Medical Malpractice Attorneys - Virginia Beach, Virginia

The credit counselors primary source of income comes from creditors, mostly credit card creditors. Ask the credit counselors if they receive any of their funding from creditors. Since their primary funding is from credit card creditors, their loyalty is to the credit card creditors. The IRS has disqualified several credit counseling businesses claiming to be œnot for profit and found they were instead disguised collections agencies for the credit card companies. Since their income comes from credit card companies, these credit counseling companies will tell you they are unable to help you with mortgages, car, student loan and tax payments, which are probably your largest debts. They also cannot help you with judgments or even stop creditors from getting judgments. A bankruptcy can help with more than just credit card issues.

If you use credit counseling to pay your bills for you, this information will be reported on your credit report. Potential new creditors will believe that by using credit counseling help, you are not responsible with credit and will deny you further credit. Therefore, using this service will not "protect" your credit.

If you use credit counseling to pay your bills for you, you will be late with your payments and you will be charged late fees. The late payments will be reported on your credit report. Most of our clients see no reduction in the amount they owe the creditors after paying several thousands of dollars to credit counselors. They also see their credit scores plummet.

Credit counselors cannot force a creditor to accept a proposal. There are always some creditors who will not work with the credit counselors, and the creditor will sue you instead, leaving you with a judgment lien on your home, your name in the paper, garnishment of wages, all which are worse than a bankruptcy. Also, if creditors do agree to reduce the amount owed to them, they will file 1099 statements with IRS and the IRS will consider the savings to you as income for which you will need to pay additional income taxes.

Two years after filing bankruptcy, you can qualify for a normal home loan with competitive interest rates if you keep your credit clean and have the income to support the payments. Bankruptcy can actually improve your credit in some cases.

Since credit counselors loyalty is with the credit card companies, credit counselors will recommend that you use a 401K or take a 2nd mortgage or refinance your home or borrow money from relatives to pay off credit cards. You thereby unnecessarily put your retirement, home and relationships at risk. Your 401K and the equity in your home are protected in bankruptcy.

Credit counselors will encourage you to work a 2nd job which will further increase the stress of your family and then when you decide you want to file bankruptcy, under the new bankruptcy law, you could be forced to work the 2nd job for an additional five years.

Several credit counseling businesses are completely fraudulent and will simply take your money, keep it for themselves, never pay creditors a dime, and offer no help whatsoever. Basically anyone can call themselves a credit counselor.

If a credit counselor is not supported primarily by creditors, then the fees of a legitimate credit counselor will be between $3,000 to $10,000. This will not include the money needed to pay off the creditors.

If you need to file bankruptcy, credit counseling will not work, it will just take precious resources and you will still need to file. Credit counselors exist because they take advantage of consumers unrealistic fears of filing bankruptcy.

FAQs

Q: Will I lose my home if I file bankruptcy?
A: Not if it has less than $150,000 in equity, and if you can afford to make the regular payments. If you are current on your home mortgage payments, and if you

can still afford the regular payments under your current mortgage contract, bankruptcy will not affect your home.

Q: Will I lose my job if I file bankruptcy?
A: Your employer will usually not let you go simply because you file for bankruptcy. If you are frequently late to work, lazy, or don't meet your employers deadlines or

your bosses expectations, then you have reason to worry. The bankruptcy code has provisions which make it illegal for certain employers to fire you merely because you have filed for bankruptcy relief. Speak with your attorney to see if the provisions of 525 apply to your employment.

Q: Will I lose my car, truck, or van if I file bankruptcy?
A: If your vehicle is free and clear, is worth less than $5000, and you have lived in Arizona for more than 2 years, then your vehicle is protected under the Arizona

Personal Property Exemption law. If you are upside down on you vehicle loan, current on the payments, and it is fully insured, there is very little risk of losing your

vehicle in a bankruptcy. Even if these scenarios don't apply to your situation, most clients can keep their vehicles in a Chapter 13 repayment plan if they can afford to

pay for the vehicle otherwise.

Q: Can I keep any credit cards during my bankruptcy?
A: When you file a bankruptcy you must list all your creditors. Once the credit card

company is aware that you have filed bankruptcy, they will cancel your credit privileges. Even if your card has a zero balance, most major creditors regularly check the credit report of their card holders. When they become aware of your bankruptcy proceeding, they will usually revoke credit privileges.

Q: Will I ever be able to get credit again?
A:Sooner than you think. Long before you can really afford it. Credit has not been a blessing in your life in the past. It would be best to ask, "after all this financial nightmare is over, will I have educated myself enough to understand the true cost of credit, and will I have developed the necessary attitude and discipline to live content on less than I earn, save for future purchases and needs, and prepare for my future by taking control of my own financial destiny". Just a thought. Will my employer be notified that I filed bankruptcy?

