Does Your Resolution Involve Debt?

No one wants to file for bankruptcy but life happens and that’s what the Fresh Start Button is for.

An article in The Washington Post titled, “Americans’ top five financial resolutions and how to make them stick” illustrates people’s WANT to budget and save. The author provides some good tips on how to make a budget and stick to it (the subheading – no you don’t need a budgeting app to control your spending is pretty good too).

This article does not account for large amounts of debt. Something in life happens where you are laid off, injured or just simply without the money to save. You use credit to survive and all of a sudden – you are stuck. Saving money becomes far more difficult when you are making minimum payments only to use your credit because your cash is gone.

THAT is where Geraci Law can help. No one wants to file for bankruptcy but life happens and that’s what the Fresh Start Button is for. So many clients are happy and relieved and are ABLE to:

Start a savings account. Think about it – if you are spending $600 per month on minimum payments, you eliminate the debt and you have THAT $600 extra per month. Put 1/2 away in a savings account and in a year – you are at $3,600 in emergency funds (put ALL into a savings account and you are at $7,200).
Invest – see the article. The author references a free course from the North American Securities Administrators Association (NASAA).

You cannot start saving until you deal with the debt problem. Geraci Law attorneys are ready to talk to you and review all of your options. Read the article at https://www.washingtonpost.com/business/2022/01/04/new-years-advice-to-keep-financial-resolutions/

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com. Bankruptcy laws are in place to help you. Who knows bankruptcy like Geraci Law? Geraci Law has 30,000 5-star reviews since November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

How to Dispute False Item on Your Credit Report

It’s not mine, get it off my credit report! How long does bankruptcy stay on?

Article written by Attorney Peter Francis Geraci – read more like this @ https://www.infotapes.com/Articles

You can get a free credit report from one of the 3 major credit bureaus. Go to www.freeannualcreditreport.com If you see a debt listed that is not yours, you can contest it by filling out the form on each credit bureau’s dispute site.

Equifax https://www.equifax.com/personal/credit-report-services/credit-dispute/

Experian https://www.experian.com/disputes/main.html

Trans Union https://service.transunion.com/dss/login.page?dest=dispute

You can’t dispute things that are accurate. For instance, if you paid an account after it was late, the late account can show paid, but paid late. If you filed a bankruptcy, that fact that you filed stays on 10 years after your Chapter 7 filing date, and 7 years after your Chapter 13 filing date. If a debt that you received a bankruptcy discharge is listed, that is OK, as long as it shows that you owe nothing because of your bankruptcy discharge. Creditors know what a bankruptcy discharge means: you can’t file a Chapter 7 for another 8 years and have little or no debt except what you agreed to “reaffirm”, or survive discharge. So your credit score often goes up a lot after you get a bankruptcy discharge. Credit scores are bad because you have too much debt to pay, not because you got a discharge and now have no debt, and a fresh start, in most cases!

You can only contest things that are inaccurate. Here’s what Equifax says you can dispute:

• Personal information: Your name, addresses, Social Security number or date of birth.

• Account information you believe is inaccurate or incomplete: For example, if late payments are being reported on one of your accounts but you have always paid your balance on time and in full.

• Mixed credit files: If someone else’s information is being reported on your credit file. This may happen if a father and son (Sr. and Jr.) have the same name, for instance.

• Duplicate reporting of an item: One example might be a debt listed twice.

• Information that may indicate fraud or identity theft: These would be credit accounts, including collection accounts, on your credit report that you don’t recognize.

Whether you’re contacting a lender or the credit bureaus, provide all the evidence and documents you can to support your dispute, such as an account statement verifying an account balance. Give details about why you believe the information in the credit report is inaccurate or incomplete.

What should I expect after filing a dispute?

If you file a dispute with the three nationwide credit bureaus, you can generally expect to receive the results of your dispute within 30 days. If the information is found to be inaccurate, your credit reports will be updated, generally within about 30 days.

