Credit Scores
Posted December 4, 2010 by Brayden Laura under Credit Report

Bankruptcy, Simplified…

BANKRUPTCY, SIMPLIFIED

Many, if not most, of my clients express feelings of shame and guilt about filing for bankruptcy relief.

This is completely understandable, but it is ultimately based on the propaganda of the credit industry.

Sometimes it helps to simplify the bankruptcy process. Here’s what I tell clients who have misgivings, and what they all can better understand a few months into the process:

Let’s assume there are two members of the economy: Me and You.  You loaned me $1,000 awhile back, and now it is literally impossible for me to make any payments to you whatsoever.  Every last penny I currently make is reasonably spent on my living expenses.

You now have no one to buy your product, and I have no way to buy any of your product, although I desperately need it.  If this situation persists, you will have no income, and I will never be able to buy your product.

Enter Bankruptcy: I file, and now, relieved of the burden of the debt to you and the accompanying stress, can now make more money at my job (oh, wait, that brings more players into our tiny economy, but you get the idea) and can now afford to buy your stuff.

I get the stuff, making my life better, and you get the sale, making yours better.  And so on, and so on, and . . . .

Read more…

| Tags: Bankruptcy, Bankruptcy Simplified…
Posted December 4, 2010 by Imogen Lay under Credit Report

As the old saying goes the bigger they are the harder they fall. Recent economic events have proven this idiom true. Some of the largest companies in the world, like Worldcom, were over $100,000,000,000 in debt when they went under. We have decided to take a look at some of the biggest corporations that filed Chapter 13 bankruptcy in the last 20+ years.

| Posted December 3, 2010 by Amelie Hampton under Bankruptcy Articles

Finding the right bankruptcy attorney isn’t always easy

How Do I Find The Right Bankruptcy Attorney?

Once you have made the decision to at least talk with an attorney about the prospect of bankruptcy, then it becomes important to find the right bankruptcy attorney to help guide you.  Here are a few tips that I think are important in finding the right bankruptcy attorney to talk with.

Referrals Matter

If possible, ask friends or family in the community where you live if they have ever had any experiences in talking with or being represented by a bankruptcy attorney.  If this is not practical, or you don’t feel comfortable doing this, you may want to talk to an attorney in the community that you know or has represented you or a family member with another legal matter.  Chances are that attorney may not handle bankruptcy matters, but most will know of the right attorney to refer you to assist you with bankruptcy.  It is very common for attorneys that practice in one area to know who is the best attorney in another area of law that they do not practice in.  They almost always want to be able to steer you in the right direction and may very well end up recommending your bankruptcy attorney.

The Internet Is A Growing Resource

Also, you may want to check either on the internet or the yellow pages of your local phone directory.  Most attorneys that handle cases primarily in one particular area of law, such as bankruptcy, will want consumers to know that and will advertise or make that known either through a website or yellow pages advertisements.  The internet may be the more up to date place to check, as studies have shown that most folks find out about services now through websites as opposed to the yellow pages.

Is Your Bankruptcy Attorney Board Certified?

You may want to know if the bankruptcy attorney is Board Certified in Consumer Bankruptcy Law by the American Board of Certification.  This organization is the only certification group in the United States that give board certification in bankruptcy law.  Generally, an attorney that has taken the steps needed to obtain certification will have a deep knowledge of bankruptcy law and how it can assist you.  Also, you may want to know if the bankruptcy attorney is a member of the National Association of Consumer Bankruptcy Attorneys.  This voluntary professional association is the largest group to assist in the professional development of lawyers that primarily represent consumers seeking relief under the bankruptcy law.  This group has two meetings per year where attorneys discuss new and changing areas of the law and discuss developing ways to assist their clients.  Again, generally, if an attorney is a member of this group, he or she has taken a special interest in staying current on legal issues to best represent their clients.

Experience Level

Lastly, when you finally meet with the bankruptcy attorney, ask them how many cases they typically handle per month.  This will give you a good indication of their experience level and how they may best help you.  Just as when deciding on a surgeon, you would not want an attorney that only handles 1 or 2 bankruptcy cases every few months.  It would most likely be best to have someone who appears in court regularly and has the broad experience to assist you.

