Debt Consolidation
Colorado Bankruptcy Watch: State Senate Muzzles Employers Stalking Credit Scores
Colorado debt-relief attorneys applaud the efforts of Sen. Morgan Carroll (D-Aurora) along with the rest of the Colorado State Senate for passing SB 12-003, otherwise known as the Employment Opportunity Act of 2012.
As part of a larger “Colorado Works” legislative effort that aims to increase employment across the state, the goal of SB 12-003 is simple: to prohibit employers from using an applicant’s credit report information as a screen for employability — unless the position in question is directly related to money or asset management.
In addition, if an employer opts to not to hire an applicant based their credit report score, this reasoning must be disclosed to the candidate. Also, prospective employees must be given the opportunity to explain any negative information on their report. Failing to comply with these directives can lead to civil penalties. The bill now heads to the House of Representatives for consideration.
According to USAToday, Colorado now joins seven other states that have enacted similar laws to prevent credit report discrimination against job seekers.
Denver bankruptcy lawyers have seen time and again how unemployment sparked by our nation’s economic downturn has devastated families and destroyed, literally, millions of personal credit scores. As reported in the Coloradoan, credit scores drop for numerous reasons, including unemployment. But even for those who have managed to cling to their jobs, factors ranging from medical emergencies to identity theft to divorce and single parenthood — each of these factors can and do contribute to personal financial crisis and, ultimately, the tanking of personal credit rating.
Forbes offers the following tips for job seekers wanting to improve their credit standing:
~ check your credit score (federal law entitles you to an annual free credit report),
~ pay your bills on time,
~ reduce your debt, and
~ manage your credit card(s) responsibly (note: NOT having a credit card can be as bad as abusing one).
Colorado Bankruptcy Attorney Jon B. Clarke have represented clients throughout Colorado and the Denver Metro area for more than 30 years. If you are dealing with bankruptcy or debt-related issues in Colorado, call (303) 779-0600 to schedule a free consultation today.
Soaring Gas Prices Push Families to Seek Colorado Debt Relief
Despite reaching a four-year low in unemployment claim filings, Bloomberg.com reports that thanks to a 17 percent jump in gasoline prices since January, consumer confidence is again taking a hit. Denver bankruptcy attorneys, like the rest of the nation, have been watching with dismay as gas prices continue to climb up, and up, and up.
Colorado debt-relief lawyers know that for those folks trying to curb spending to help make ends meet, transportation costs often give up the least wiggle room. Kids have to get to school and parents have to get to work, to the grocery, to the bank and so forth. For families struggling to stave off a Denver bankruptcy filing, the fact that gas prices across the nation have clicked upward for eight days straight does little to improve personal finances.
CNN Money reports that Colorado drivers are currently paying about $3.56 a gallon for gas. Thankfully, those prices are on the low end of the national average. As of this post, Wyoming drivers are enjoying the lowest gas prices at $3.40 a gallon as Hawaii drivers are paying out a whopping $4.48.
With that said, it isn’t just the spike in prices, but the amount of income spent to keep tanks full that paints a clearer image of how gas prices are impacting families. Across Colorado, residents are outlaying 5.4 percent of their income in fuel costs. In contrast, gas prices are gobbling up 11.8 percent of income for Mississippi residents, 10.6 percent for Montana drivers, and 10.0 and 9.9 percent in North and South Dakota, respectively.
Matching soaring gas prices with wobbly consumer confidence and a still-high unemployment rate means that for far too many Colorado families, preventing a personal financial crisis is just not possible. In many cases the economy simply isn’t improving fast enough as bills continue to pile up.
The debt-relief attorneys at the Law Office of Jon B. Clarke bring more than 30 years experience helping clients obtain a fresh start with mortgages, car loans, personal guaranty, credit card debt or other debt relief. To schedule a free consultation today, call (303) 779-0600.
How to Begin With a Bankruptcy
Bankruptcy has become something that can be very complicated upon first glance. When you’re considering bankruptcy you may find some terms and things that make it seem that it is very time consuming. It can be a little bit, but it’s also important to note that when you have someone on your side to help, you can find your way through and get the new beginning you need. All it takes is making that first step.
There are first a few things that you should have in order to begin your case. Having this information on hand will help to not only better asses your situation but also to help get things moving in a much more efficient way. Any bankruptcy attorney you see will need to know this information, so having it from the start can be a big help. Filling out a bankruptcy intake questionnaire is normal. You will need to fill this out as completely as possible with the information requested. Also, copies of your pay. Whatever record keeping you have for every wage earner in your household will need to have this information together and this needs to be for not only the current month but for the six months previous to it. You’ll also need last year’s tax return, your most recent credit counseling certificate, and if you can, get your credit report from each of the credit reporting bureaus. Those are the basics, and a more full listing of what is needed can be found here.
You can usually either bring this in with you, or you can fax it, which ever you feel more comfortable with. However, having that information in the office ahead of time often helps a great deal. Understanding which assets you need to report can seem a little tricky but if you have questions there is plenty of information around the site to help, and you can always ask.
