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Debt comes with a silent partner – stress. Unless you’re careful, that stress can build to life threatening levels.
We’re told from an early age that we need to get out into the world and make something of ourselves. The subtext is, “go out and make a lot of money so you can buy a big house and a nice car!”
The message is reinforced by commercial messages encouraging us to buy a home, get a new car, and go on fancy vacations.
As if that weren’t enough, our celebrity-obsessed culture encourages us to model our lives on Kim and Kanye, Beyonce and Jay Z, and the rest of the mega-wealthy jetsetters that flood our Facebook streams.
But for most of us, the only way to pay for the car, the home and the vacation is to take on debt. This, on top of the debt we take on to go to college.
That debt creates stress, which breaks us down physically and mentally.
We don’t sleep as restfully. We eat too much or not enough. Our relationships suffer.
We’re at a higher risk of major health issues, including death.
The Debt-Stress Connection
According to a 2007 survey by the American Psychological Association, 73% of respondents said that money and debt were a significant source of stress in their lives. Those who report high levels of debt stress suffer from a range of stress-related illnesses including ulcers, migraines, back pain, anxiety, depression, and heart attacks.
A review by Finnish researchers last year of 33-peer reviewed studies concluded, “indebtedness has serious effects on health.”
That’s why it’s important to spend the time taking care of yourself when you’re working through your debt issues.
Sleepless and Stressed
A story from the Canadian Broadcasting Company examining how debt impacts your stress levels introduces us to Tanya Zerr, a 38 year old who struggled with credit card debt when her husband lost his job. If you’re in debt, you probably know her story because it fits with your own.
According to Zerr:
“I would cry,” Zerr said. “The thing is, it is not something you really talk about. I couldn’t call my friends and say, ‘Oh my goodness, I am so worried about this’.… You keep a lot of that in.”
“It was sleepless nights, a nervous feeling all the time because you’re just worried, Am I going to get that letter, that eviction letter saying we’re going to cancel your mortgage? It’s kind of living in fear, because you just don’t know what is going to be taken away from you.”
Zerr said stress caused her to eat more and put on weight, while her husband wouldn’t eat and lost weight.
Increased Risk of Suicide
It’s one thing to be a tired and grumpy or pack on a few pounds because of your debt problems. It’s something else entirely to lose your life to debt.
Stories out of India, Australia and beyond show the link between overwhelming debt and suicide. The same story plays out time and time again right here in the United States.
53 year-old Carlene Balderrama of Massachusetts killed herself with one of her husband’s hunting rifles just 90 minutes before her home was auctioned off at a foreclosure sale. Her suicide note said she was overwhelmed by her bill problems and wanted her family to use her insurance money to pay off the debt and keep the house.
62-year-old Emilio Saladriagas of New Jersey was so overwhelmed by his bills that he walked into his local Rent-A-Center, poured lighter fluid all over his body and set himself on fire. Thankfully Saladriagas survived the suicide attempt.
Remember to Take Care of Yourself
When you’re struggling to get a handle on your debt problems, it’s important to remember your own physical and mental needs.
Without enough sleep it’s difficult to make important financial decisions. Your nerves are on edge, so communicating with your loved ones becomes tougher as well.
If you don’t eat properly then you don’t give your body and mind the fuel it needs to operate properly.
Burning the midnight oil to get on top of things is fine for the short run, but over time it deprives you of much needed down time.
And if you find yourself with nobody to talk to, reach out to someone you trust. Don’t have to be a therapist or doctor – consider a member of the clergy or even a friend. A shoulder to lean on makes the stress more bearable, and can help you see things more clearly.
Whatever you do, please be sure to take care of yourself. Anything less is not only unhealthy, but also dangerous.
The post Beware Debt’s Silent Partner appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.
The Consumer Financial Protection Bureau (CFPB) released its monthly consumer complaints snapshot. The report spotlights credit reporting complaints. According to the report, the majority of the credit reporting complaints were about problems with incorrect information on the reports. As of August 1, 2015 the Bureau has handled over 677,000 complaints across all products.
