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Using credit after bankruptcy is the best way to rebuild credit after bankruptcy. If you do want to join the financial mainstream, opening up lines of credit after bankruptcy discharge and paying them off every month in full is probably the best way to have a great credit score in as little as eighteen months after filing.
Phillip Tirone, the expert who advises most of our clients regarding credit matters after filing, advises them to not be concerned so much about the fact that they have filed bankruptcy. There is no legal way to have it removed from your credit score (just as there is no legal way for your debts to legally return). The good news is that it ultimately doesn’t matter because the credit scoring bureaus are far more concerned with your recent behavior that your past behavior.
The idea then, is to persuade the bureaus to pay more attention to your recent laudable credit behavior than to your pre-bankruptcy behavior. To that end, Tirone advises out clients to open three new credit cards after discharge and one installment loan.
With respect to the credit cards, keep them active by using them only every other month, make only small charges, maybe ten percent of your limit, and pay them off in full every month.
These cards should be taken out pretty quickly after discharge. The credit-scoring bureaus respond best to accounts that have been open for long periods of time. Your future credit score will benefit best if you open the accounts now. So no more moving balances from card to card and no more carrying balances at all.
With respect to the installment loan shortly after discharge, try and avoid taking out a car loan. You are going to get locked into a high interest loan and you are going to add a large balance of debt to your credit report. Far better would be an appliance, tire or furniture loan that can be paid off in six months.
Remember that this is no time to be even one day late on anything, this is your chance to build something new and good. Bankruptcy is truly a fresh start and its value needs to be maximized.
If you want to build up a great score after bankruptcy, you really need to commit to paying your credit bills immediately every single month.
If you need help rebuilding your credit after bankruptcy, please contact me as soon as you can, we offer this service for free to all our Oregon and Washington bankruptcy clients for free so please take advantage of it.
The original post is titled Tips for Increasing Your Credit Score in the Wake of Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Personal property of $l,000.00 and $4,000.00 value
Each debtor may "exempt" (i.e. keep) $l,000.00 of personal property ($2,000.00 for a joint case) from the bankruptcy estate. Also another statute allows each debtor to “exempt” $4,000.00 ($8,000.00 for a joint case) of personal property if one does not claim or receive the benefits of a Florida homestead exemption. The valuation of the property is generally based on its liquidation value or "garage sale" value.
Cars and other Motor Vehicles
In addition to the above general personal property exemption, $l,000.00 in equity ($2,000.00 for a joint case), in one car (two for a joint case) or other motor vehicle (such as a motorcycle, truck, trailer, semi-trailer, truck tractor, semi-trailer combination, recreational vehicle, etc.) is "exempt" from the bankruptcy estate. Often this is not even used as many vehicles have no net value (equity) as more is owed on them than they are worth (i.e. you are "upside down"). During and after the bankruptcy, you must, of course, continue to make any payment due for a lien on the vehicle.
Pension Plans, IRAs, and other Retirement Plans
Pension plans, I.R.A.'s, and other retirement plans are generally not part of the estate or may be exempted from the estate (including under the exemption provided in the Bankruptcy Code itself 522 (b)(3)(C)) .
Prescribed Health Aids
Any professionally prescribed health aids may generally be exempted from the bankruptcy estate.
Earned Income Credit Refund
An interest in an IRS earned income credit ("EIC") whether received or yet to be received is exempt. It also applies to funds in a bank account traceable to such EIC. This exemption does not apply to collection for child support or spousal support. Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055
Personal property of $l,000.00 and $4,000.00 value
Each debtor may "exempt" (i.e. keep) $l,000.00 of personal property ($2,000.00 for a joint case) from the bankruptcy estate. Also another statute allows each debtor to “exempt” $4,000.00 ($8,000.00 for a joint case) of personal property if one does not claim or receive the benefits of a Florida homestead exemption. The valuation of the property is generally based on its liquidation value or "garage sale" value.
Cars and other Motor Vehicles
In addition to the above general personal property exemption, $l,000.00 in equity ($2,000.00 for a joint case), in one car (two for a joint case) or other motor vehicle (such as a motorcycle, truck, trailer, semi-trailer, truck tractor, semi-trailer combination, recreational vehicle, etc.) is "exempt" from the bankruptcy estate. Often this is not even used as many vehicles have no net value (equity) as more is owed on them than they are worth (i.e. you are "upside down"). During and after the bankruptcy, you must, of course, continue to make any payment due for a lien on the vehicle.
Pension Plans, IRAs, and other Retirement Plans
Pension plans, I.R.A.'s, and other retirement plans are generally not part of the estate or may be exempted from the estate (including under the exemption provided in the Bankruptcy Code itself 522 (b)(3)(C)) .
