Too Much Debt? Here Are Helpful Options!

Finding yourself in debt is no fun. Unfortunately, locating information on ways to get back to a solid financial ground can be difficult and frequently confusing. Hopefully, a few minutes with this article will help clarify the landscape and provide a logical starting point.

If you have a small amount of debt you may be able to take control directly. Often, people will be underwater by only a few thousands dollars and struggling because of a high interest rate. What people often don't consider is that you can call your credit card company directly and ask to change the terms of your debt. Very few people would buy a house or a car without haggling a least a little bit - extend this mentality to your credit debt. Your credit provider will likely be willing to work with you in order to help you avoid bankruptcy. If you go bankrupt they will receive no money so it behooves them to be flexible. Keep in mind that your credit limit will likely be lowered to your outstanding debt amount.

If you are not the do-it-yourself type or have a balance on multiple cards, you might want to call a financial counselor. Such a counselor can assess your entire financial situation and suggest changes to your budget that will enable you to free up money to pay down your credit debt. Often the support of a third party will help you stick to a new financial plan. Credit counselor typically charge a small fee of less than $50.

If your situation is more dire, you might need the help of a credit counseling agency. The agency will contact all of your creditors and negotiate better terms so that you can actually service your debt and not fall further and further behind. In fact, they are often able to cut your interest rates in half or less. Usually, late fees and over limit fees stop as well.

Once a plan is in place, you pay a lump sum to the agency who distributes the amount across all of your creditors. Agencies typically charge a monthly fee of $20 to $40. Expect to be working with the agency for several years.

If your situation is so dire that an agency would be unable to help, you may need to file bankruptcy. This may be the case if you are many thousands of dollars in debt and lost your job. Or perhaps you have hundreds of thousands of dollars in medical bills. Bankruptcy is generally to be avoided so make sure your situation really is unrepairable before choosing this option. However, getting a clean start is better than suffering through the pain of a debt you can't possibly repay.

If bankruptcy is needed, be sure to contact several attorneys that specialize in this area of law. You don't want to be somebody's experiment into a new practice area.

It is common practice for an attorney to offer a free thirty minute consultation. Be certain to ask many questions during this time to make sure you are comfortable with the attorney and the firm. They are going to be dealing with a very personal part of your life and discomfort is not helpful to the process.

Taking action on some level now is much better than waiting no matter what your situation is. Time is not on your side when you have a debt load that you are not servicing well. Pick up the phone and call for help - today!

For more information regarding financial help and bankruptcy visit www.GallerLaw.com.

Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of Galler Law.

Repair Your Credit and Avoid Extra Expenses and Inconvenience

Has life dealt you a poor hand recently causing you to be a bit slow to paying bills - or even missing several payments? If so, your credit score has likely been damaged and is in need of repair. In the worst of situations, you might even be faced with filing for bankruptcy.

It is important to start repairing your credit score as rapidly as possible since possessing a poor score can negatively impact your life in several ways. For instance, you may not be able to obtain a home or automobile loan and if you do secure financing the interest rate will be much higher than it would have been otherwise. A low credit score can also make it more difficult to rent an apartment or even gain employment. Many landlords run credit checks on potential tenants and certain job titles require a check with a good score a requirement for employment. In short, repairing your credit score sooner rather than later can help avoid many headaches and extra expense resulting from higher loan interest rates.

Fortunately, credit repair is something that you can undertake yourself. However, you will need to be exacting and persistent if you are to be successful. First, commit to working on credit repair over the course of a year and perhaps longer if your credit score is severely damaged. Repairing your credit is not something that can be done in a few weeks or months.

The first step is to obtain a credit report from each of the three credit bureaus - Transunion, Experian and Equifax. These bureaus monitor and report consumer credit worthiness to potential lenders. You are entitled to one free report from each bureau annually per federal law. Additionally, you may obtain another report if a creditor takes an adverse action against you.

After obtaining the reports, closely review each of them looking for errors. Common errors are inaccurate personal information, incorrect Social Security number, wrong date of birth, or a prior address listed as your current address. Additionally, it is not uncommon for "closed" accounts to be listed as "open" with the associated debt still weighing down your credit score. Also, you might find that a mortgage or other loan is listed twice. Be vigilant when reviewing the reports since studies have shown that roughly 80% of credit reports have some kind of error or omission.

