A common question is, “how do I rebuild my credit?” The first step to rebuilding is taking care of your past due debt. Every late payment, co-signed mishap and judgment affects your credit. If you leave untreated, you could face a wage garnishment, judgment lien and a large hole to dig out of.
Debt settlement and payment plans do not work for everyone. In order to settle, you usually need savings to do so. Creditors will work with you if you can pay them in full, quickly. You could be better in a bankruptcy with Peter Francis Geraci and Geraci Law.
A Chapter 7 bankruptcy eliminates your debt and a Chapter 13 consolidates. In a Chapter 13, you can pay back what you can afford to pay. Upon discharge (of either Chapter 7 or Chapter 13) you have a fresh start!
What you do with this fresh start can help determine how quickly you rebuild. You should save money, make payments on time (on car notes, mortgages, etc.) and reestablish a payment history. You no longer need to rely on credit and can live within your means.
You can take the first step to becoming debt free by calling us. If you are looking for additional information about credit, please watch the free counseling video by clicking the link below.
A young man wanting to marry his girlfriend came into the Geraci Law Northside office and met with Attorney Laura Caputo. His girlfriend would not marry him until his debt was under control. He was overwhelmed by medical bills, past-due utilities and behind on his car payment.
Originally, he wanted a Chapter 13 repayment plan to stop the repossession of his vehicle. He financed an older model in need of repairs. He fell behind on payments after the birth of his child and could not get current.
Attorney Caputo reviewed the man’s budget and Chapter 13 options. He would pay almost double the car’s value. He decided Chapter 7 debt elimination could give him a fresh start and make his girlfriend happy.
An experienced bankruptcy attorney like Illinois Geraci Law Attorney Caputo provides long-term solutions to problems. A Chapter 13 bankruptcy would stop the repossession but he would be paying thousands on an underwater vehicle. Instead, he is now debt free and able to plan his wedding.
Before meeting with Illinois Geraci Law Attorney Daniel Springer, a Rockford man met with a local attorney. The other attorney offered a “cheap” fee as advertisement of the office. When the client walked into the office, he found a shoeless attorney wearing jeans.
Worried about the fee and the lack of shoes, he left the office. He came to the Geraci Law Rockford location. He was impressed by Attorney Springer’s bankruptcy knowledge and detailed explanation of Chapter 7 and Chapter 13 options. Also Geraci Law attorneys wore shoes!
He hired Geraci Law and within one week, the case was filed!
An Indiana man filed a Chapter 7 Bankruptcy with Peter Francis Geraci and Geraci Law Attorney John Allman because of overwhelming medical bills and student loans. After earning his GED, he became homeless and unemployed.
Because of diabetes retinopathy and the inability to afford necessary medical treatment, his vision started to deteriorate and he was diagnosed as legally blind at 31 years old. He started receiving Social Security Disability benefits as his only source of income. He has been unable to find work because of his disability and he met with Attorney John Allman at the Geraci Law Indianapolis location.
Attorney Allman listed American Education Services and Sallie Mae as creditors on the bankruptcy petition. Attorney Allman filed an adversary proceeding on his client’s behalf arguing the student loan debt should be dischargeable in a Chapter 7 bankruptcy because of the undue hardship. The total amount owed in student loans was approximately $34,000.
Student loans are not generally dischargeable in a bankruptcy filing. Attorney John Allman was successfully able to argue that the student loans imposed an undue hardship. The Indiana man could not meet his basic living needs on his fixed income and could not work because of his disability.
Without the above and beyond work by Geraci Law staff and Attorney John Allman, the Indiana man would have been left with a fixed income of less than $950 per month and over $34,000 in debt.
A couple met with Wisconsin Geraci Law Attorney Brent Berning for a Chapter 13 bankruptcy consultation. The couple used a credit card to pay $24,000 in tax debt. Attorney Berning explained to the couple, the credit card company would likely file an adversary arguing the debt should not be discharged (or eliminated).
After filing, an adversary was filed. The credit card alleged the entire balance of the credit card is non-dischargeable. The adversary claimed the couple committed fraud and incurred the debt 90 days before filing. Attorney Berning met with the client and reviewed options.
Counsel for the credit card company refused settlement and refused to negotiate the balance. The credit card company wanted the balance in full plus interest. Clients strongly felt the credit card company were falsely accusing them of fraud and wanted to fight.
Ultimately the case came down to the facts. Attorney Berning presented evidence proving the couple did not commit fraud. After 14 years of timely payments, the debtor lost his job and was unable to make payments. There were no prior bankruptcies and the couple did not consult an attorney before paying the tax debt on a credit card.
Attorney Berning won the adversary. If the credit card company was not so greedy, the Wisconsin couple would have agreed to settle.
The Wisconsin couple made the right choice in hiring Geraci Law and Attorney Berning. With the experience of Attorney Berning, the couple was able to save $24,000 plus interest and get a fresh start!
A bankruptcy will not modify your mortgage payment. The only way to reduce or modify your monthly payment is with your mortgage company. Many loan modifications are not approved. If the modification is approved, the arrears (back mortgage payments) are often attached to the end of the loan. This means your mortgage length can be extended beyond 30 years!
Filing a bankruptcy can help make the mortgage more affordable. Chapter 7 bankruptcies can discharge (eliminate) unsecured debt like credit card and medical bills. By eliminating the minimum payment, you free up income in your budget to make your mortgage payment. A bankruptcy will improve your debt-to-income ratio and allow you to save money. After a few years, you can try to refinance for a better long-term solution.
Peter Francis Geraci and Geraci Law Attorneys will figure out a way to get you out of debt. You can use the experience of Geraci Law and federal law to get a handle on your finances. If you are not approved for a loan modification and find yourself in foreclosure, a Chapter 13 with Geraci Law can save your home!
Creditors will file lawsuit for debt. Many people assume a credit card company wouldn’t bother with small balances. However, interest and late fees can take a small bill to a big problem.
A judgment is court-ordered and you if entered – creditors can garnish paychecks, freeze assets, or put liens against property. The good news is Geraci Law can help!
You can attend and try to settle the debt but usually you will need a lump sum. You can work out a payment arrangement but if you miss a payment – the judgment can be entered.
Once the first lawsuit is filed, there can be a domino effect of other creditors. Older debt transferred to collection agencies will wait in line to get paid from your paycheck. Garnishments are deducted from your gross pay so more overtime equals more paid to your creditors. Stop the lawsuit chaos before it starts with Geraci Law.
You will STOP the lawsuit, STOP the constant phone calls and STOP further action by your creditors. Peter Francis Geraci and attorneys offer no-money down Chapter 13 options and Chapter 7 payment plans.
One of the biggest causes for divorce is debt. Many couples do not discuss financial troubles or try to hide debt from each other. Debt can become overwhelming and it’s easy to bury your head in the sand. If you are going through a divorce and have debt – consider a bankruptcy with Geraci Law.
After a divorce is final, a person’s budget is drastically changed. You can lose a spouse’s contribution to the monthly budget or start paying additional spousal maintenance or child support. By eliminating the debt with a Chapter 7, you are able to free up your income to budget new expenses.
Consider your bankruptcy options before a divorce is final. You and your estranged spouse can file a joint bankruptcy and pay only one attorney fee. Once the divorce is finalized, you are no longer able to file together.
Bankruptcy and divorce are complicated legal matters. It’s extremely important to seek legal counsel before making any decisions. Peter Francis Geraci and Geraci Law are experienced in all consumer bankruptcy matters including how it could affect your divorce. You both can have a financial fresh start!