by Paul MankinWhat Is The Right Choice For You Between Bankruptcy And Debt Consolidation?
On behalf of Law Office of Paul Mankin on Thursday, March 9, 2017.
Debt that you cannot pay can be overwhelming, suffocating and completely stifling to your professional and personal relationships. Many people who have debts deal with depression, anxiety and anger issues from the constant stress of trying to pay off creditors. Fortunately, you have options when you decide it is too much to bear and w ant a fresh financial start.
Debt can be the result of a lost job, medical bills from an unexpected illness or injury, or even just simple overspending. You may get offers in the mail from companies that claim they can save you from your debts, but always read between the lines. Getting rid of debt is rarely that simple, and every situation is unique.
What is debt consolidation?
You can combine all your unsecured debts during debt consolidation. This may include medical bills, credit cards, payday loans and personal loans. These payments are combined into one bill so you only pay one creditor every month rather than several. Debt consolidation can help you eliminate mistakes that come from paying bills, such as late payments or incorrect amounts.
Debt consolidation comes in three forms: debt consolidation loans, debt settlement and debt management plans. Debt consolidation is best for those who want to simplify the process of paying off debt, but the debts are not forgiven and must still be paid.
What is bankruptcy?
Bankruptcy is the process by which you repay or eliminate debts through a legal process. Chapter 7 and Chapter 13 bankruptcies are most common for the average consumer. Chapter 7 bankruptcy requires that you liquidate some of your assets to help pay your outstanding debts. Chapter 13 bankruptcy is the process by which you slowly pay back your debts but get to keep your possessions.
How do you know which one to choose?
Debt consolidation may be beneficial for you if you have the income to pay your bills but lack the organization to do so. You may also be required to come up with a large sum up front when you combine your bills. Bankruptcy is an option for those who cannot see the light at the end of the tunnel and fear there is no way out.
As both can affect your credit score and financial future, you should seek the advice of someone who understands the process when you face it. If you are drowning in debts you cannot pay and are considering bankruptcy or debt consolidation, we encourage you to consult an attorney immediately.
by Paul MankinAct Early If You Suspect An Issue With Your Landlord
On behalf of Law Office of Paul Mankin posted in blog on Tuesday, January 16, 2018.
Many landlords treat their tenants fairly, and many tenants follow the terms of their rental contracts. Sometimes, though, there are situations where landlords fall down miserably on their duties. Their negligence may even leave an apartment or house uninhabitable with a lack of heat, an infestation of bedbugs or cockroaches, or a leaky roof, to name just a few examples.
Often, multiple problems occur at the same time. The thing is that, in some situations, these problems may have started with just one single issue. Here is a look at why it is critical for tenants to take action as soon as possible even if they think they are dealing with just one relatively easy problem.
Good landlords tend to stand up in all areas
Quality landlords tend to be good across the board. That is, if they care about your roof leaking, they also care about holes in the windows and bedbug problems. So, if you encounter a landlord who keeps saying he or she is aware of your issue and is looking into solving it but time drags on … and on … then you may have a landlord who does not care about your needs and about the law. Meanwhile, your issue has gotten worse. What happens when other problems pop up, as they almost inevitably will? More landlord ignorance, most likely.
It could be that your landlord has been attentive in the past or your relationship is goodand you want to give him or her a chance to remedy your situation even if it has been too long. Just remember that quality landlords really do take care of you in all areas. It takes just one area of neglect for a landlord to lose credibility. When inaction happens, the original problems worsen and lead to new problems in a sort of domino effect. It might not be long before you are at a point where your apartment is unsafe to live in.
by Paul MankinDon’t Let Bankruptcy Myths Stop You
On behalf of Law Office of Paul Mankin posted in Consumer Protection on Tuesday, December 13, 2016.
If you’re dragging your feet about filing for personal bankruptcy, maybe it’s because you’ve heard negative things about it. Bankruptcy gets a bad rap, which doesn’t make a lot of sense, given that it’s a financial tool designed to help people.
At the same time, some people get the impression that bankruptcy will solve all of their problems and leave them solvent for life. They won’t owe a penny and can just start over with a clean slate. That isn’t true, either. So what is?