If it relates to your finances, having it all together neatly and ready to go through can be a huge help in moving your case along in a much more efficient way. This is the easiest way to make sure that you are able to get things going with the least amount of hassle. From there, your attorney will help you to understand everything that will need to happen and then, what you will need to do to get things moving and have your case filed and under way.
Bankruptcy and Student Loan Debt
Most people do not realize that there are certain types of debts that cannot be discharged via bankruptcy. If you’re in doubt, you may want to have an analysis done so that you can see if filing for bankruptcy is right for you. Talking to a bankruptcy attorney can also help you to know which debts you have will be relieved.
However, recently in the US, there has been a strong spike in student loan debt. According to USA Today, this monumental debt now totals roughly 850 billion dollars and well outstraps all total credit card debt. The site publisher from where this information orginates is Mark Kantrowitz, and he publishes two scholarship matching services. These are known as FastWeb.com and also FinAid.org.
The crux of the issue appears to be not so much the total debt, but the amount that most borrowers have to repay each month. On a $30,000 student loan, the interest rate may be payable at about 6.8 percent interest for ten years. This makes a $350 monthly payment. Most people don’t realize when they first enroll that something like that would necessitate earnings of around $42k a year.
You often see student loan debt come up as an issue in bankruptcy practice because of this. The fact is, most students will accrue more than $100k in student loan debt, and this means payments of over a thousand dollars a month. With the economy being what it is these days, couple that with other economic hardships and the high number of bankruptcy cases being seen, it’s no wonder people have difficulties.
There are certain cases where student loan debt may be discharged. These are known as “undue hardship” cases, or in some states, “extreme hardship”. The latter is a better way of phrasing it because it is usually very difficult to obtain this discharge. This will typically involve someone who has become medically incapable of working and in those cases alone. Unfortunately, these cases are extremely rare, and thus far, no one has been able to obtain a discharge on the basis of simply not being able to find a job that enables them to support themselves while also repaying those loans.
Now, of course, this is problematic but it does not mean that bankruptcy is not a good option in these cases. If you do find yourself in an overwhelming amount of debt, including student loans, the debts that can be discharged via bankruptcy, or even put on a repayment plan you can work with can help you to be able to repay those student loans that much faster.
Pros and Cons of Debt Consolidation Loans
Bankruptcy can seem like the only option when debts reach unmanageable proportions. However, bankruptcy has long-term consequences, such as a huge dent on your credit file that takes 10 years to go away. Bankruptcy can make getting a job or a mortgage difficult. Filing bankruptcy also involves filing fees that you may or may not be able to afford.
A debt consolidation loan may be a viable alternative to bankruptcy if you’ve managed to preserve your good credit. Debt consolidation loans are unsecured loans used solely to combine all or most of your bills into one monthly payment. A debt consolidation loan helps you avoid having to deal with several creditors all at once and spares you the stress of dealing with calls and letters from creditors and debt collectors.
Debt consolidation loans are typically available at lower interest rates than those on your credit cards, but it depends on the financial institution. Loan terms are longer than those of conventional loans, which results in lower monthly payments for you. Consolidating your bills into one payment makes it easier for you to establish and stick to a budget. Paying off your debts with a consolidation loan also improves your credit score.
The downsides of debt consolidation loans is that the loan interest is not tax deductible. In addition, while you may pay less interest, you actually pay more in total interest due to the longer term associated with these types of loans. Unlike a personal loan, there are fees associated with taking out debt consolidation loans. Some financial companies may charge high fees or high interest rates, so you need to shop around to find those institutions that offer debt consolidation loans at a low cost and low interest.
If you do the math and find that you would pay no less per month with a debt consolidation loan than you already are, you could consider looking into a debt management program or, as a last resort, bankruptcy. A bankruptcy attorney will explain the entire process from start to finish and give you all the information you need to make an informed decision on the best option for you.
Greece’s Financial Woes Have a Far Reaching Effect
The Greek financial crisis has been labeled a Greek tragedy by Time magazine in a story published in June. The far reaching effects may be spreading to other European nations as well. The blame is put on bad policies in the past, but the current world economy has its own influence on the Greek situation and even in our home state of Colorado. Home foreclosures, bad credit card debt and selling securities backed by inferior mortgages has led to quite a financial mess in the U.S. nationally and Colorado locally.
A person facing large tax liens on their home, or a mortgage that’s impossible to meet due to unemployment, medical problems, or any other situation should seek the advice of a Colorado bankruptcy attorney. The idea of bankruptcy brings a shudder to many people, but once it is explained by an expert in the field it may lose some of its negative implications.
Bankruptcy is not for everyone and a Colorado bankruptcy attorney knows that. Whatever the best plan of action for your particular situation is, your attorney will explain the legal reasoning behind it and give you the proper steps needed to implement this plan. Attention to your situation is what is needed. Dodging phone calls and never getting back to those who leave messages only worsens the problem.