“Whether a consumer is trying to get a mortgage, apply for a student loan, or buy a car, credit reports are fundamentally important in allowing people to access their financial goals,” said CFPB Director Richard Cordray. “As we see a rise in the number of consumers complaining about this issue, the Bureau will continue to work to ensure that credit reports are fair, accurate, and readily available to all consumers.”
Credit reporting affects the lives of most Americans. Consumer reporting companies collect information and provide reports on consumers that are used to decide whether consumers are eligible for credit. Credit reports and scores can determine everything from consumer eligibility for credit to the rates consumers pay for credit. Since 2012, the CFPB has supervised the nation’s largest credit reporting agencies which account for nearly 95 percent of the credit reporting market’s annual receipts and which maintain files on more than 200 million consumers. The Bureau has handled approximately 105,000 credit reporting complaints since it began accepting them in October 2012. Some of the findings in the snapshot include:
• Sharp increase in credit reporting complaints: The CFPB saw a 56 percent increase in the number of credit reporting complaints submitted by consumers between June 2015— 4,289 complaints—and July 2015 —6,969 complaints. In analyzing the period of May through July 2015, complaints increased by 45 percent compared to the prior year.
• Consumers complain about incorrect information on credit reports: The majority of credit reporting complaints—77 percent—submitted to the Bureau involve incorrect information on reports. Consumers frequently complain of debts already paid or debts not yet due showing up on their report, negatively affecting their credit scores.
• Consumers complain about trouble accessing reports: Consumers consistently report issues related to accessing their credit reports as a result of rigorous online identity authentication questions. If unable to access the reports over the Internet, consumers have to send copies of sensitive, identifying documents through the mail, which consumers feel is time-consuming and potentially unsecure.
• High-volume complaint companies: Out of all credit reporting complaints submitted to the Bureau between March and May 2015, 97 percent of them involved the three nationwide credit reporting agencies—Equifax, Experian, and Transunion.
Company-level complaint data in the report uses a three-month rolling average of complaints sent by the Bureau to companies for response. This data lags other complaint data in this report by two months to reflect the 60 days companies have to respond to complaints, confirming a commercial relationship with the consumer.
Because of the significance of credit reports, consumer reporting companies have been a major focus for the CFPB. The Bureau has published tips and guidance for how consumers can get and keep a good credit score, which can be found National Complaint Overview
As of August 1, 2015 the CFPB has handled 677,200 complaints nationally. Some of the findings from the statistics being published in this month’s snapshot report include:
• Complaint volume: For July 2015, the most-complained-about financial product or service was debt collection, representing about 31 percent of complaints submitted. Of the 26,704 complaints handled in July, approximately 8,224 of them were about debt collection. The second most-complained-about consumer product was credit reporting, accounting for approximately 6,696 complaints. The third most-complained-about financial product or service was mortgages, accounting for approximately 4,498 complaints.
• Product trends: In a year-to-year comparison, consumer loan complaints, which include pawn loans, title loans, and installment loans, showed the greatest percentage increase—61 percent—from the same time last year. They went from approximately 718 complaints to 1,154 complaints on average per month over a three-month time period. Bank account or services complaints showed the greatest percentage decrease over the same time period, going from a monthly average of 1,976 complaints in 2014 to 1,895 complaints in 2015, a 4 percent decrease.
• State information: Hawaii, Maine, Georgia, and North Carolina experienced the greatest complaint volume increases from the same time last year; with Hawaii up 37 percent, Maine up 36 percent, and both Georgia and North Carolina up by 33 percent. South Dakota, New Mexico, and Alaska experienced the greatest complaint volume decrease from the same time last year, with South Dakota down 31 percent, New Mexico down 16 percent, and Arkansas down 11 percent.
• Most-complained-about companies: The top three companies that received the most complaints from March through May 2015 were Equifax, Experian, and Bank of America. Of the five most-complained-about companies, three of them — Equifax, Experian, and Transunion— are credit reporting companies.