Destroying the myths surrounding a bankruptcy filing is an important step in helping you move forward. Trying to manage debt without the appropriate tool is kind of like trying to open a locked door without a key. You won’t get far.
What are some of the myths? Well, you might think that…
- Once you file for Chapter 7 bankruptcy, all your debts will vanish with a loud “Poof!” Nope. You’ll still be responsible for certain things like: alimony, child support, student loans and any debts due to fraudulent activity (not pointing any fingers here).
- You’ll lose everything and be penniless and homeless. No, you won’t have to turn over all of your belongings. Some assets are protected, like your house, your car, clothing-the essentials and more.
- Credit cards and loans will be impossible. No, you won’t have to pay in cash for the rest of your life. You will have to rebuild your credit first and be patient, but you’ll be able to borrow again someday.
- Filing for bankruptcy means you’re a loser. Nope. People usually come to the decision that they need to file for bankruptcy after a series of setbacks. Yes, you may have run up debt, but that’s likely due to major issues like losing a job, suffering an accident or long-term illness, or going through divorce. Filing is a smart choice when you’re stuck with high medical debt that you can’t see ever being able to repay.
- Everyone will know. Quite the opposite, actually. Nobody will know, unless you’re a major rock star or other celebrity. While it’s true that sometimes your filing could appear as a public legal proceeding, who would be reading that obscure page or site, anyway? Nobody you know. And even if somebody nosey did find out, all they’re really discovering is that you’re acting in a completely responsible way. You’re using a tool to fix your financial situation.
Now that you’re armed with more truth than rumor about bankruptcy filings, it’s a good time to contact an attorney and get started. The sooner you file, the sooner you’ll be moving forward.
by Paul Mankin6 Ways To Spot A Predatory Debt Consolidation Offer
On behalf of Law Office of Paul Mankin posted in Consumer Protection on Friday, September 16, 2016.
The vultures appear when an animal begins to struggle. It’s the same in lending and that’s what makes debt consolidation offers so dangerous. There are trusted and wholly reliable sources that consolidate debt but there are many predatory companies who sell their service as consolidation when it’s truly debt management.
Consolidation versus management
Loan consolidation is the combining of multiple loans into a single new loan. Reputable companies who offer this include banks and credit unions.
Debt management is a service where a company negotiates with creditors to reduce your loans. They receive payment from you with the goal of using that money to pay the revised terms of the loan. The company collects your payments with intent to pay a new sum to your creditor when they reach an agreement. Instead of using your month payments toward your mounting debt, it goes into a pool until they have finished the deal, all while charging you a monthly service fee for their help. There is no guarantee your loan will be renegotiated successfully and, if it’s not, you’re back where you started except that you now owe the management company for their “services” and you haven’t been paying down your debt in the meantime.
These predatory companies know when to swoop in for their prey, so here are so clues that you should hang up on a caller.
Common signs of consolidation scam
- Money is requested up front, often as a service fee
- The company uses a P.O. Box
- The company says you can only sue in specific states – and they are not where you live
- You’re asked for a bank account number
- The sales person uses aggressive language or tactics
- The company uses a robocall
by Paul MankinMy Car Has Been Repossessed! What Now?
On behalf of Law Office of Paul Mankin posted in Consumer Protection on Wednesday, June 22, 2016.
It happens more often than you might think. After months, and in some cases years, of making steady payments on a car, it might not seem like a serious offense to put off a payment during hard financial times. But the consequences can come quickly, no matter how dedicated your payment history has been. You might walk out your front door one morning to find your car has disappeared overnight.
Why was my car repossessed?
Car repossession occurs when you are considered to be in default of the loan you took out to purchase your car. The lender with whom you leased or financed your car is generally given a security interest at the time of the financing, which basically gives them the right to have your car repossessed without notifying you if you have done something that they feel constitutes a default. More often than not, the reason is missed payments.
Is car repossession legal?
Your lender and the repossession agents they work with are bound by law to act within the legal repossession specifications of your state. These laws vary depending on your location, so if you feel that the actions taken to repossess your vehicle did not abide by the laws of your state, it will be in your best interest to contact an attorney who has experience in this field. If it is determined that proper procedures were not followed, you might have grounds to reclaim your car or seek financial damages.