There may be solution to your problems that needs to be started immediately, but your ignoring of the situation could cause this opportunity to pass by. Meeting with a Colorado bankruptcy attorney will give you the feeling of taking control of your life again. It is better to be proactive when you have so many creditors that want to file judgments and liens against you. You need another person on your team to face these creditors. The team mate you want has the skill and the knowledge to get you through this financial crisis. Your problems may not be anywhere near those as complicated as Greece, but not properly handling them with the help of your Colorado bankruptcy attorney could lead to you own personal tragedy.
Medical Expenses Lead to a Great Number of Personal Bankruptcy Filings
Forbes magazine last March cited medical costs as the number one reason for filing personal bankruptcy. It’s a good chance that after this year’s statistics come out, the story will remain the same. Even with new legislation making health care insurance more available taken into consideration, medical costs are still rising with no end in sight. The situation in Colorado will most likely mirror the rest of the country. If it doesn’t, all that will mean is some other reason will be the number one cause for personal bankruptcy.
If medical bills or any other unforeseen financial situation has caused you to be late with your credit card payments, utility bills, and mortgage; bankruptcy may be your only alternative. Meeting with a Colorado bankruptcy attorney will be your best chance to get out from under your current situation. The number of phone calls requesting when payments can be expected can be hard to take. Ignoring them is no solution. You need to get information on what a person can do to slow the avalanche of payment requests and pestering phone calls.
The Colorado bankruptcy attorney can tell you if you qualify for filing and give you information on all the pluses and minuses when declaring bankruptcy. It is true that your credit rating will be affected, but there is plenty of damage that your late payments have already done. The best strategy for repairing this damage is what you will need. The Colorado bankruptcy attorney can give advice on what steps are needed to put that strategy into motion.
Saving your home will probably be your number one priority. If you are not behind in your mortgage, maybe a reorganization of all your other debt can be arranged. This reorganization will then help insure that you don’t have to start skipping mortgage payments because your other debt has continued to mount. Too many people get paralyzed by all the hopelessness that financial problems can cause, especially when it is compounded by having to fight through a medical problem. The stress of medical illness along with that of financial anxiety must be alleviated. You can accomplish this by meeting with a Colorado bankruptcy attorney and making out a plan to improve your financial future.
Onetime World’s Richest Divorcee Has Filed for Bankruptcy
Time magazine reported on line June 23, 2011 that the onetime “worlds richest divorcee” Patricia Kluge was filing for bankruptcy. Her divorce settlement in 1990 was reportedly for 1 billion dollars. It sure seems like no one is safe from financial problems in our country. The state of Colorado has seen its fair share of bankruptcy filings the past three or so years and if you have been at a loss in solving your financial problems a consultation with a Colorado bankruptcy attorney may offer some answers.
The long barrage of phone calls asking for money you do not have can be taxing and non productive for both you and the callers. A meeting with a Colorado bankruptcy attorney will help you clarify what options you do have. If you are falling behind in taxes or your mortgage the sooner you meet with one of these experts the better. Time may be running out on your chance to save your house from your mortgage company or tax liens. If credit card debt is your main problem there are ways to handle that as well.
There are two kinds of bankruptcy you can file. Your Colorado bankruptcy attorney will determine which one will be the best for you. The reorganization of your debt is just one of the things they can help you with. Filings for bankruptcy are up and an experienced attorney will be able to expedite all the paperwork necessary to help you get a better handle on your financial situation.
It’s possible that you may not need to declare bankruptcy. You can count on the Colorado bankruptcy attorney to give you the best advice possible for someone in your particular situation. They craft different plans for every client and the personal touch is one of the many things they offer. Contact a Colorado bankruptcy attorney for their expert help.
Men avoid seeking debt advice until problems build, says new study
Apparently the old antidote about men not being willing to ask for directions may be true after all. A new study commissioned by the group Money Advice Trust found that the majority of men consider seeking help or advice to be a female role, and not only when it comes to directions. The study specifically found that men are much less likely than women to ask for help managing their finances and consolidating debt.
The study confirmed what many in the debt relief industry may have already guessed from practical experience; men often find themselves in greater financial trouble than women as many avoid seeking debt counsel until creditors are knocking on their door. When debt begins to build up, it’s important to address the problem immediately instead of waiting until it becomes too large to ignore. Money Advice Trust wanted to understand what factors prevent men from seeking professional debt relief advice and how these obstacles could be removed.
Researchers noted that one reason men in the study felt less inclined to ask for debt advice was because they maintained a positive attitude regarding their financial problems longer than the average female participant. Overall, men were significantly more optimistic that they could resolve their economic struggles without professional help.
The study also discovered that male participants placed high value on feeling in control of their debt issues. For many, handing their finances over to a third party advisor would mean sacrificing this sense of control and relying on another person’s expertise.
Some men also simply did not understand the numerous debt relief options available. They tended to view debt consolidation companies suspiciously and didn’t know how to find out which organizations are trustworthy and legitimate.
When anyone, male or female, ignores their debt issues, the bills will simply continue to pile up. Contacting an attorney who can help secure bankruptcy protection or pursue a debt relief plan may seem like an intimidating step, but it is well worth the effort to protect your future financial stability.
Source: UKPA, “Men ‘less likely to seek debt help.’” 27 March 2011.