As we all know, US Student loan debt has surpassed the $1Trillion mark – now exceeding the combined total of credit card and auto loan debt which comprises 6% of our national debt – the total GNP of South Korea. In 2013, two thirds of undergraduates left school owing more than $35,000 in debt. Those grads continuing on to medical school can expect an additional debt load of over $166,000 and those who choose law school can expect to an additional $100,000. The mind numbing statistic is that 50% of that Trillion debt is either in default, forbearance or deferment. In other words – one out of every two of the 37 million American borrowers is not repaying their loans. In areas like the Great…

Here are some interesting statistics just released on who is actually files bankruptcy in 2014. Women file bankruptcy more than men by a continually narrowing margin. In 2013, 52 % more women filed than men – but that gap is narrowing at a rate of about 1 % a year. The age demographic is shifting to an older population. Almost 56 % of filers were between the ages of 35 and 54. More people older than 54 file bankruptcy than people younger than 35. 72 % of filers are Caucasian; 11 % are African American; and, Hispanics make up the third highest filing ethnicity at 9 %. The number of filers with College degrees and Graduate Level degrees has steadily increased to 57 %. 38%…

THE FAIR CREDIT REPORTING ACT The Fair Credit Reporting Act requires creditors to furnish complete and accurate credit information to the credit reporting agencies. If you have reaffirmed a debt and you are making timely payments to your creditor, the creditor has an obligation to accurately report your payment history to the credit bureaus. If they fail to do so, you are potentially entitled to recover statutory damages, as well as any actual damages you may have sustained as a result of diminished credit score. Unfortunately, it will be necessary for you to hire a lawyer to file a lawsuit to recover these damages. In other words, you will have to spend money before you are able to recover that money and any other additional…

Bankruptcy provides the benefit of allowing you to walk away from a huge amount of debt and other obligations that you cannot afford. You are set free from debt so that you can get a fresh start and rebuild your life. W.C. Fields once said, “There ain’t no such thing as a free lunch” and he was right. Here are a few things to keep in mind when you file your bankruptcy: 1.  Don’t expect your lawyer to do all the work.  You have to provide certain documents and other information to your lawyer so that they can accurately and adequately fill out all of your forms, schedules and statements. Bankrupcty is a collaborative effort – that means that you have to participate. 2.  Make…

Politics is in every breath that you breath. And, politics is in every relationship that you maintain. How do you master human relatsionships? Here is a portrait of a master of human relations: 1.         They will seem simple, but they are wise. 2.         They will be humble; but they will be able accept their achievements for their true worth and not as something that makes them better than others. 3.         They are genuinely interested in others. 4.         They are honest in their business dealings and their personal life. 5.         They will not involve themselves is in gossip and slander. 6.         They will give credit and praise to others. 7.         The will be patient and kind. 8.         They will be fair and just. 9.         They will…

The first thing that needs to happen is get your discharge. Keep a copy of your Discharge Order with your important papers – this is one of most important financial papers in your files. What has been surprising to me is the number of clients that continue to treat their mail liked they did before they filed. It all ends up in a pile and the correspondence from the US Bankruptcy Court is treated like other junk mail. PLEASE treat every letter from the Bankruptcy Court with care. Open it and call your lawyer if you have any questions. Keep all of those letters in one place. And – for sure – keep your discharge and put it in a special place where you can…

My bankruptcy clients understand one very clearly: You will need to re-establish your credit after your bankruptcy. Make some life changing decisions as to how you handle your finances. Maintain a budget. Don’t dwell on the past – only look forward, Remember, if you try to drive your car while looking in the rear view mirror – you are going to crash. Reset your mental focus and focus on your personal financial goals and set a timeline for achieving them. Goals without a timeline are pipe dreams. Here is a 3 Step Strategy that works. 1. Budget. Live off a percentage of your income. Pay your bills or make your payments early and on time. Budget everything: your time, your talent and your money. 2….