Month: May 2021

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The website you need while in bankruptcy…

If you are in a Chapter 13 bankruptcy, you need to set up an account on www.ndc.org. This website pulls information from the Chapter 13 Trustee, and keeps you updated on money going in, money going out, and gives you a general idea of what is going on. It doesn’t provide legal information, because that comes from your attorney. It also doesn’t have every single thing on there, so you can’t really add up columns to figure out how much you have left to pay. Again, you will need to contact your attorney for that information. I do, however, recommend that you check in on this website at least monthly to make sure your payments are actually getting to the trustee’s office. More times than I can count, employers have really messed up, or the USPS lost a money order, and ultimately, it’s up to you to make sure money shows up. This is the best way to make sure your payments are getting where they should go. If you identify a problem, let your attorney know immediately so that you can together form a plan of attack and get you back on track. Your attorney is on your team and knows how to help.

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Is your bankruptcy case almost over?

Are you getting close to the end of your bankruptcy? If so, go ahead and contact your attorney to see if you need to do anything. In Chapter 13 cases, you will need to sign a “Request for Discharge” at the end of your case. Generally our Chapter 13 Trustee will send out a notice when it is time to file that document.

For both Chapter 7 and Chapter 13, you have to complete a 2 hour credit counseling class before your case can be discharged. If you are not sure if you did that, check with your attorney. Many people will do that class right after their case is filed.

Remember that some things don’t go away in your bankruptcy. Things like taxes, student loans, and child support orders don’t go away. If you aren’t sure if something is going away, ask your attorney.

Congrats on getting through your bankruptcy and finishing!

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Some things to think about to increase your credit score AFTER your bankruptcy case is over

While you can’t do too much during your bankruptcy case to actively increase your credit score, there are things you can do after your case is over to help.

One thing is you can get a secured credit card. This is basically like a prepaid debit card where you have to pay for it before you can use it. This helps you not overspend and end up back in bankruptcy. The very first question to ask the card issuer is whether they report to the credit reporting agencies. If they do not, then move on because it will not help you. You can set up a totally separate bank account and have your employer direct deposit a certain amount each paycheck into that account, and then have the card autopay from that bank account. Then use that card to pay something that stays the same each month like your Netflix or Hulu or phone bill. That way you don’t have to worry about the amount changing.

Another thing you can do is get a card specifically for something like gas, and only gas. Again, be sure first that the card issuer will report to the credit reporting agencies or this is not helpful. Then use that card each time you buy your gas, and you don’t buy anything else on it. You are really only looking to make regular charges and regular payments, and NOT carry a balance. You need to pay this off each month. Some people prefer to make a card payment right after they make a charge. Other people will just transfer the money to cover the charge to a separate account and wait on the monthly bill to arrive, then they have enough money in the separate account to fully pay off the bill. Some cards even have cash back or points you can earn. Just also be sure that you don’t have an annual fee because that will not be helpful at all.

Regardless of what you do, be sure to not carry a balance, pay your bill on time every month, and watch your credit report.

You can find more about your credit score at www.myfico.com.

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It’s summer! But your debts don’t take a summer break

We all look forward to summer. Sunshine, warm days, late nights, road trips. But what about those debts? They don’t take a break for summer. Many people try to avoid thinking about their debts over the summer, but those debts only get worse. It really is best to talk to someone about your debts when they first cause you problems, or even better, before they become a problem.

Everyone has a different tolerance level, so what drives you crazy may not drive someone else crazy. I talk to many clients who have waited until they’ve been sued and now they have a wage garnishment, and only then are they really concerned. We also have clients who know they haven’t paid a bill in 3 or 4 months and are trying to avoid that lawsuit or garnishment. Or maybe they are facing a foreclosure or car repo. Then we have people who know bad things are coming down the road and are trying to preplan to avoid all the bad things.

Rest assured that no matter in which category you find yourself, we can give you some options to help. Give us a call at 731-424-3315 no matter what stage you are in, so we can help, or visit our website www.tennesseefirm.com for more information.

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Have you checked your credit report lately?

I recommend checking your credit report often, at least once per month. The three credit reporting agencies are Equifax, TransUnion, and Experian. You can go directly to their websites to obtain your credit reports. You can also use www.annualcreditreport.com to try to obtain all three reports at one time. Generally you can get one free report per year, though during COVID many are allowing a weekly free report.

There are many free websites and apps to monitor your credit and notify you of any changes. One such services is CreditKarma (this is not an ad for them, just a mention). They pull from 2 of the 3 credit reporting agencies and provide updates as you set your preferences.

If you haven’t filed bankruptcy yet, getting your credit report will help you determine who you owe and what your bankruptcy will look like. You can just email the report to your attorney. You don’t have to print it.

If you have filed bankruptcy and discharged, checking your credit report can help make sure all the debt you got rid of in the bankruptcy is properly showing as discharged.

As always, if you have any questions at all, ask your attorney!