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New policy governing credit reporting criteria.
Credit score can make or break a consumer.
Photo by CafeCredit under CC 2.0
Starting July 1, 2017, the three nationwide consumer reporting agencies, Equifax, Experian and TransUnion, are starting a new policy that will raise about 12 million consumers’ credit scores as much as 10 points. This could mean the difference in qualifying for a better interest rate when financing a vehicle or other cost savings benefits.
The companies are instituting this new policy following a settlement with lawmakers in more than 30 states. Attorneys general alleged liens and civil judgments were often attached to the wrong people, unfairly hurting their ability to access credit for a home, car or gym membership.
After July 1st if a lien or judgment does not match three of the four criteria of name, address, social security number or birthdate, it will no longer appear on a credit report. Many courts have specific requirements before a creditor can record a judgment (many requirements are ignored more than honored). This new policy may bring a focus on the court requirements as related to recorded liens/judgments.
See also: Here’s one thing consumers still don’t understand about their credit scores
Increases in a consumer’s credit score can move them into a more desirable credit category which could mean qualifying for more cards and other forms of credit with lower interest rates.
- Tax liens and civil judgments will remain on credit reports as long as the citation includes the person’s name, address and either the date of birth or the Social Security number. It is anticipated that 40%-50% of tax liens will remain on credit reports.
- Because civil judgments do not generally adhere to these enhanced standards, they will be removed from consumer reports. It is estimated that only about 4% of civil judgments might remain on reports.
- Medical debt that is less than six months old will not be reported beginning Sept. 1.
The Consumer Financial Protection Bureau tracks consumers’ complaints, and one of the most frequent is about incorrect information on credit reports.
The bottom line – don’t take on credit unless you can pay the debt. As a bankruptcy attorney I see the optimistic use of credit the start of a slow downhill slide into financial distress. “Learn to use credit, rather than credit using you”. Diane Drain
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About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys. 
I would be flattered if you connected with me on GOOGLE+
*From Diane: This article/blog is available for educational purposes only and does not provide specific legal advice. By using this information, you agree there is no attorney client relationship between you and me, and that this information should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*
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The post 12 Million Consumer Credit Scores Raised July 1, 2017 appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
Wynn at Law LLC provides estate planning services – wills are one example. ‘Probate’ is a commonly used term in estate planning, especially these days when many clients have an estate worth more than $50,000. First, a bit on probate… then why $50,000 is an important number.
Probate is a court process whereby a will is legally ‘proven’ as the true last testament of the deceased. Essentially, the document is reviewed and validated. It came to be a more common process in the 16thcentury when greedy relatives (or non-relatives) began making phony claims on a dead person’s property. It comes from the same Latin roots as ‘probation.’ In probation, a person has to prove he can live within the law… in probate, a document has to be proven to be authentic and created within the law. Probation and probate have nothing else in common other than the root word, meaning proof.
The ruling of a probate court is the first step in resolving all claims and distributing the deceased person’s property in a will. The court officially designates an executor to carry out the will’s instructions. Usually, the executor is named already when the person made out the will. If a will is contested, it happens in probate court.
What else happens in probate?
· Creditors must be notified and legal notices published.
· Homes/property/other possessions may have to be sold off to pay those debts, or otherwise make distributions evenly to the beneficiaries.
· If there is a lawsuit over the death, or the deceased was party to pending lawsuits, those are noted and settled (if possible).
· Estate taxes, gift taxes or inheritance taxes must be considered if the estate exceeds certain thresholds. Working with an estate planner can minimize these.
Some assets, like life insurance, are not counted because they are transferred directly to the beneficiaries and avoid probate. Death benefits are not included in an estate. Living Trusts – usually created to hold large assets – also are excluded from probate. Joint tenants (e.g. husband and wife) are allowed the joint property in a ‘right of survivorship’ if one dies, and this, too, avoids probate. Bank or investment accounts designated Transfer on Death (TOD) avoid probate as well. Real Estate can also be re-titled to avoid to probate, through tools such as a Transfer on Death Deed (TODD).
Here’s where the $50,000 comes into play. For estates in Wisconsin, after all those subtractions, the small estate threshold is $50,000. If the estate is valued below that and there is a will, probate is avoided. If there is no will, or if the estate is more than $50,000, probate is required. Most probate proceedings in Wisconsin aren’t very onerous. They are informal, with no squabbles between beneficiaries and few creditors. This is little more than an application to the court, followed by a summary judgment. A more formal proceeding requires the court to help distribute assets.