Earned Income Credit Refund
An interest in an IRS earned income credit ("EIC") whether received or yet to be received is exempt. It also applies to funds in a bank account traceable to such EIC. This exemption does not apply to collection for child support or spousal support. Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055
Personal property of $l,000.00 and $4,000.00 value
Each debtor may "exempt" (i.e. keep) $l,000.00 of personal property ($2,000.00 for a joint case) from the bankruptcy estate. Also another statute allows each debtor to “exempt” $4,000.00 ($8,000.00 for a joint case) of personal property if one does not claim or receive the benefits of a Florida homestead exemption. The valuation of the property is generally based on its liquidation value or "garage sale" value.
Cars and other Motor Vehicles
In addition to the above general personal property exemption, $l,000.00 in equity ($2,000.00 for a joint case), in one car (two for a joint case) or other motor vehicle (such as a motorcycle, truck, trailer, semi-trailer, truck tractor, semi-trailer combination, recreational vehicle, etc.) is "exempt" from the bankruptcy estate. Often this is not even used as many vehicles have no net value (equity) as more is owed on them than they are worth (i.e. you are "upside down"). During and after the bankruptcy, you must, of course, continue to make any payment due for a lien on the vehicle.
Pension Plans, IRAs, and other Retirement Plans
Pension plans, I.R.A.'s, and other retirement plans are generally not part of the estate or may be exempted from the estate (including under the exemption provided in the Bankruptcy Code itself 522 (b)(3)(C)) .
Earned Income Credit Refund
An interest in an IRS earned income credit ("EIC") whether received or yet to be received is exempt. It also applies to funds in a bank account traceable to such EIC. This exemption does not apply to collection for child support or spousal support. Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Automatic Stay Upon the filing of your bankruptcy case, you are immediately protected from most collection actions against you and your property. The automatic stay is an injunction against the involved creditors from proceeding wit heir collection actions.
Exceptions to the Automatic Stay
The following are some of the items that are not automatically stayed by the filing of your bankruptcy case: criminal cases, certain actions regarding alimony, maintenance or support, and governmental police or regulatory actions.
Creditors Meeting
About 6 weeks after your bankruptcy case is filed, you must attend the "creditors' meeting" (34l meeting) at the Federal Building. This is generally just a short meeting with your bankruptcy trustee and any creditors who choose to attend. In most cases, no creditors bother to attend. Your Bankruptcy Judge will not attend.
You must bring your original social security card, driver’s license, and proof of payment of your chapter 13 plan payments.
Length of Chapter 13 Plan Chapter 13 plan are usually for a period of 3 to 5 years. This length of the plan depends of various factors, including your income, the amount of your non-exempt property, and what you are trying to achieve in chapter 13 plan.
Discharge OrderAfter you complete your chapter 13 plan, the trustee will issue a report of your plan completion. Shortly thereafter, your chapter 13 discharge will be entered and your case closed.
Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055
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Filing of the Case - Automatic Stay Upon the filing of your bankruptcy case, you are immediately protected from most collection actions against you and your property. The automatic stay is an injunction against thereditors from proceeding wit heir collection actions.
Creditors MeetingAbout 6 weeks after the bankruptcy case is filed, a "creditors' meeting" (34l meeting) is held. This is normally just a short meeting among you, your bankruptcy lawyer, the bankruptcy trustee, and any creditors who choose to attend. In most cases, no creditors bother to attend.
Length of Chapter 13 Plan Chapter 13 plan are usually for a period of 3 to 5 years. This length of the plan depends on various facts, including, whether your income is below or above median income, the amount of your non-exempt property, and what you are trying to achieve in chapter 13 plan.
Discharge OrderAfter you complete your chapter 13 plan, the trustee will issue a report of your plan completion. Shortly thereafter, your chapter 13 discharge will be entered and your case closed.Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055
Filing of the Case - Automatic Stay Upon the filing of your bankruptcy case, you are immediately protected from most collection actions against you and your property. The automatic stay is an injunction against thereditors from proceeding wit heir collection actions.
Creditors MeetingAbout 6 weeks after the bankruptcy case is filed, a "creditors' meeting" (34l meeting) is held. This is normally just a short meeting among you, your bankruptcy lawyer, the bankruptcy trustee, and any creditors who choose to attend. In most cases, no creditors bother to attend.
Length of Chapter 13 Plan Chapter 13 plan are usually for a period of 3 to 5 years. This length of the plan depends on various facts, including, whether your income is below or above median income, the amount of your non-exempt property, and what you are trying to achieve in chapter 13 plan.
Discharge OrderAfter you complete your chapter 13 plan, the trustee will issue a report of your plan completion. Shortly thereafter, your chapter 13 discharge will be entered and your case closed.Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055
Setting aside the issue of actually discharging student loan debts in bankruptcy, many Oregon and Washington prospective bankruptcy filers wonder what exactly is going to happen to their student loans after the bankruptcy has been filed. The answer really depends on what kind of bankruptcy has been filed and the form of the student loan.