Should you find any errors, report them to the appropriate credit bureau. Do this by writing a brief letter stating the issue and by enclosing a copy of any supporting documentation. Do not send originals as you need them for your file. Upon receiving your letter, the bureau has thirty days to investigate the issue and reply back to you. If you have not heard from the bureau within thirty days, resend your letter and supporting documentation. If you are correct and an error is found, they are required to adhere to very particular procedures and fix the error.

The second step in the credit repair process is stopping any more damage from accumulating. If you are having trouble meeting your monthly obligations, telephone your creditors to negotiate repayment terms. Often creditors will work with you since they want to avoid having you default on the loan. Perhaps they will extend the amount of time you have to pay back the loan and concurrently lower the monthly payment. Maybe simply changing the due date would allow you to pay on time as the change would allow for improved cash flow.

Finally, close credit accounts that you no longer use and pay down your down credit card bills as quickly as possible. Do not let your total credit card debt start approaching the total amount of credit you have available. For instance, owing $5,000 in credit card debt with a $10,000 total credit line is much easier on your credit score than owing $5,000 with only a $6,000 credit line available. The key factor is how close you are to being "maxed out" and having zero credit available. Your best course of action, however, is to pay off your credit cards each month and not revolve debt month-to-month.

By following these steps, you can go a long way toward fixing your credit and avoiding the inconvenience and expense associated with a low credit score.

For more information and guidance about repairing your credit and bankruptcy procedures, one informative source of information is http://www.GallerLaw.com. Galler Law, an Atlanta GA law firm, specializes in bankruptcy cases.

Posted by WebDrafter.com, Inc. with permission.
Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of The Galler Law Firm.

Pulled Over For Drinking and Driving - What to Do?

It is not a happy moment in your life - the flashing lights of a police car are in your rear view mirror and you have been drinking. This is a very stressful situation and knowing what to do ahead of time can help you manage the moment in the best way possible.

The first thing is to find a safe place to pull over and stop. Next, do not make any sudden moves, stay in your car and keep your hands in plain view. Getting out, reaching under the seat or otherwise moving around forces an officer to infer what your intentions are. What might be an innocent move can be incorrectly interpreted as threatening, leading to an escalation in the officers actions. Once the officer reaches your window, be polite. Being rude or combative is not going to help.

If the officer suspects you to be under the influence of alcohol he or she will ask if you have been drinking. You are under no obligation to answer this question or any others as you have the right against self-incrimination. You may simply state that you have been advised not to answer questions. If you do answer - tell the truth. If you are asked to get out of the car, you are almost certainly going to be arrested.

You might want to consider declining to participate in field sobriety tests as you are under no obligation to take them. Such tests can only work against you as the results are highly subjective and difficult to pass when sober let alone under the influence. Common tests are following the tip of a pen with your eyes, standing on one leg or reciting the alphabet in some fashion. Additionally, you may also be asked to take a roadside breath test (PBT). Frequent advice is to decline this test as well since the devices are very unreliable. Remember all of the roadside tests are designed to gather evidence of your intoxication. Refusing to take them gives the police and the prosecution less evidence to work with and makes their case more difficult to prove.

If you are arrested, you will be asked to take the official state test of either blood, breath or urine. This test will be administered at the detention center or a medical facility. At your expense, you can ask to be taken to an independent medical facility for the test. Failure to take this test will result in the revocation of your license for one year and should rarely be declined. However, if you are were involved in an accident, have a previous DUI or had children in the car you should contact an attorney for advice before taking the state test as it may be in your best interests to decline.

Finally, bear in mind that once taken into custody you are likely being audio and/or video recorded. Anything you say could be used against you. Of course, the best way to avoid all of this stress is to not drive under the influence. Catch a cab, have a friend drive you home - a DUI is expensive, time consuming and very unpleasant to deal with. Altering your plans because you have to much to drink is a small price to avoid the flashing lights in your mirror.

Attorney websites like http://www.Gallerlaw.com are great for researching information and providing insight on topics such as Driving While Intoxicated (or Driving Under the Influence) situations where a lot is at stake.