If the result of the investigation finds that the information is accurate, it will remain on your credit reports. If you still believe the information is inaccurate or incomplete, and you have additional information that can help support your dispute, you can file your dispute again with the credit bureau. You also have the option to provide a brief statement on your credit reports summarizing your dispute, which can help explain your situation. Or you could contact the creditor to attempt to resolve the issue.

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com

Credit Score & Bankruptcy Misconceptions

Geraci Law is here to help. Sometimes it’s just admitting that you need help as the first step. We’re happy to talk to you about debt, credit scores and how to achieve your financial goals.

There’s a misconception of bankruptcy being the end all, be all to your financial future. In practicality it’s the opposite for most people. It’s simply relief and the opportunity to start again. The question you do not want to ask is, “will bankruptcy ruin my credit” but rather “can I pay off my debt in full?”

Bankruptcy is not the end of your future. The crazy thing is you will most likely get MORE offers after filing for bankruptcy than you do now. Creditors love you in debt. If you are making the minimum payments every month, your cash is gone forcing you to use the credit again. Another minimum payment paid, another tank of gas charged and the debt cycle continues.

What bankruptcy WILL do is eliminate your obligation to a debt balance. You have a fresh start – you are back to square one where the money you were paying out to interest (maybe late fees) is back in your pocket.

You can start a savings account!

You can rely on a budget to meet the household expenses!

You can save to buy a car for cash!

You could save to buy a house after bankruptcy!

You are no longer reliant on credit for simple survival. It’s absolute freedom from the debt cycle.

There’s a misconception of I NEED A CREDIT CARD. You don’t. If you do – there are several options like a secured credit card if you want to keep the plastic. Debit cards are wonderful tools to stick to a budget.

Check out these debt calculators. Almost all billing statements will show the total balance and your interest rate.

https://www.creditkarma.com/calculators/debtrepayment

https://www.nerdwallet.com/article/finance/debt-snowball-calculator

https://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx

Geraci Law is here to help. Sometimes it’s just admitting that you need help as the first step. We’re happy to talk to you about debt, credit scores and how to achieve your financial goals. Check out an article written by Attorney Peter Francis Geraci @ https://www.infotapes.com/articles/news/65/does-chapter-7-or-13-bankruptcy-ruin-my-credit/

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Does Chapter 7 or 13 Bankruptcy Ruin My Credit?

Bad credit can’t be ruined by getting out of debt. Bankruptcy gets you out of debt. No debt = better “credit”.

Below is an article written by Attorney Peter Francis Geraci explaining filing a bankruptcy could actually IMPROVE your credit score. Read more articles written by PFG at https://www.infotapes.com/Articles.

Most people filing bankruptcy have bad credit scores. Most are below 600. That is bad credit.

Bad credit can’t be ruined by getting out of debt. Bankruptcy gets you out of debt. No debt = better “credit”.

Studies have shown that your credit score goes up after bankruptcy discharge. Take my 2 hour debtor education course if you want to improve your credit. Go to http://www.pfged.com  

If you can get a house and a low interest rate on a vehicle, you probably don’t even need bankruptcy relief.

But, if you can’t afford to pay your creditors, but you have a good credit score, you probably don’t have good credit, you have good debt! Soon or later, the credit bureaus are going to notice you’ve maxed out on credit and your credit score is going to fall.

Bankruptcy does not generally ruin your credit more than it is already. Many people say to me, “I’m current on all my cards. I have good credit.” Then I find out that they have been getting cash advances on one card and using that money to pay the other charge cards. That is borrowing money when you cannot repay it. If you do that, you may not have good credit.

Credit is the ability to borrow money. Lenders look at several things about you if you want to borrow money. First, they look at your ability to repay it. If you have a lot of bills to pay now, you probably can’t afford to borrow more, because you won’t be able to repay it.

Second, the credit bureaus look at your history of repayment. If creditors reported you slow-pay, or have lawsuits, garnishments or repossessions, you already have ruined your credit history. Getting rid of your bills in a bankruptcy may improve your situation. You will have no bills to pay, or maybe just one or two. You will then be able to try to save a little money. Also, you can’t file another bankruptcy until six years have passed. Many lenders will allow you to re-establish credit, because now you have a better ability to repay.