If you have Federal student loans, nothing really happens during the bankruptcy. Pursuant to the Higher Education Act, FSLs are placed into a sort of bankruptcy forbearance. This is to say that all collection activity must end. You won’t get any monthly statements, calls or any other reminder that your payment is due. The benefit of not having to make a student loan payment for either a three month period during a Chapter 7 Bankruptcy or as much as five years during a Chapter 13 Bankruptcy is huge. It is going to outweigh the negatives for just about everyone, especially Oregon and Washington consumers who are barely getting by, often facing harassment, judgments and garnishment as they struggle with student loan burdens.
If you have a co-signer on your student loan who is struggling along with you to make the payments, the filing of a Chapter 13 Bankruptcy will be helpful. Upon the filing of a Chapter 13 Bankruptcy, the co-debtor stay provisions bar the lender from going after the non-filing borrower during the three to five year pendency of the Chapter 13 Bankruptcy case. Your Chapter 13 Bankruptcy may provide your co-signer the same relief that you need with respect to your student loan.
Here’s the downside. First if you are in the midst of rehabilitating a federal student loan default, once you you file bankruptcy, your payments may no longer be accepted and you will have to renew your efforts to rehabilitate the loan at the close of your bankruptcy.
Private student loans present much greater problems in bankruptcy. Many PSL notes contain a bankruptcy default provisions. This means if you file bankruptcy, your loan defaults. For many filers this is no big deal. After all you probably were already in default. However, if you have a co-signer this is a big deal because if the loan contains bankruptcy default provisions, the filing defaults the loan, even if the non-filing co-signer was making all the payments on time.
Our firm will be expanding our practice areas to beyond bankruptcy and debt defense in July to include a focus on Student Loan law. Our aim is to help Washington and Oregon consumers cope with their student loan burdens. We look forward to the challenge.
The original post is titled Student Loans and Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Quit Title Action Dismissed A recent case dealt with the issue of whether a mortgage lender is bared from foreclosing on property due to the passage of more than five years since the first payment default due to the Florida statute of limitation and also whether the dismissal of a first foreclosure action with or without prejudice bars a second case for foreclosure? Although the facts and ruling in each case may be different, the federal District Court's held in 2013 in the case of Kaan v. Wells Fargo Bank, N.A., 2013 WL 5944075 (SD Fla. 2013) that such a second foreclosure action is not bared if the second foreclosure action is based on payment default different than those in the first foreclosure case and the new defaulted payments are within five years at the time of the filing of the second foreclosure action. The Court in Kaan based its ruling on the Florida Supreme Court's ruling in Singleton v. Greymar Assoc., 882 So. 2d 1004 (Fla. 2004).
The Court in Kaan dismissed the homeowner's quiet title action pursuant to Fed. R. Civ. Pro. 12(b)(6), holding that in this case, as a "matter of law", the homeowner could not state a claim based on plausible facts "actual, apparent, or potential", that his title to the land was at issue or showing that a cloud on the title to his home existed. The Court held that the homeowner could not state such a claim as despite the dismissal of the first foreclosure action, as the mortgage note and mortgage remained a valid and enforceable lien against the homeowner's property. The Court further stated that even if the statute of limitations barred foreclosure based on certain payment defaults, the mortgage lien would still be enforceable and a foreclosure action could be pursued based on breaches or defaults in duties other than the payment requirements.(305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases and Mortgage Modifications
Quiet Title Action Dismissed A recent case dealt with the issue of whether a mortgage remained enforceable after a the dismissal of the foreclosure case and more than five years has passed from the date of the first default in mortgage payments. The homeowner argued that the five year Florida statute of limitations applied to render the mortgage no longer enforceable.
In agreement with a number of recent decisions, the District Court in the case of Kaan v. Wells Fargo Bank, N.A., 2013 WL 5944075 (SD Fla. 2013) held that after the dismissal of a foreclosure case, with or without prejudice, a mortgage remains a valid and enforceable lien on the property and a lender is not barredfrom filing a second foreclosure action if the second foreclosure action is based on payment defaults different from and subsequent to those that formed the basis for the first foreclosure case. As have other courts recently, the Court based its ruling on the Florida Supreme Court's decision in Singleton v. Greymar Assoc., 882 So. 2d 1004 (Fla. 2004).
The Court dismissed the homeowner's "quiet title" action in which he sought to obtain a court order determining that the mortgage was no longer enforceable after the dismissal of the foreclosure case as more than the fiver year period had passed. The Court dismissed the homeowner's quiet title action pursuant to Fed. R. Civ. Pro. 12(b)(6), holding that as a "matter of law," the homeowner could not state a claim based on plausible facts "actual, apparent, or potential", that his title to the land was at issue or show that a cloud on the title to his home existed as despite the dismissal of the foreclosure case and the passage of five years since his first default in payment, the mortgage note remained valid and the mortgage remained a valid and enforceable lien against the property.Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055
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