discharge Tag

26 Jun Bankruptcy : Why Do I Need To Save My Papers?

You need your bankruptcy papers are a shield against future collection actions for discharged debt. The answer is asimple phrase: "zombie debt". Zombie debt is the phenomenon of old and discharged debt being revived by debt buyers and debt collectors long after the debt has been rendered uncollectible. Check out Zombie Debt Haunts the Discharged and Zombie Debt.

Another reason: refinances or purchases of real estate.

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18 May Filing for Bankruptcy: Can I Be Denied A Discharge?

Creditors believe that bankruptcy was seen as an 'easy out' for too many people and that consumers really could afford to pay their credit cards. In 2005, when the revisions to the bankruptcy code were passed, one new requirement was added to audit cases after the bankruptcy discharge was issued. In rare cases of 'substantial aduse', the auditors can recommend a revocation of the bankruptcy discharge. So the remedy you thought you had could be lost.

In the 18 months since the law became effective, how many cases have had their discharges revoked? Right now statistics are not available, but preliminary reviews of "substantial abuse", that is, filing bankruptcy when there is the ability to pay occurs in less than .64% of cases. That is one case in every 140 filed - a very small number. Prior to the change in the law, estimates were that 25% of all cases filed were fraudulent.

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14 May What Is A Payday Loan?

Apayday loan is a short-term loan designed to provide cash between paychecks. You've seen the signs (typically around military bases) and heard the ads on TV. Easy cash when you need it. A payday loan - but what is it?

While it sounds helpful, the reality is often quite different. Have you ever heard the song, "Sixteen Tons"? A Paydap loan can be forever.

The mechanism puts a deposit in your checking account for the amount of the loan minus some 'fees' and is repaid by direct debit of your checking account when the loan is due. The loans are typically easily renewed and often carry high interest rates because, as the industry claims, the risk of default is high. i have personally seen Annual Percentage Rates as high a 1,575%. While some states have attempted to regulate or outlaw them, a payday loan is only a click away on the internet.

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