The third main factor that a lender looks at is the security or collateral given for the loan. You may need more money down than in the past.

At Geraci Law, we want to make your life better. So if we think you don’t need bankruptcy relief, we tell you. Take our free 20-minute credit counseling course at Infotapes.com, or our 2 hour Debtor Education Course at pfged.com for more information.

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Better Credit Scores After Bankruptcy

A study by Harvard and the Federal Reserve found people who FILE for bankruptcy are generally in a better position financially with access to better credit than people who do NOT file an attempt to slowly pay down bills.

That’s right folks, filing a bankruptcy can be a GOOD thing. You eliminate your obligation to the balances with the opportunity to REBUILD. According to the Federal Reserve,

“[people who file bankruptcy] experience a sharp boost in their credit score after bankruptcy, whereas credit scores recover at a much slower pace for individuals who remain [in debt]. The credit score of bankrupt individuals exceeds the credit score of insolvent individuals by 40-80 points. In addition, those who go bankrupt open new unsecured accounts post-bankruptcy at a higher rate (by around 15 percentage points) than those who don’t file bankruptcy, while the number of inquiries is very similar across the two groups. This indicates a difference in access to credit, not demand for credit. [The Federal reserve] conclude[ed] from this evidence that the ability to file for Chapter 7 bankruptcy is associated with better access to credit, and while both insolvency and bankruptcy are forms of default, the debt discharge associated with bankruptcy leaves filers in a better financial position than individuals who become insolvent in similar circumstances.”

So your credit score could increase by 40-80 points! The money you are spending slow paying the minimums is money you can start SAVING or using to pay for essentials like groceries and gas instead of relying on the credit.

It’s not time to wait. It’s time to handle your debt once and for all. Geraci Law is here for you. We’re happy to meet with you in office or virtually. It’s time to decide if you are ready to be DEBT FREE with a higher credit score and fresh start to reach your credit goals.

Read entire study here https://scholar.harvard.edu/files/pgoldsmithpinkham/files/dgy_bankruptcy.pdf

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Bad Credit = MORE Interest

Credit scores fall into 5 categories to determine interest rates. Consider Geraci Law to help with your credit score!

Bad Credit = MORE Interest

According to an article on CNBC (read here) – more than 1/3 Americans have a credit score that is considered “subprime.” If you are one of these people, you may end up paying THOUSANDS more in interest than borrowers with better credit scores. Filing a bankruptcy can HELP improve your credit score!

The Consumer Financial Protection Bureau (CFPB) puts Americans into five different categories.

Deep Subprime – any credit score below 580

Subprime – any credit score between 580-619

Near-prime – any credit score between 620-659

Prime – any credit score between 660-719

Super-prime – any credit score above 720

Where do you fall? Your credit score is not only determined by timely payments. Your debt to income ratio plays a role. Do you have more debt than income in a year? Are you behind on payments? Are you considering borrowing money from a 401K or family member to pay off debt? Before you make a huge decision, talk with a Geraci Law attorney (guess what – it’s FREE).

Even if you are paying your minimum payments, you may not realize how much you are paying in interest! According to the CFPB, a Deep Subprime borrower paid 21.50% interest versus a Super-Prime borrower paying 12.50%. That is a HUGE difference.

Filing a bankruptcy could change your life for the better. You may IMPROVE your financial future to qualify for the better rates on mortgages, car loans or even credit cards. Don’t know your credit score? Not sure of what debt is reporting? Geraci Law can help!

Want more information about credit scores and bankruptcy? Below are a couple of links to related topics!

FICO Creates New UltraFICO Scoring System

When Should I File For Bankruptcy?

Credit Concern? Call Geraci Law!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Chapter 7 – What Happens to My Credit Score if I File Bankruptcy?

