Personal Finance

28 May Received Pre-Approved Credit Card? Do You Really Want It?

    Yesterday, my clients and I were meeting to sign their Chapter 13 Bankruptcy Documents for filing, when the client pulled out his just received in the mail Pre-Approved Credit Card Letter. Dear Mr. _______: "Your good standing has been found creditworthy by _______ Visa and that qualifies you for a new Visa credit card." My first thought was: Are you kidding me? Believe me, I could write an entire blog on the wonderful benefits of this piece of plastic. Note the sarcasm. I recently posted a video about which secured credit card would be the best to acquire after a person files for bankruptcy. The reasoning behind this video was simple. I wanted consumers to know that after they file for bankruptcy the secured credit card solicitations will begin to come fast and furious. Now, it seems like the credit card solicitation has been taken to an entirely new level.
Read More

23 Apr Bankruptcy Basics: After Bankruptcy, Learning to Budget Means Financial Freedom

Often when I finish talking to a potential client about bankruptcy, the person will ask: "How will my credit score be affected? Will I be able to purchase anything on credit again EVER?" I tell them it is up to them how their credit score is rebuilt after a bankruptcy. My clients receive a information packet at the end of their case which offers suggestions for rebuilding credit. Also, in that packet is a list of websites
Read More

07 Apr Amish View On Bankruptcy

[caption id="attachment_19662" align="alignleft" width="300" caption="No Sunday business."]Amish and Bankruptcy[/caption] Recently I had the pleasure of spending several weekends with an Elder of a Missouri Amish community. During these two weekends many hours were spent discussing the Amish way of life and various viewpoints including finances and debt. The Amish community believe in a simple way of life. Simple meaning a conservative or non-cluttered way of life. The manner of dress is plain and geared more towards a practical nature as opposed to impressing one another. Their homes are modest nature and only contain the necessities of living. Hard work, attention to detail and knowledge are encouraged. The experience had a profound effect on me and how I look at my own spending.
Read More

22 Mar Oregon Attorney Disciplined Due To FDCPA Violations

An Oregon attorney, Derrick McGavic is being disciplined for FDCPA violations as announced by theOregon Attorney General's Office this week. Derrick McGavic, a Eugene, Oregon attorney whose law firm sued consumers for credit card companies and debt collectors, agreed to submit his resignation to the Oregon State Bar. In addition, McGavic & Finney, P.C., the law firm under which McGavic practiced, is to be closed with McGavic's partner, Kristan Finney, allowed to continue to practice, but with restrictions under a stipulated agreement with the Oregon AG's office. McGavic will also pay a $70,000.00 fine.
Read More

12 Feb Tell A Debt Collector Where To Put It

This past week, I had a consultation with a frantic debtor who really did not want to file bankruptcy. She was facing a garnishment of her wages and did not understand the garnishment. Back in 2003, a debt collector had sued her and obtained a judgment for approximately $1100.00. No payments were made from 2003 to 2007. However, in January 2008, the debt collector discovered where she worked and sent a writ of garnishment to her employer. Since under the law, a debt collector may seize 25% of wages, this garnishment meant a serious reduction in income. The debtor contacted the debt collector and negotiated a lower payment to be made, out of each paycheck through a voluntary wage assignment. After costs and interest had been added in, the judgment amount was $2045.00. No written wage assignment was provided to the payroll department; the employee just directed payment to the debt collector.
Read More