Wynn at Law LLC works with clients to secure their assets in a will or trusts to hold up in probate, or avoid it all together.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Marzky Ragma Jr., used with permission.
The post What exactly is ‘probate’? appeared first on Wynn at Law, LLC.
Wynn at Law LLC provides estate planning services – wills are one example. ‘Probate’ is a commonly used term in estate planning, especially these days when many clients have an estate worth more than $50,000. First, a bit on probate… then why $50,000 is an important number.
Probate is a court process whereby a will is legally ‘proven’ as the true last testament of the deceased. Essentially, the document is reviewed and validated. It came to be a more common process in the 16thcentury when greedy relatives (or non-relatives) began making phony claims on a dead person’s property. It comes from the same Latin roots as ‘probation.’ In probation, a person has to prove he can live within the law… in probate, a document has to be proven to be authentic and created within the law. Probation and probate have nothing else in common other than the root word, meaning proof.
The ruling of a probate court is the first step in resolving all claims and distributing the deceased person’s property in a will. The court officially designates an executor to carry out the will’s instructions. Usually, the executor is named already when the person made out the will. If a will is contested, it happens in probate court.
What else happens in probate?
· Creditors must be notified and legal notices published.
· Homes/property/other possessions may have to be sold off to pay those debts, or otherwise make distributions evenly to the beneficiaries.
· If there is a lawsuit over the death, or the deceased was party to pending lawsuits, those are noted and settled (if possible).
· Estate taxes, gift taxes or inheritance taxes must be considered if the estate exceeds certain thresholds. Working with an estate planner can minimize these.
Some assets, like life insurance, are not counted because they are transferred directly to the beneficiaries and avoid probate. Death benefits are not included in an estate. Living Trusts – usually created to hold large assets – also are excluded from probate. Joint tenants (e.g. husband and wife) are allowed the joint property in a ‘right of survivorship’ if one dies, and this, too, avoids probate. Bank or investment accounts designated Transfer on Death (TOD) avoid probate as well. Real Estate can also be re-titled to avoid to probate, through tools such as a Transfer on Death Deed (TODD).
Here’s where the $50,000 comes into play. For estates in Wisconsin, after all those subtractions, the small estate threshold is $50,000. If the estate is valued below that and there is a will, probate is avoided. If there is no will, or if the estate is more than $50,000, probate is required. Most probate proceedings in Wisconsin aren’t very onerous. They are informal, with no squabbles between beneficiaries and few creditors. This is little more than an application to the court, followed by a summary judgment. A more formal proceeding requires the court to help distribute assets.
Wynn at Law LLC works with clients to secure their assets in a will or trusts to hold up in probate, or avoid it all together.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Marzky Ragma Jr., used with permission.
The post What exactly is ‘probate’? appeared first on Wynn at Law, LLC.
I'm having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants complete google form which dumps event data into google sheet. I'm trying to merge the responses from the sheet into a google … Continue reading →
The post I’m having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants… appeared first on Vonda S. McLeod, Attorney at Law.
I'm having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants complete google form which dumps event data into google sheet. I'm trying to merge the responses from the sheet into a google … Continue reading →
The post I’m having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants… appeared first on Vonda S. McLeod, Attorney at Law.
I'm having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants complete google form which dumps event data into google sheet. I'm trying to merge the responses from the sheet into a google … Continue reading →
The post I’m having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants… appeared first on Vonda S. McLeod, Attorney at Law.
I'm having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants complete google form which dumps event data into google sheet. I'm trying to merge the responses from the sheet into a google … Continue reading →
The post I’m having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants… appeared first on Vonda S. McLeod, Attorney at Law.
I'm having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants complete google form which dumps event data into google sheet. I'm trying to merge the responses from the sheet into a google … Continue reading →
The post I’m having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants… appeared first on Vonda S. McLeod, Attorney at Law.
I'm having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants complete google form which dumps event data into google sheet. I'm trying to merge the responses from the sheet into a google … Continue reading →
The post I’m having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants… appeared first on Vonda S. McLeod, Attorney at Law.
I'm having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants complete google form which dumps event data into google sheet. I'm trying to merge the responses from the sheet into a google … Continue reading →
The post I’m having trouble figuring out how to do a simple thing. Our non-profit rents out our facilities. Applicants… appeared first on Vonda S. McLeod, Attorney at Law.
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