An excerpt from Attorney Peter Francis Geraci’s “The Complete Book on Bankruptcy.”

Below is an excerpt from Attorney Peter Francis Geraci’s “The Complete Book On Bankruptcy.” You can read the rest of the book online at https://www.bankruptcybookbypeterfrancisgeraci.com/.

CHAPTER #7 What happens to my credit score if I file bankruptcy?

Strangely, it usually goes up. Most of our clients have a credit score of below 600. Four months after filing Chapter 7, you should receive a discharge. You then have a creditor report that shows way less debt, and that you received a Chapter 7 discharge. If you are working, now you are not under pressure to pay bills you cannot pay, and can start saving. You also cannot file Chapter 7 for another 8 years, or in a Chapter 13 for another 4 years. So the lenders think you are a pretty good risk for lending, since you have little debt, and no ability to file bankruptcy, and a job. Your credit score can go up as much as 100 points.

If you had a credit score of 700 or more, and filed bankruptcy, it was a phony score, since you were overloaded with debt. Even so, after a Chapter 7 discharge, it may not change much, or it may go back up.

Regardless of credit score, after you receive a Chapter 7 or 13 discharge, you will find yourself able to buy a vehicle or house if you have the right job and down payment. The key is to save up a down payment, and not get overloaded again.

Take our Debtor Education Course taught by attorney Peter Francis Geraci as soon as you file for either Chapter 7 or 13. Or even before filing for $25. It will help you understand how to raise your credit score.

If you need help or have questions – our experienced staff is ready to help. Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com. Bankruptcy laws are in place to help you. Who knows bankruptcy like Geraci Law? Geraci Law has 25,000 5-star reviews since November 2016!

Credit Concern? Call Geraci Law!

Banks are cutting access to credit. Are you overwhelmed with bills? Are you worried about debt? Call Geraci Law.

Credit Concern? Call Geraci Law!

Have you noticed your available credit is cut? Did you see an account get closed? Credit card companies are cutting available lines of credit. Over 30 million people applied for unemployment as a result of the pandemic.

With the number of people unemployed, banks consider credit too big of a risk. So if you are late with payments, if you haven’t used the card – odds are the credit line will be cut.

If you are RELYING on credit to get you to the next paycheck, it’s not a great long term plan anyhow. Instead consider bankruptcy.

The cash you are spending on minimum payments that is NOT paying off the balances with interest could be the money you have as a safe hold. Create a budget and stick to it but you can’t create a budget until you deal with the past due balances.

Filing for bankruptcy is a FASTER way to handle your debt. Credit counseling, making minimum payments will cost you THOUSANDS in interest and it could take YEARS to pay off the balances. Your credit score still takes a hit and typically will take LONGER to get on the path to rebuilding.

You do NOT need credit cards. Realigning your budget and using a debit card could save you thousands. If you want a credit card, then pay it off every month. Only use the credit card for what you can pay off so you can AVOID interest. That timely payment every month can help you reestablish a payment history.

So if your credit line is cut, if your cards are maxed out, if you are simply overwhelmed by the debt – call us. It’s a free conversation that can change your life for the better.

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Need a Car? File for Bankruptcy.

Need a car? Consider filing a bankruptcy FIRST with Geraci Law.

Need a Car? File for Bankruptcy.

Do you have bad credit and want a car loan? Good luck. Consider filing bankruptcy with Geraci Law BEFORE applying for a new car loan to deal with your other debt first – maybe including car repossession balances.

Some banks and dealerships prey on people with bad credit. You are pressured to buy something you cannot afford with a promise to “refinance later” or a trade in. If you return the car to the financer, you may find yourself with a lawsuit for the deficiency. If you STILL have the car, you might be paying for something that needs thousands in repair or that you are overpaying for.

So what to do? Bankruptcy with Geraci Law might be your best option. Think about your car loan. Think about your answers to the following questions.

– Do I have a warranty on the car?

– Is my interest rate over 20%?

– Does the car pass emissions?

– How much maintenance or work needs to be put into the car?

