Consumer Credit Issues

19 Mar Suze Orman Recommends Bankrupting Retiree – Without The Benefits

Bankruptcy is a last resort of course. But it is an option. Paying back debt when you barely have enough money to survive is usually a horrible alternative. Unless you are Suze Orman. Ms. Orman styles herself as a financial adviser to every day folks. And Oprah Winfrey has given her a column on the O website. But Ms. Orman sounds more and more like she works for the credit industry, not you. In her March, 2012 on-line column, she posted a Q&A response which makes consumer advocates -- and anyone who actually cares about their elderly family -- scream. The question was asked how to help an 81-year old woman with $8,000 of credit card debt and only $600/mo of Social Security income get out of debt.
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18 Mar Avoid bankruptcy: Just Turn In Your Car, Right?

Bankruptcy isn't something that you think you need to do. After all, you don't owe that much money, or you think you can manage your debts - except for your car. So what to do? You have it all figured out. You are going to voluntarily surrender your car. No need to file bankruptcy. That is going to help a lot, by getting that car off your back. Right? Wrong! A car lender who thinks that they aren't going to get paid wants to get their collateral back as soon as they can, with as much ease and little effort or cost as possible. They don't want to pay a repo man to chase the borrower, so they often make is sound like they are cooperating you, and even helping you. Voluntary surrender is a repossession and is a default of your credit agreement. Repossession is repossession, whether done in the middle of the night by a tow truck, or voluntary turnover by the borrower.
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19 Jan Top Ten Bankruptcy Myths Countdown: #8 Bankruptcy Will Ruin Future Credit

One of the concerns about filing for bankruptcy is that those folks will never be able to obtain credit again after filing for bankruptcy protection and assistance. Most times, nothing could be further from the truth as bankruptcy may actually improve folks' credit score, according to my clients' experiences (and as explained by Smart Money on their website). Every debt collection note on a credit report, every late payment, every negative notation affects a debtor's credit score. Bankruptcy? It doesn't add to the negative credit score;
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lawsuit settlements

13 Nov What do Credit Card Companies Demand for Non-Bankruptcy Settlements?

Credit card debt remains a primary reason that folks call me to ask for a financial problem evaluation issues. Generally bankruptcy constitutes one option but by no means is Chapter 7 or Chapter 13 the only option. Recently I met with a very nice woman who owes around $6,000 in credit card debt, but not much else. After talking to her, we both agreed that bankruptcy did not make sense for this small amount of debt. There is, by the way, no "minimum" amount of debt that would disqualify you from filing bankruptcy but given that the attorney's fee cost of Chapter 7 usually exceeds $1,000 and the attorney's fee cost of Chapter 13 can exceed $3,000, it hardly makes sense to file a bankruptcy if you debt is not significant.
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