In June 2012, the CFPB launched its Consumer Complaint Database, which is the nation’s largest public collection of consumer financial complaints. When consumers submit a complaint they have the option to share publicly their explanation of what happened. For more individual-level complaint data and to read consumers’ experiences, go to the Consumer Complaint Database
To submit a complaint, consumers can:
• Go online at www.consumerfinance.gov/complaint/
• Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372)
• Fax the CFPB at 1-855-237-2392
• Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244
Additionally, through “Ask CFPB,” consumers can get clear, unbiased answers to their questions at consumerfinance.gov/askcfpb or by calling 1-855-411-CFPB (2372).
The post 6,969 Complaints about Credit Reporting in Just ONE Month (July 2015) appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
For some people, filing for bankruptcy comes only when the money is gone and they’ve got no ability to repay their debts.
But for one entrepreneur and his wife, filing their Chapter 11 bankruptcy petition was a way to keep things going and ensure that everyone got paid.
Craig Walker and his wife, Susan, filed for Chapter 11 bankruptcy in Colorado, estimating their assets at between $100 million and $500 million and liabilities at between $10 million and $50 million.
The Walkers are officers, directors, shareholders or members of several companies, including Integrated Cable Systems Inc. of Longmont and Walker Component Group of Denver, which supplies cables and components used by Vestas Wind Systems’ wind turbines, as well as ranches, two malls, and the banks of Custer Bancorp and First Southwest Bank Corp.
By all accounts, things are in fantastic shape.
This doesn’t sound as if the couple needs to file for bankruptcy, does it? With plenty of money at their disposal and business interests that keep them financially fit, the last thing you’d expect would be a trip to the bankruptcy court.
In fact, according to a report in the Denver Business Journal, the couple said in a federal court filing that they want a federal judge to oversee “an orderly and fair” voluntary Chapter 11 bankruptcy process that will ensure all their creditors, and not just one, are paid in full. Craig Walker’s lawyer said that Walker’s businesses, “should not be impacted by the Chapter 11 filing. The whole point of a Chapter 11 is to continue the operation of the entities.”
So why file for bankruptcy?
The answer is simple. One of Walker’s largest creditors, Wells Fargo & Co., has a court judgment for an unpaid $11 million loan. Walker cosigned the loan, and Wells Fargo is now trying to get him to pay the unpaid balance of $23 million, in spite of the fact that the bank has allegedly already collected $21 million on the judgment.
That’s right – Wells Fargo got a judgment for an unpaid business loan and is now trying to collect more than twice the loan amount from Walker, in spite of the fact that it’s already received $21 million.
Without the oversight of the bankruptcy court, Walker said in a court filing, “the debtors and their creditors (both secured and unsecured) were being subjected to an unorganized and unaccountable private liquidation that preferred only one creditor, Wells Fargo, and was destroying the value of debtors’ assets.”
In other words, filing for bankruptcy was the only way for the Walkers to keep things fair and orderly.
And in allowing the bankruptcy court to oversee things, they have the time and ability to watch over their business interests.
Everybody wins.
Though this case involves far more money than you’ve probably got at stake, it’s interesting to remember that using the bankruptcy system is often a smart way to keep your debt repayment plans orderly and fair to everyone – including you and your family.
The post Why This Successful Business Owner Filed For Bankruptcy appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.
Here at Shenwick & Associates, many of our bankruptcy clients (especially younger ones) have outstanding student loans. Although the Bankruptcy Code doesn't contain an express prohibition against discharging student loans in bankruptcy, the bar to doing so is very high. Most (but not all, as we'll discuss below) appellate courts, follow the standard laid out in Brunner v. New York State Higher Education Services Corp. The debtor must show that: (1) he or she cannot maintain, based on current income and expenses, a minimal standard of living for the debtor and dependents if forced to pay off the student loan; (2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loan; and (3) that he or she has made good faith efforts to repay the loans.