– Is the car older than my kids?

– Is my car loan more than 5 years?

You are probably OVERSPENDING on your car or your vehicle is NOT worth keeping when there are alternatives.

Car dealerships will promise you the world. They want to you to buy a car TODAY with the promise of refinancing after timely payments for a few months. Good luck.

That “refinance” the dealership is talking about—is likely NEVER to happen. Cars depreciate the moment you drive them off the lot. Most people do not build equity with timely payments– if your payment is high it’s most likely because your interest rate is high. Most timely payments are simply going to the interest on the loan NOT the principal.

If you turn the car in because you cannot afford it – you may owe a deficiency balance. The financer will sell the car and attempt to collect on the difference. You could be sued, garnished, have assets frozen – STOP these actions with a bankruptcy! Filing a Chapter 7 or Chapter 13 with Geraci Law can stop or prevent collections from your creditors.

After eliminating or consolidating your debt, you can apply for a car loan. You will be in a BETTER position to do so because you have NO other debt.

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

What Happens to My Credit?

Geraci Law answers 5 common questions about credit after filing for bankruptcy. What is “good” credit?

What Happens to My Credit?

Geraci Law answers 5 common questions about credit after filing for bankruptcy. What is “good” credit?

When can I apply for credit?

You can apply for credit after your case is discharged and closed. But should you apply for credit? You do not want to find yourself in the same position you just discharged in bankruptcy. You are a credit risk immediately after filing for bankruptcy. Creditors KNOW you filed for bankruptcy and after bankruptcy you have limited bankruptcy relief options. These creditors prey on you because you are a credit risk so you WILL get loan offers.

Any credit preapproval you receive will usually come with high interest rates. It may be better to NOT use credit. SAVE money, make house/car payments ON TIME, stay away from the high-interest credit debt and personal loans.

When can I buy a house?

You can apply for a home loan after your case is discharged and closed. Some people are approved while they are IN a bankruptcy. FHA loans might be an option. For a conventional loan, usually its two years after a bankruptcy discharge. Geraci Law is here to help with the process. If you need your bankruptcy paperwork – YEARS down the road, you can log into your Geraci Law Client Corner account to print. You can also search Geraci Law in your app store on your phone to download our Geraci Law app.

What happens to my credit score after filing Chapter 7? Chapter 13?

In your post-bankruptcy life, you should focus on rebuilding financially. Start with a savings account and build an emergency fund. If you have a car payment or mortgage payment, continue to make those payments ON TIME to work to reestablish a payment history.

You will get credit offers in the mail – do your research! Look at the interest rates – if you are going to use the credit, then make sure you pay off what you borrow every month. Do not accept the first offer that comes your way. Review the small print, stay away from the predatory lenders.

When can I buy a car?

After the bankruptcy is discharged and closed you can buy a car. If you are in a Chapter 13 right now, you need court approval if you are looking to FINANCE a vehicle. Craig’s List is a great option to buy a car for cash. You’ll get advertisements from car lots in the mail after bankruptcy – make sure to review the terms. Avoid the high interest, older vehicles without a warranty.

How do I rebuild credit?

Pay all of your bills on time! Timely payments prevent late charges and helps you reestablish a payment history.
Make sure all of your creditors are reporting to the three major credit agencies (Experian, Transunion, Equifax).
Dispute incorrect items on your credit report. Don’t ignore your credit report! All agencies have options to dispute right on their web site, make sure to follow up.
Make a large down payment – making a large down payment on any kind of credit make lenders more likely to grant a loan. Your goal should be to put down 20% of the total cost.
A small secured credit card is a really great way to build credit with very little risk.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com. Bankruptcy laws are in place to help you. Who knows bankruptcy like Geraci Law? Geraci Law has 25,000 5-star reviews since November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com

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Bad Credit = MORE Interest

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CHAPTER #7 What happens to my credit score if I file bankruptcy?

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Credit Concern? Call Geraci Law!

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Need a Car? File for Bankruptcy.

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What Happens to My Credit?

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