Thursday, September 24, 2009
You'd better list all debts in your bankruptcy case......
A recent 7th Circuit Case In re: Smith, No. 08-3358 (9/23/09). Appeal, N.D. Ill., E. Div. Affirmed ruled that is was permissible to let 2 civil action cases continue in state court (regarding sexual assault against debtor-physician) because the debtor did not list the debt on Schedule F of the bankruptcy petition. The creditors did not get notice until the debtor tried to transfer the case to the state court bankruptcy calander about 2 weeks before the objection to dischargeability deadline in the bankruptcy case. The instant request was deemed proper because the creditors lacked timely notice of the bankruptcy filing, and the motion to transfer the cases to state court bankruptcy calendar did not give the creditor sufficient notice of the deadline to file an adversary objection in the bankruptcy case.
Tuesday, September 01, 2009
Fixing those pesky problems on your credit report
Here is a frequent statement I hear from my bankruptcy clients when they review their bankruptcy petition before filing:
"That debt isn't mine."
I usually reply: "But it is on your credit report"
I have heard, that over 60% of all credit reports have errors on them.
Some may be as small as an incorrect spelling of a name, or an incorrect address, however, it could be someone else's information, such as a wrong social security number, or worse....someone may have stolen yours and is running up debt in your good name!
Who's job is it to make sure that the information is correct? You guessed it, yours. Bad credit can take years to repair, so don't take this for granted. You should check your credit report each year. The government gives everyone a free copy of their credit report each year, from all 3 of the credit bureaus. This can be found at http://www.annualcreditreport.com
Also, if you have errors on your report, you need to report them right away. At the Federal Trade Commission, they have set out guidelines and instructions to correct these mistakes. Click here to review how to correct your credit report. Here is where you can dispute the credit report errors. The 3 bureaus will investigate, and will respond to you usually within about 30 days. If they do correct errors, they will give you a copy of your cleaned report for free.
Do not wait. If you are trying to get a car loan, or buy a home, every point on your credit report can help you get a better, more affordable loan. Errors can cause your interest rates to be higher, or even disqualify you for the loan altogether!
As always, you can contact me with any questions, especially if you want to know how it will impact your bankruptcy case
"That debt isn't mine."
I usually reply: "But it is on your credit report"
I have heard, that over 60% of all credit reports have errors on them.
Some may be as small as an incorrect spelling of a name, or an incorrect address, however, it could be someone else's information, such as a wrong social security number, or worse....someone may have stolen yours and is running up debt in your good name!
Who's job is it to make sure that the information is correct? You guessed it, yours. Bad credit can take years to repair, so don't take this for granted. You should check your credit report each year. The government gives everyone a free copy of their credit report each year, from all 3 of the credit bureaus. This can be found at http://www.annualcreditreport.com
Also, if you have errors on your report, you need to report them right away. At the Federal Trade Commission, they have set out guidelines and instructions to correct these mistakes. Click here to review how to correct your credit report. Here is where you can dispute the credit report errors. The 3 bureaus will investigate, and will respond to you usually within about 30 days. If they do correct errors, they will give you a copy of your cleaned report for free.
Do not wait. If you are trying to get a car loan, or buy a home, every point on your credit report can help you get a better, more affordable loan. Errors can cause your interest rates to be higher, or even disqualify you for the loan altogether!
As always, you can contact me with any questions, especially if you want to know how it will impact your bankruptcy case
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