Q: When will my creditors stop calling me?
A:The obvious answer is, once you have paid them the money that they believe that you owe them. The practical answer that you are looking for is, once you hire our office by returning the filled out client questionnaire, you may refer your creditor to speak with our offices. There is some protection against aggressive collection agencies under the US Fair Debt Collection Practices Act. But alas, this is far too complicated to try to explain in a FAQ. See a competent bankruptcy attorney for an explanation of your legal rights under the Act. Will I have to attend any hearings at court? There is an administrative hearing that is called the "First Meeting of Creditors" that you will be required to attend. Your attorney will be present with you at the hearing. If your case has been prepared properly, this hearing will be very short and quite painless. Hire the right attorney and rest easy about this hearing.

Q: Will I go to jail for not paying my debt?
A:No. Not unless the debt is for doing something illegal. Owing a debt that you simply cannot pay at this point is not a crime. There are no longer debtors prisons in the United States. Bankruptcy is a system for honest debtors to get a fresh start. You should be okay.

Q: Will I lose all my assets if I file bankruptcy?
A:You may protect exempt property in a Chapter 7 proceeding, and usually all your property in a Chapter 13. This is a very case specific matter and is best discussed with a competent bankruptcy professional.

Q: How often can someone file a bankruptcy?
A:Under current law you are not eligible for a discharge in a Chapter 7 case filed within 8 years of the filing of a previous Chapter 7 which resulted in a discharge of debts.

Q: How long does a bankruptcy take to complete?
A:Typically a Chapter 7 will require about 6 months for a discharge to be entered, start to finish. This is of course dependent upon the type of case, the facts involved, the actions and pleadings of your creditors before the court, and how well the case is prepared and handled. A Chapter 13 case will run anywhere from 36 to 60 months, depending upon the case. Most Chapter 13 cases are running 60 months under the new 2005 bankruptcy laws.

Q: How long does a bankruptcy remain on my credit report?
A:The law allows it to remain on your credit report for 10 years. A Chapter 13 will usually be removed from your report by the credit bureau after 7 years from the date of filing.

Q: Will all my debts be discharged if I file bankruptcy?
A: Not necessarily. See the explanation of debts not discharged in bankruptcy.

Q: What does it cost to file bankruptcy?
A:This depends on the type of proceeding that your case requires, the complexity of your matter, and the amount of work required as a result of your creditors actions in the proceeding. Generally, a Chapter 7 will cost in the neighborhood of $1500 to $1800 plus costs. More if there is a business involved, less if the debtors are living on Social Security and have a good explanation of where the debt came from. "I have a Gambling Addiction" is not a good explanation. "I was unexpectedly hospitalized for 2 weeks with a heart condition" is more what I meant.

Q: Can I pay my fees in installments?
A:Yes. But all fees must be paid before a Chapter 7 proceeding will be filed. If your facts call for a Chapter 13, the majority of your attorney fees can be paid over time after the case is filed, through the over court payment plan set up to repay what you can to your creditors.

Q: Does my spouse have to file bankruptcy if I do?
A:Not necessarily. However, if your spouse is legally liable on a significant amount of the debt, it usually makes sense to get a discharge for both spouses at the same time. This is definitely something that you will want to discuss with your attorney after they have all the relevant facts in your case.

Q: What happens to my spouse's credit if I file bankruptcy?
A:Your spouse will not have your bankruptcy listed on their credit report as having filed a bankruptcy themselves, however, it can show up on their report as "this account in bankruptcy" for any joint accounts that they have with you.

Q: Will filing bankruptcy stop a wage garnishment?
A:It can. When a bankruptcy is filed the court issues an automatic stay of all legal proceedings, including an order for garnishment of wages pursuant to a civil judgement. However, some garnishments will survive the stay issued by the bankruptcy court. Child support and Alimony payments may continue to be withheld from your pay in spite of the bankruptcy order.

Q: How does bankruptcy stop a foreclosure?
A:When your mortgage lender files a notice of trust deed sale on your home or business real estate, they are demanding that you bring the payments and all defaults current. A Chapter 13 has the ability to stop the foreclosure sale from occurring, if you can afford to catch up your mortgage arrears in a plan proposed to the court, and if you can afford to keep your regular payment current during the plan term. See the information on Chapter 13.

Q: Can filing bankruptcy help me save my marriage?
A:Maybe. If you and your spouse are typical, the stress relating to debt, creditor calls and threats, and loss of sleep, will have a very real effect on your health, marital communication, and other relationships. Personally, my ability to keep my job to provide for my family, my health and well being, and my marital and family relationships are always more important than my credit rating. Come in and see what we can do to help you take control of your life!

Q: Will filing bankruptcy help me lose weight?
A:If you believe that adequate rest, proper diet, and less overall stress will help you lose weight then the answer is yes. I do. Maybe this is a question for your family physician.

Q: Will I grow a third eye in the middle of my forehead if I file bankruptcy?
A:No. Not only that, but you will not develop any other unnatural disorder that will make you a social leper. It is important to pay bills that you owe. There are circumstances which make this impossible in spite of our best intentions. This is why bankruptcy laws have been written. This is why most of our clients are able to discharge the majority of their debts and get back to living as normal a life as possible.