Unfortunately for debtors in New York, Connecticut and Vermont (whose federal courts are under the jurisdiction of the Second Circuit Court of Appeals), the Brunner test remains good law and will do so until either the Second Circuit or the Supreme Court overrules Brunner or Congress amends the Bankruptcy Code. However, in the 28 years since Brunner, the standard has increasingly come under attack. An article in The New York Times last month discussed some of the debtors who have fought to get their loans discharged in bankruptcy and the judges who have dissented from Brunner.
The article focused on two cases from 2013, Krieger v. Educational Credit Management Corp. (In re Krieger) (7th Cir.) and Roth v. Educational Credit Management Corp.(In re Roth) (B.A.P. 9th Cir.). In In re Krieger, the debtor lived in a rural area of Illinois and cared for her elderly mother while unsuccessfully searching for paralegal work for a decade. Despite the slim likelihood the debtor would be able to repay any of her $25,000 student debt, the loan holder argued that she should enroll in an income-based repayment program. In an opinion written by the influential Judge Frank Easterbrook (who was Chief Judge at the time) discharging the debtor's student loan debts, Judge Easterbrook claimed that the Brunner standard was threatening to supersede the "undue hardship" provision of Bankruptcy Code § 523(a)(8)and convert it into a "certainty of hopelessness."
That same month, a similar decision was issued in In re Roth. In this case, the 64 year old debtor had acquired $33,000 of student loan debt (which ballooned to $95,000 in default) acquired years earlier, citing a variety of physical and mental ailments. She successfully discharged her medical debt in bankruptcy, but had to commence an adversary proceeding to prove "undue hardship," copying statutes at a local law library and watching episodes of "Law and Order." The Bankruptcy Appellate Panelheld that "failure to negotiate or accept an alternate payment plan is not dispositive" of a finding of good faith. And in a concurring opinion, Judge Pappas pointed out that both § 523(a)(8) and student loan borrowing have changed since 1987, calling Brunner "a relic of times long gone."
Until Brunner is legislatively or judicially overruled, consider some of these student loan debt strategies, and contact Jim Shenwick for an analysis of your student loan and other debts.
Today’s Delavan real estate buyers are savvier than ever. This is mainly because Millennials are now of home buying age and they are the most internet friendly generation that home buyers have ever encountered. Millennials have grown up with access to infinite information at their fingertips via the internet. They search and review everything online before taking the next steps in the purchasing decision process. They love videos, photographs, and social sharing. Zillow has stated that Millennials will overtake baby boomers as the generation purchasing the largest number of homes this year. This makes their preferences more important than ever.
How can you market your home to Generation Y? Below you will find 4 tips to assist you with selling your home to Millennials.
4 Tips to Sell Your Home in 2015 from our Delavan Real Estate Lawyer
1. Excellent Photographs are Crucial. Gone are the days of a drive-by being the first time a buyer sees your home. Today’s home buyers will see your home for the first time on the internet. If they don’t like what they see online, they will keep searching on the internet until they find a home photograph they do like. Most buyers look at photographs before even reading your home description. If you don’t have outstanding photographs, you are doing it wrong. Here’s what you don’t need: dark photos, no photos, only one photo of the front exterior of your house, photos of messes and clutter, photos with toilet seats up, photos with pets included, and the list goes on. Your real estate agent’s first priority when marketing your home should be excellent photographs that include the home’s exterior (front and back), interior (all rooms), good lighting, no clutter, day and evening photographs (if necessary), and any special features. Many times you will find real estate listings bragging about the great view from the home with not a single photograph of the “great view” mentioned. If you can’t impress buyers online, you’ll never get them in your front door.
2. Conduct Pre-Sale Inspections. Conducting pre-sale inspections will take care of a few issues. First, if you discover any issues with your home during any type of inspection, you can correct the problem or price the home accordingly. Second, you seem upfront and honest to buyers. You have nothing to hide. Third, you are saving buyers time and money on inspections. This speeds up an offer and closing time. Last, you will eliminate the back and forth hassle with buyers regarding price reductions or credits due to faulty equipment, systems, or structure.
