Oakland Debt Relief

One of the most common questions potential clients ask is this: How will filing bankruptcy affect my credit score? There is no simple answer to this question, and each person’s situation is different. But generally, bankruptcy can help people with relatively low credit scores, and it will limit the scores of people with high scores prior to bankruptcy.

Credit scoring is a tool that creditors use to make loan decisions. Having a number score makes it easier to for creditors to say yes or no to an application, or to set rates for approved borrowers. Also, after you file bankruptcy, your score is compared to the scores of other debtors who have filed bankruptcy. So if you take care of your credit situation after bankruptcy, you will rise to the top of that group. Your score can potentially be as high as 680 or so, but probably not higher than that.

Credit scores can rise after bankruptcy, but you should be careful to avoid taking on more debt. For example, if you had many collection accounts in your credit history prior to filing, you will no longer be personally liable for those debts after bankruptcy, and your score will rise.  But if you take on more high-rate personal debt soon after bankruptcy, your score will fall down again.

Before asking about bankruptcy and credit scores, everyone should consider what need they will have in the future for loans or credit. Post-bankruptcy, you should only be concerned about secured debt for large purchases such as real estate or vehicles. In most cases, a prior bankruptcy will not exclude you from consideration for home loans or car loans. You will probably pay a higher rate, however, and that will be a result of your total credit history and credit score.

It is important to manage your credit after bankruptcy to maximize the availability of credit for major purchases. A San Francisco bankruptcy lawyer can help you take the steps you need to take for a better financial future.

Affordable Debt Relief
www.kevinjstewart.com

When dealing with debt collectors, there are many options to consider. In the case of people who have no assets and are considered “judgment proof,” then the best option may be to wait and see if the collector files a lawsuit, let them obtain a default judgment, and challenge them to collect anything. But this is a good approach only if you will never have wages to garnish or other assets.

If you need to fight a debt collection action in court, there are some defenses and arguments you can make, but be prepared to lose on the issue of liability. To delay the collection process and buy some time to negotiate settlement, you may only need to file an answer. Debt collectors want default judgments. Answering defendants are a pain in the neck for them.  

This firm can help you aggressively fight a debt collection action, and in some cases negotiate a favorable settlement. Contact us today for a free consultation.

Affordable Bankruptcy and Debt Relief
www.kevinjstewart.com

Foreclosure is a complicated process that can cause a great deal of fear, confusion, and stress for any borrower who receives a foreclosure notice from their lender. But unless your property has already been sold in a foreclosure sale, there are steps you can take to stop the process and give yourself time to make the right decisions regarding your property. Consider the following options if you are facing foreclosure:

• File Chapter 13 Bankruptcy – This is probably the most effective response to a foreclosure, because it stops the process and gives you time to restructure all of your secured and unsecured debt based on your ability to pay.
• Negotiate a Loan Modification – Although we hear more about loan modifications today than ever before, the fact is that few borrowers are able to save their property through loan modification. In most cases, borrowers only buy some time before they find themselves behind in payments again and facing the same foreclosure process all over again.
• Negotiate a Short Sale – Short sales are agreements by the lender to accept an offer for less than the total debt securing the property. It is difficult to get a lender to agree to a short sale in the first place, and then lenders usually take too much time to approve the offers (if any) submitted by the borrower.
• Surrender the Property – This is often the best choice for a distressed borrower, where the borrower surrenders title back to the lender. Also called a Deed in Lieu of Foreclosure, this relieves the borrower of their security obligation, while saving the bank the costs of the foreclosure process.  

We can help you decide which option is best for you. Call 510 482 4720 today to discuss your situation and arrange a personal consultation.

Affordable Bankruptcy and Debt Relief
http://www.kevinjstewart.com