Posted by WebDrafter.com, Inc. with permission.
Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of The Galler Law Firm.

Bankruptcy - Which Chapter Should I File Under?

It can happen to the best of us. Perhaps you suffer a prolonged or serious illness and have run up large medical bills or perhaps you are laid off and are forced to use your credit cards to pay the monthly bills. No matter how it happens, you are looking at a debt load that you are unable to pay or are getting more and more behind on each month. If you find yourself in this difficult position, you might want to consider filing for bankruptcy.

Personal bankruptcy can be filed either as a Chapter 7 or as Chapter 13. Each are designed to give you a clean slate so that you can build a new life without being hampered by pre-existing debt.

Chapter 7 is what most people call to mind when thinking about bankruptcy. At the end of approximately six months, all of your debt is wiped away with just a few exceptions including student loans and taxes. These debts will survive the bankruptcy and you still be required to pay on them. However, Chapter 7 does eliminate debt where people are most likely to be in trouble such as credit cards and medical bills. The debt is simply discharged and you are no longer liable no matter what happens subsequent to your bankruptcy. Unfortunately, not everyone can qualify for Chapter 7.

Every six months the state's median income is reevaluated and your income must fall below this number in order to automatically qualify for Chapter 7. If your income is above the median, you can still qualify by satisfying a secondary test called the means test that involves digging into your financial situation a bit more.

Additionally, in order to keep your home or car under Chapter 7, your payments must be current. If you are not able to qualify for Chapter 7 as a result of your higher income or being behind on auto or home payments, you would be forced to file Chapter 13.

Chapter 13 bankruptcy is designed for people who have sufficient resources to pay back some of their debt but are simply a few months behind on payments. Payback is facilitated by developing a court approved plan to repay creditors over the course of three to five years. In short, your "important" creditors - mortgage, auto loan, and taxes - are paid in full during the plan and the less important creditors are paid what you are able to pay based on your financial situation. Any remaining unsecured debt such as credit card debts are generally discharged at the completion of the plan.

A bankruptcy is not a decision to take lightly because it will remain on your credit history for up to ten years. Only file for bankruptcy as a last resort since it can make getting loans more difficult and often force you to accept a higher interest rate on loans you are able to obtain.

Additionally, after completing either form of bankruptcy, it is advisable to sit down with a financial planner. A planner will be able to develop a strategy to keep you on sound monetary ground and help you develop good fiscal habits. Take the breathing room the bankruptcy has provided and build a solid financial foundation to last for the remainder of your life.

For more information and guidance about filing for bankruptcy, visit http://www.GallerLaw.com. Galler Law specializes in motor vehicle, worker's compensation and bankruptcy law in the Atlanta, Georgia area and has a list of the information you will need to bring to a bankruptcy attorney if you hire one.

Posted by WebDrafter.com, Inc. with permission.
Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of The Galler Law Firm.

When the Creditors Keep Calling - Bankruptcy is Financially Stressful Enough Without Harassment

Financial instability can be a major cause of stress to a person or family. Being in debt and receiving harassing phone calls and letters can compound this stress. These harassing calls may occur at home and even at work, risking job security. Laws are currently in place to keep these calls from happening and to punish the creditors who do not follow them.

Debt collectors need to follow strict rules when it comes to communication about debt. The calls may not announce the debt to the person answering the telephone and the calls must go through an attorney if one represents the debtor. Any calls should be made between the hours of 8am and 9pm only, and no calls should be made to places of employment if prohibited by the employer. These calls should never consist of profanity, threats, or false representation. If collectors do not adhere to these rules, as well as other stated in the Fair Debt Collection Practices Act, the debtor may be allowed legal recourse.

Bankruptcy will also get these calls to discontinue. During the bankruptcy process, the creditors are contacted and either a plan of repayment or dissolution is reached. An attorney helps file the necessary paperwork for the bankruptcy and also communicates with the creditors as mentioned above. Depending on the type filed, the bankruptcy process contains quite a few steps, which will be made easier with the help of a qualified attorney.

A fresh start to finances can help with stress in many different ways. Bankruptcy may never be an easy decision or a fast path to travel, but it can assist debtors in starting over. Credit counseling is a typical part of the process to help keep the pattern from repeating. All in all, bankruptcy with a proper attorney's guidance can ease a debtor back into the world of financial freedom.