3. Choose A Technologically Advanced Real Estate Agent. Millennials are using their smart phones to perform most of their home buying searches. Your real estate agent must have a mobile-friendly website where Millennials can view your home. Apps are their preferred method to check home listings. They also want their questions answered right now. They are the Google generation and are used to receiving information when the need it, immediately. If they stop on your listing and have a question, how quickly can your real estate agent respond? Does your real estate agent’s website have a chat feature? Are they active in social media? Do they have a mobile website? Does the real estate company have an app?
4. Give Buyers Something. Millennials are used to getting freebies. If they ask for an early closing date, let them have it. If they want a home warranty, and you can do it, give it to them. If they ask for credits, supply them. If they want the patio furniture, let them have it. Small gestures go a long way.
Above all, when it comes to selling your home to any generation, put yourself in the buyer’s shoes. Ask yourself these questions: Are these the photographs I would want to see when viewing my home online? Do these photographs of my home make me want to schedule a showing? Do these photographs represent my home in a top-quality manner? As a buyer, what completed inspections would help convince me to purchase a home? When viewing my home for sale on a smart phone, is the listing description, photographs, and contact information legible? How easily is my listing accessed online? How many websites is my home listed on and which ones? How quickly is my real estate agent updating my listing? How quickly is my real estate agent answering questions from potential buyers? (Ask a question online and see how long the response time is.) Is there anything I can include with my home that will help entice an offer, such as included furniture, hot tub, boat, etc.?
Contact Our Delavan Real Estate Lawyer
Are you a seller who needs assistance with your Delavan real estate transaction? Contact our Delavan real estate lawyer. Wynn at Law can assist you with all your legal real estate needs. Schedule an appointment by contacting our Delavan real estate lawyer by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law has offices located in Lake Geneva, Muskego, Salem, and Delavan, Wisconsin.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
Sometimes the most important question about discharging student loans in bankruptcy can be as small as whether you received the check. That’s what Tarra Christoff found when she filed for bankruptcy in Northern California.
In 2002, Tarra Christoff applied to Center for Transformative Learning at Meridian University, a private university in California, with the goal of becoming a psychologist. As part of her financial aid package, the school offered Christoff $6,000 in financial aid to pay a portion of her first year tuition. For the second year, Meridian offered her $5,000 in financial aid. For both years, she signed a promissory note agreeing to repay the funds with interest.
Christoff made a few payments after she left Meridian, then fell behind. Ultimately, the matter was submitted to arbitration and Tarra was ordered to repay the unpaid balance due plus interest.
Had this been Christoff’s only debt then there’s a good chance she would have made payment arrangements to handle the loans. Unfortunately, the debts to Meridian were a tiny portion of what ultimately came to well over $200,000 in debt. Finally, she made the decision in 2013 to file for bankruptcy.
To wipe out student loans in bankruptcy, Christoff would ordinarily have filed an adversary proceeding – a lawsuit against the student loan creditor in bankruptcy court seeking a discharge of the debt. But that didn’t happen here because her lawyer recognized one thing the university did not.
The student loan wasn’t one of the kinds that couldn’t be wiped out under the bankruptcy laws.
Meridian, seeing that there might be a problem later on, decided to look to the bankruptcy court for a determination that the loan wasn’t going to be wiped out in bankruptcy.
The judge, after looking at the loan as well as the bankruptcy law, held that the loan would be discharged once Christoff got to the end of her bankruptcy case.
Meridian appealed the decision, and the appellate court agreed with the bankruptcy judge.
Once she received her discharge in bankruptcy, the student loan would be wiped out in spite of the fact that Christoff hadn’t made any showing of undue hardship.
Why made this loan so special?
Under the bankruptcy laws, a private student loan can’t be discharged unless there’s a showing that repaying that loan would cause an undue hardship. But that provision of of the law doesn’t apply when a borrower doesn’t receive any funds, but only agrees with the school to pay the tuition at a later date.
The question isn’t one of whether a loan was made, according to the bankruptcy court. Rather, the borrower must receive actual funds.