These are some general guidelines to use when searching for a bankruptcy attorney.  We will discuss more in upcoming posts.

John Rogers, Kentucky Bankruptcy Attorney

| Tags: Attorney, Bankruptcy Attorney, Right Bankruptcy, Right Bankruptcy Attorney
Posted November 30, 2010 by Imogen Lay under Credit Report

In November, Jeoffrey Burtch, the Chapter 7 Trustee in the AE Liquidation bankruptcy (formerly “Eclipse Aviation”), began filing preference actions against various creditors of Eclipse.  Eclipse Aviation began as a New Mexico manufacturer of small jet aircraft.  The company filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware on November 25, 2008.  As stated in the Affidavit in Support of Eclipse’s Bankruptcy Motions,  Eclipse began approximately 12 years ago as a manufacturer of aircraft intended for individual pilots, small companies seeking corporate aircraft and air taxi services serving smaller hubs.  In order to produce affordable aircraft, Eclipse created a “manufacturing strategy” based upon low production costs and high volume.

Over time, Eclipse was unable to meet the production goals necessary to sustain a positive cash flow. Eclipse tried to increase production through additional financing and increase its revenue by raising its prices. When neither were s Read more…

| Tags: Actions, Eclipse Aviation, Preference Actions
Posted November 29, 2010 by Brayden Laura under Credit Report

A recent story reported on WalletPop.com tells of a debt collector behaving badly – specifically, it seems, this debt collector actually took to “Facebook stalking” a woman in an attempt to get her to pay her debt.

The woman has reportedly sued the debt collector; her case is interesting in part because it highlights some of the concerns about privacy laws and newer technologies. Here’s a look at the legal issues involved and what kinds of rights the woman has.

The Fair Debt Collection Practices Act

Federal laws that govern how debt collectors can behave prohibit certain types of actions on the part of debt collectors, including:

• Contact by embarrassing media: Traditionally, the example used for this was a postcard, the reasoning being that anyone can read a postcard because it’s not sealed in an envelope. But, depe

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| Tags: Facebook, Facebook Legal
Posted November 27, 2010 by Amelie Hampton under Bankruptcy Articles

The Bankruptcy Court Now Maintains a Privacy Rule

Over the past several years, the Bankruptcy Court began addressing concerns over privacy and identity theft.  As such, we have Bankruptcy Rule 9037 to protect the rights of debtors and other parties.    This statute requires anyone filing documents with the Court to remove or redact certain personal data that can be considered sensitive.   Generally, the following sensitive identity and account information should be modified as indicated:   -           only the last four digits of an individual’s Social Security number or taxpayer identification number -           only the last four digits of a financial account number, and not the entire account number -           only the year of an individual’s birthdate, and not the month or exact date of birth -           only the initials of a minor should be stated when referring to children   The Bankruptcy Attorney Is Responsible for Redacting Sensitive Information   Bankruptcy attorneys have the obligation to carefully review all documents prior to filing to ensure that any sensitive information is redacted.   The Court has become so concerned with ensuring co Read more…

| Tags: Bankruptcy Court, Court
Posted November 26, 2010 by Amelie Hampton under Bankruptcy Articles

LONDON () -  Experian CreditExpert is encouraging Brits to take more control of their personal finances following the admission by millions of Brits that they are heavily dependent on credit. This is according to the latest research by Experian, the global information services company, which released the research as part of Financial Planning Week (22nd – 28th November).

Despite the current economic climate and Government austerity measures, the Experian research highlights some worrying spending habits, with over half (51%) of 18 to 34 year olds describing their spending style as spontaneous, adhering to the motto of ‘If I see something I like, I’ll buy it straight away.’

In order to avoid this ‘creditaholic’ behaviour, it is important for consumers to review their credit report regularly to help them to stay in control of their borrowing. Most importantly, building and maintaining an excellent credit history can help to save money in the future, because the cheapest credit deals are often reserved for customers with the highest credit scores. CreditExpert Read more…

| Tags: Credit, Credit Fund
Posted November 25, 2010 by Imogen Lay under Credit Report