For more information and guidance about bankruptcy issues and considerations, visit http://www.gallerlaw.com. Galler Law specializes in Bankruptcy law and protection.

Avoid Financial Cons Which Will Damage Future Credit History Far More Than Bankruptcy Ever Could

"Debt consolidation for free", "no cost debt relief", "free credit counseling to end credit card debt", or "get out of debt fast" are sales pitches which almost everyone has heard or seen on radio, television, or in print. These pitches should be grouped with all of the other "get rich quick" schemes and pyramid scandals that have prospered in recent decades.

The truth is if it sounds too good to be true, it almost always is. While there are some legitimate debt consolidation companies out there, a large number of them are in fact fly by night operations in which after gaining a customers confidence, exploit and leave the victim in a worse financial state than before. With the proliferation of website businesses, it can be very difficult to determine which debt consolidation companies are legitimate and which are scams.

Because the financial market fluctuates constantly and banking institutions, lending laws, and credit reporting agencies are constantly changing the rules, promises and guarantees of getting out of debt quickly or instant "debt forgiveness" are warning signs to avoid. Debt consolidation and debt reduction is just that, reduction of the amount owed. The debt still exists, but in smaller payments and with lower interest rates.

The key to reducing debt and eliminating debt isn't a magic phone number, but a structured adjustment and manipulation of spending habits which will allow an individual or family to live within their financial means. A large percentage of individuals can find this exceedingly difficult and end up declaring bankruptcy regardless. Many well known and prominent people have experienced this same problem despite having millions of dollars. Bankruptcy has not damaged their financial success.

That is because declaring bankruptcy is not the financial failure of an individual, but the beginning of creating a solid financial base from which to grow and improve upon in order to recreate a sound financial credit history. Again the key is to moderate spending habits after bankruptcy to ensure financial stability in an unstable economy. Banking institutions and credit unions usually have financial advisors on hand. Many bankruptcy attorneys also provide financial advice or can refer individuals to qualified financial advisors to help clients achieve their goals.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

Bankruptcy - Learning Better Spending Habits will Prevent this Financial Do-Over-Agail

Filing for bankruptcy cannot make one better with handling money, but it can allow for a fresh start. When the decision is made to file, a qualified attorney should be contacted. The attorney will help to follow the correct path and assure that the paperwork is completed properly. The first noticeable occurrence is that the creditors will cease calling. This is a result of the bankruptcy petition filed in the courts. The creditors must stop collections proceedings once they receive notice of the bankruptcy petition. If a creditor fails to cease the proceedings, they may be subject to fees and court sanctions. The bankruptcy petition becomes a matter of public record. This is not a confidential process, however, only creditors will be physically notified by the courts.

The next step in the process is a court hearing. This usually occurs a month after the petition filing. The hearing is led by a bankruptcy trustee, not a judge, and is the first meeting of the creditors. The debtor will be under oath for this hearing and is required to answer questions about the previously filed paperwork, assets and debts. Creditors may also ask the debtor questions at this time. In most cases a primary residence and vehicle may be kept, unless a payment agreement with the creditor cannot be reached.

Bankruptcy is seen on a credit report for seven to ten years. While it is an option to receive a credit card after bankruptcy, one must be careful not to fall back in the same habits. Most companies that issue credit cards after bankruptcy either keep limits low or interest rates high to help deter debtors from resorting to past patterns. Secured credit cards are also another option. These cards are backed with money that the debtor has already contributed. In ways, these are much like debit cards.

Bankruptcy can typically not expel student loan debt, unless there are extenuating circumstances. If a student loan was provided by the government, it must be repaid. However, if it is not a loan from a government institution or if the loan would cause hardship for the debtor or debtor's dependents, the loan may be discharged. Alimony cannot be discharged unless the amount provides more harm to the debtor than benefit to the spouse.

Bankruptcy should always be considered a final option and last resort. Bankruptcy should never be seen as an easy way out or a way to cheat the system. It is a court process where debtors with severe financial situations can be relieved of their debts. By having a qualified attorney to help with this difficult process, the choice of bankruptcy should go smoothly.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.