The logic applies only for private student loans – the portion of the bankruptcy law that governs federal student loans doesn’t hinge on receipt of actual funds.
The decision seems to reflect the growing sense on the part of bankruptcy court judges to try to find ways to help student loan borrowers. The courts have become increasingly frustrated with a bankruptcy system that forces people to prove that their situation is nearly hopeless before allowing the discharge of student loan debt. To combat the unfairness of the law, some judges have started actively looking for way around the problem.
In order to allow them to keep chipping away at the rules, however, bankruptcy lawyers and student loan borrowers need to keep carefully looking at their debts. Review the paperwork, including the actual check issued by the lender, to make sure everything complies with federal and state laws.
Get a student loan lawyer involved, as Christoff did; thankfully, her attorney is a fellow graduate of The Student Loan Law Workshop and has a deeper understanding of these issues than might otherwise be the case.
If you’ve got a strong enough argument in your favor, bring it to your bankruptcy court and be prepared to fight hard for every penny of relief. You may not win the case, but at least you’ll be able to say that you tried.
And as we all know, you can’t win unless you try.
Click here for a copy of the court opinion.
The post California Woman Wipes Out School Debt in Bankruptcy appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.
Some time ago you filed a bankruptcy and received a discharge. You owned a home at the time your bankruptcy was filed and have continued paying on the mortgage. Now you are trying to a refinance of your mortgage but are told that “because you did not reaffirm your mortgage during the bankruptcy your credit report does not show any payments”. There are two issues going on here.
First, by filing for bankruptcy your obligation to pay most debts, such as your mortgage, was discharged (meaning that the creditor cannot force you to pay the debt). Of course, if you want to keep your home you need to pay the mortgage. The mortgage lender will probably report your mortgage as “discharged in bankruptcy”. The mortgage lender may also choose not to report any payments make after your bankruptcy was filed. You ask your mortgage lender to report your post-bankruptcy payments, but they refuse because the “debt was discharged in bankruptcy”. They are correct, the debt was discharged in bankruptcy and The Fair Credit Reporting Act (FCRA) does not require creditors to report to the credit reporting agencies. Therefore, the mortgage lender is not required to report that you are still making payments.
Second, you want to refinance your mortgage. Your credit report does not reflect any payments made since the filing of the bankruptcy so your credit score is not increasing as quickly as you like. Logically you should be able to go to your current lender and refinance with them; after all they know you have been making payments. Right? Most likely they will tell you they cannot refinance because you did not sign a reaffirmation agreement during your bankruptcy. That reaffirmation agreement is a new contract and would bind you to the same terms that existed before filing your bankruptcy. The person at the mortgage company is telling you that “your attorney screwed up by not having you sign a reaffirmation agreements”. This is not accurate for many reasons – 1) the lender did not prepare a reaffirmation agreement, 2) your attorney was looking out for you because the law of the state where you live makes you personally responsibility for the reaffirmed mortgage debt, or 3) the bankruptcy judge will not sign a reaffirmation agreement on residential property.*
I am not ignoring the importance of a good credit rating, especially after bankruptcy. If you continue making payments on your home or vehicle you should get the benefit of those timely payments reflected in your credit reports. Here is where you have to do the work yourself. First, keep excellent records that prove you made all your mortgage payments on time. Have copies of the payments, along with the date that the payment was negotiated by the lender. Second, you should ask the creditor for proof of payments – pursuant to the federal Truth in Lending Act the creditor is required to provide that proof. Armed with that proof file a dispute with the credit reporting agency stating that all payments are made timely. You may be able to attach proof of those payments, but need to check with each credit reporting agency to find out the process. Look at the web site for the Federal Trade Commission for additional information.
Lastly, you can go to another lender to refinance your home. Just plan ahead and have the prior proof of payments ready for a potential new lender. I know this is a challenge, but remember there was a reason you filed for bankruptcy. Take solace in the relief you already received from a well-planned bankruptcy and start to plan for your future.
