How to Identify and Fix the Most Common Credit Report Mistakes (Part 1)
Common credit report mistakes, such as inaccurate information regarding debt and credit history, should be fixed to prevent unnecessary damage to borrowers’ credit scores. Your credit score is a powerful number that can make the difference between whether you can secure a loan or mortgage and, if so, what your interest rate will ultimately be. While your credit score is determined by the information on your credit report, it’s important that borrowers know that: Credit reports commonly contain mistakes. These mistakes can unnecessarily damage credit scores. Requesting a copy of the credit report at least once per year [...]
Beware of Payday Loans! Payday Loan Pitfalls and Alternatives
While payday loans may seem to be a quick fix in times of financial need, borrowers should know their alternatives to avoid possibly ballooning their debt with payday loans. Although payday loans can seem like a good solution when a person needs a quick sum of money, doesn’t have collateral for a loan and doesn’t want to endure credit checks, these loans can entrap borrowers, becoming a sort of financial quicksand that can quickly pull them into serious debt. The reason for this is that payday loans are associated with particularly high interest rates that can be as [...]
An Overview of the Uniform Debt-Management Services Act (UDMSA) (Part 2)
According to the UDMSA, debt management agencies that violate the terms of this Act can face serious penalties, including fines of up to $10,000. As a continuation of An Overview of the Uniform Debt-Management Services Act (UDMSA) (Part 1), here is some more important information regarding how the UDMSA affects the way that debt management agencies and services are legally allowed to operate within Colorado. While Part 1 of this discussion focused on what debt management agencies are legally required to do when it comes to the services that they provide to their clients, here in Part 2, [...]
An Overview of the Uniform Debt-Management Services Act (UDMSA) (Part 1)
The UDMSA governs how debt management companies are legally required to operate when it comes to providing services to debtors. The Uniform Debt-Management Services Act is a law adopted in Colorado and many other states to create uniform regulations for fair and effective debt management services. Adopted in 2009, the UDMSA became an important law to have in place when 2005 changes to U.S. bankruptcy laws required all debtors who wanted to apply for any type of bankruptcy to seek consumer debt counseling or management services. This, in turn, sparked many private debt management services to pop up, [...]
Financial Recovery after Bankruptcy (Part 2)
Financial recovery after bankruptcy can be achieved if debtors focus on living within their means and slowly rebuilding their credit. As a continuation of Financial Recovery after Bankruptcy (Part 1), here are some additional tips that can help those who have recently filed for bankruptcy rebuild their financial standing and, ideally, put themselves in a position that would minimize the chances that they would have to file for bankruptcy again in the future. Live within your means – Debtors who have recently filed for bankruptcy should be extremely care about the money they spend and should evaluate all [...]
Financial Recovery after Bankruptcy (Part 1)
After bankruptcy, debtors can begin rebuilding their financial standing by focusing on paying of their remaining debt and slowly building up their savings account. Filing for bankruptcy is an effective way for individuals to discharge much of their debt in order for them to achieve a financial fresh start. However, once a person has filed for and completed his bankruptcy case, there will still be a significant amount of work and responsibility he will need to take on in order to rebuild his credit and his overall financial standing. Although it can take some time to get back [...]
Possible Ways to Change Your Chapter 13 Bankruptcy Plan (Part 2)
Debtors may petition to change their Chapter 13 bankruptcy plans if they are hit with unforeseen expenses or they previously underestimated the amount of debt they owe. As a continuation of Possible Ways to Change Your Chapter 13 Bankruptcy Plan (Part 1), here are some additional circumstances that could make debtors eligible to petition bankruptcy trustees to alter their Chapter 13 bankruptcy plans. Debtors are hit with unforeseen expenses – While these expenses will not necessarily constitute new debt, they can divert a debtor’s income away from being paid towards the debt included in his Chapter 13 bankruptcy [...]
Possible Ways to Change Your Chapter 13 Bankruptcy Plan (Part 1)
Events that can necessitate a change to a debtor’s Chapter 13 bankruptcy plan can include job loss or a debtor becoming seriously injured. When filing Chapter 13 bankruptcy, debtors work with their bankruptcy trustees to devise a realistic repayment plan that will theoretically allow them to repay their debts within three to five years of filing. However, a lot can change after a Chapter 13 bankruptcy plan has been approved and is in place, and debtors may have to work with their trustees to alter this plan in order to reflect changes to their income and/or debt. The [...]
Aurora Woman Challenges CO’s Foreclosure Laws in Federal Court
An Aurora woman who has been fighting efforts to foreclose on her home has taken her case to a federal judge in an unprecedented effort to challenge Colorado’s foreclosure laws. An Aurora woman who has been fighting U.S. Bank’s efforts to foreclose on her home has taken her case to a federal judge in an unprecedented effort to challenge Colorado’s foreclosure laws. The woman will have until May 15 to provide a federal judge with evidence regarding how Colorado’s current foreclosure laws violate the U.S. Constitution, and her case – which has gone farther than any case presented [...]
Bankruptcy Facts: Common Bankruptcy Myths Dispelled (Part 2)
Understanding the truth behind the bankruptcy process and its outcomes will help debtors decide whether bankruptcy is the best choice for relieving their debt. As a continuation of Bankruptcy Facts: Common Bankruptcy Myths Dispelled (Part 1), here are some additional myths versus facts when it comes to bankruptcy. Understanding the truth behind the bankruptcy process and its outcomes will help debtors decide whether bankruptcy is the best choice for them to unburden themselves from debt and achieve a financial fresh start. My credit will be permanently destroyed if I file for bankruptcy. While your credit will take a [...]
