Credit and Bankruptcy

Effects of Bankruptcy on Credit

Call: 888-297-6203 People filing for bankruptcy are often scared about the effects of it on their loved ones. Debtors often believe that their credit gets merged with their spouse’s credit or that the liability of their debts will fall on their children in case they are still remaining at the time of death. Such rumors are untrue and misleading. Firstly, the credit scores of the spouses are independent of each other. The credit score of one partner might be extremely good while the other’s may not. Sometimes, one spouse owes all the unsecured debts while the other has [...]


Can Being A Co-Signer Or Co-Debtor Be Harmful For You?

Call: 888-297-6203 If you do not have a good credit score, getting mortgage or automobile loan might be difficult unless you have a co-signer for your loan who has a good credit score. However, a co-signer is equally liable for the debt as is the primary debtor, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group. This can be detrimental for the co-signer, especially if the debtor ends up filing for bankruptcy. This occurs in case of job loss or divorce. In case, the co-signer is the spouse, they will be required to pay for [...]


Bankruptcy – The Public Record Which Appears on Your Credit Report

Call: 888-297-6203 Earlier three types of public records were reported on the credit report of any individual, however, now just one – bankruptcy is reported in the credit history. Bankruptcy is generally the last resort for people who have tried in vain to get rid of their debts. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, elaborate that different bankruptcy chapters can have different repercussions on your credit history. In Chapter 7, the filer does not pay any debts; any non-exempt property they have is sold off to pay their creditors. This type of bankruptcy [...]


Is it Possible to Get Credit Card after Bankruptcy?

One of the ill effects of filing for bankruptcy is that it becomes public record and appears on your credit report. This makes it difficult for people who have recently got bankruptcy discharged to get any credit. According to Dallas based bankruptcy law firm Recovery Law Group, this is a major concern for most people. Though you might get credit, it will be at terms which will be outrightly ridiculous like high-interest rate, larger down payments (in case of a mortgage), etc. Unfortunately, you might have to wait for some time to qualify for a new credit card [...]


What Are the Possible Ways to Settle a Credit Card Judgment?

There are enough cases of credit card debts in Los Angeles. People have a surmounting amount to be paid as credit card loans. Most of these credit card loans are unsecured loans; which means the creditors cannot seize credit card owners’ assets if he/she fails to pay the loans. However, the creditor can take rescue and file a case against the debtor. Once he gets a judgment against the debtor, he can propel the debtor to respond in court and take steps to seize the debtor’s assets. For good advice on how to settle a credit card judgement, [...]


Can Credit Cards be Secured Loans?

Credit card loans always relate to unsecured loans by default. That’s what most of us are used to hearing. However, there can be circumstances when credit card loan can be a secured one too. The basic distinction between secured and unsecured loan is that there is a lien or an asset attached as collateral for the lender to capitalize in order to recover the debt. This holds good only if the debtor defaults or misses payments due consistently. To learn more about loans, bankruptcy, and other financial information, log on to Recovery Law Group, the encyclopedia to address [...]


Credit Cards, Bankruptcy, and Court wars

Credit card is the most common unsecured debt in today’s world. As per one of the reports published during late 2017, an average credit card holder could have a yearly debt of $18,000-20,000. The interest rate of credit cards is really high, and it could even breach 30% in certain scenarios. The bankruptcy laws however beneficially help in scrapping the credit card dues as they are part of unsecured dues while you are struggling to keep up with basic needs and priority debts. But it might not be as easy as said, the lender (credit card company) and [...]


Read the Fine Print on Credit Cards and Avoid Going Bankrupt!

Often people take debts to meet their financial requirements. These debts can be either secured ones (where a property is kept as collateral) such as a home loan or car loans; or unsecured like credit cards, etc. Since most credit card debts do not have any property which can be claimed in case you don’t pay, they can be discharged during bankruptcy. However, sometimes, some fine print on the card can make them secured without you having any knowledge of this. In such cases, these debts will not be discharged during bankruptcy. It is therefore important to be [...]


Increase in Bankruptcy Filings Among Retirees

It is rather a sad state of affairs that Los Angeles is one of the cities that has an increase in the number of bankruptcy filings from the citizens who are above 55 years of age. This number has only doubled since 1994. Despite the need to rest after years of employment, the country witnesses this stupendous rise of close to twenty percent of the total bankruptcy filings to be of the retirees. But professionals say that it isn’t surprising – the failure of the individuals (close to 32%) in setting aside a retirement amount is the major [...]


Paying off debts Vs Bankruptcy

Most debtors see paying off debts as a moral duty compared to filing for bankruptcy. When you contact a financial professional, they do cover the aspects of spending within your income range along with simultaneously building a safety fund. Most citizens find themselves in circumstances where they keep paying off their debts and ignore putting aside a part of their money for retirement. This negligence ends up costing more, not only for the individual but also for society at large owing to the minimal or zero investment from the debtor towards the economy. Solution – Chapter 7 bankruptcy [...]

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