*I could spend an entire post just explaining each of the three reasons, but choose to focus on one topic in this post.
The post Trying to Refinance a Home Loan After Bankruptcy appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
In this excerpt from Legal Action, Attorney David M. Siegel talks about the creation of the automatic stay in bankruptcy. Some debts are eliminated whereas others are not. It all depends upon the type of debt and the type of bankruptcy. Interviewer: What happens if I’ve got a garnishment or a threat of garnishment or+ Read More
The post Bankruptcy & The Automatic Stay appeared first on David M. Siegel.
It seems like a lot of people are shocked to learn that they have been sued or that judgments have been registered against them. I remember speaking to a new client recently and it was unclear how much she owed and from what she was saying her total debts were less than $5,000, an amount clearly not worth filing bankruptcy over. While we were talking I checked the Nebraska court’s online records to see if any judgments were filed against her, and to her great surprise a $30,000 judgment lien had been filed against her residence! Needless to say, she and her hubby had a fun chat that evening.
When debt problems get bad, sometimes we stop opening the mail. People move from town to town seeking better jobs, housing or schools, and it is common for creditors to serve notice of lawsuits on former addresses. One client was shocked when I informed her a judgment had been issued against her after the Sheriff served notice on her 10-year old daughter who forgot to give her mother the paperwork when she arrived home for work. Clients commonly have no clue who they owe or if they have been sued, but they have a nagging sense they owe a lot and they need help. Figuring out who you owe and how much you owe is the first step in crafting a plan to get out of debt.
A new system developed by the Nebraska Court Administrators office allows anyone to search for lawsuits and judgments online for a small fee (currently set at $15). Here is the link to the Nebraska Justice Search system. This same information is generally available at the local county courthouse for free.
How do I pay a judgment I find online?
If you discover that you owe a judgment, there are several ways to pay it.
- Pay Online: Another new service offered by the courts is to pay the judgment or fine online by going to this link. Payment can be made by credit cards, debit cards or with e-checks.
- Pay the Clerk of the Court: Don’t like sending money over the internet? No problem, just send a check or money order to the Clerk of the Court. Many courts also accept cash payments made in person. To find out how much you owe on the judgment, including interest, call the Clerk of the Court. Here is a link to each County Court Clerk in Nebraska.
- Pay the Creditor’s Attorney: Sometimes you cannot pay the full balance all at once or perhaps you want to negotiate the balance owed. The court record will have the name and phone number of the attorney who sued you. Call them and make payment arrangements if necessary. Remember that when you send payment to their attorney you are also giving them information about where you bank or work, and unless you are paying the balance in full you are giving them clues as to where to send a garnishment. Be careful in what you share with the creditor’s attorney. Email seems to be a great way to bypass the secretary to negotiate directly the attorney. Here is the link to get the email address of the creditor’s attorney. Remember that you should never send money to a creditor when negotiating a debt until they send you something in writing agreeing to the settlement.
If a judgment has been entered against you it is important to get a Satisfaction of Judgment filed in the court record after payment. Once the judgment is paid or settled, you want the public records to show the debt is satisfied so that you may update your credit report.
Image courtesy of Flickr and lemonjenny.
We have all heard, and perhaps felt, there is a foreclosure crisis. We hear the stories about banks misusing their power to misdirect homeowners into default or fail to assist them even if required by the federal government. What we don’t hear about are the abandoned pets left to fend for themselves after their owners have lost their homes. That thought makes me angry, sad and wanting to bring back corporal punishment. Alright, I realize this might be slightly over reacting, but that comes from my heart.
Of course there are other reasons why pets are abandoned, such as death of the owner. Take heart – there is a group looking out for these abandoned waifs. It is called Lost Our Home. Their vision:
Our mission is to ensure that all pets have loving homes when families face major life challenges. We provide compassionate options when Realtors and the community find an abandoned pet.
Our vision is a world in which all pets have loving homes
and are treated with dignity and respect.
Check out their web site and see how you can help.
The post Pets Abandoned When Owners Lose Their Homes – Help Available appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.