The basic rule for companies that would like to repossess a vehicle states that they may not “breach the peace”. There are several examples of what this term can mean. A repossessor cannot:
- Enter your house without invitation
- Threaten to have you arrested or otherwise threaten physical violence
- Commit physical violence or make physical contact with anyone present
- Enter a locked garage or storage building
- Damage your vehicle during the act of repossession
My car is already gone. What should I do next?
In cases where you are aware that you were late or behind on your payments, the timing of the repossession is probably more shocking than the actual repossession itself. But in some states, there can be stipulations built into your loan that allow your lender to repossess your car for things like a failure to keep current car insurance.
Either way, your first action should likely be calling your lender to assess the situation and find out what you will need to do to be back in their good graces. It’s important to do this as soon as you are aware of the repossession. An attorney can help you with this step.
What could happen to my car once it’s been repossessed?
Once your lender has your car, they have the right to sell it in order to recoup the money you still owe on your loan. Lenders are required by law to abide by standard sale procedures, but this doesn’t mean that they are required to sell the car in question at what would be considered the highest price it is worth. When your car is sold at a price lower than the remaining balance of your loan, the difference is known as a deficiency balance, which you are still legally obligated to pay.
The best way to avoid repossession is to pay every single scheduled payment in full and on time. This is your best protection against being involved in the typically messy business of getting your car back and settling your loan, which will usually include additional fees once your car has been repossessed and will leave a black mark on your credit history for the next seven years.
If, however, you feel that you have clear legal grounds to fight the repossession or if you feel that the manner of repossession was a breach of peace, your best option will be to hire an experienced attorney to assist you in pursuing legal action.
by Paul MankinThe Debt Collectors Won’t Stop Calling… Until You Do This
On behalf of Law Office of Paul Mankin posted in Consumer Protection on Monday, March 7, 2016.
In California and across the country, there are very strict regulations about when and how debt collectors can call individuals they believe to be in debt. Yet, debt collectors can be relentless and act outside the law, calling you at all hours of the day, threatening you and causing emotional distress to you and your family. How do you know if your debt collector is breaking the law? And how can you stop them?
What can’t debt collectors do?
Among other things, debt collectors cannot:
- Threaten to harm you or your property
- Use obscene or profane language when talking to you
- Call you at work if you have asked them, in writing, not to
- Call you before 8 a.m.
- Call you after 9 p.m.
- Call repeatedly over a short period of time with the intention to annoy you
- In most cases, contact your family or loved ones to collect on the debt
- Contact you if you have filed for bankruptcy
How can you stop them?
You have a few options:
1. Send a certified letter: You can send a certified letter to the debt collector asking them to stop contacting you. If you do that, they must stop or they can face legal action. Of course, they can still bring a lawsuit against you to collect on the debt.
2. Take them to court: If the debt collector has broken any of the above rules, you can take them to court. You may be entitled to $1,000 for every violation against you. The reality is that some debt collectors won’t stop until you call them out, and an attorney can help you do just that.
3. File for bankruptcy: Finally, if you are facing financial challenges that keep growing, you may want to consider filing for bankruptcy. Bankruptcy stops all debt collector calls — illegal and legal. It can also erase the debt or help make it more manageable.
You don’t have to put up with harassing or threatening calls. Learn more about how to stop debt collection harassment. Speak with a lawyer to get the help you need now.
by Paul MankinThe Top 4 Reasons People Declare Bankruptcy
On behalf of Law Office of Paul Mankin posted in Consumer Protection on Friday, January 29, 2016.
The public myth that bankruptcy is a last ditch effort of irresponsible people to get out of their self-created debt problems is simply not true. Most people who declare bankruptcy are honest people facing tough circumstances. Unfortunately, due to bankruptcy myths and fear that bankruptcy is a declaration of financial failure, many people wait until their financial situation is dire before acting.
If you are facing overwhelming debt, you don’t need to wait to learn about your options. Bankruptcy isn’t failure. It isn’t scary. It may save your financial future.
Here are four of the top reasons people file for bankruptcy.
Reason #1: Medical debt
According to a Harvard University study, medical debt accounts for nearly 62 percent of all personal bankruptcy filings. You may think the majority of people who file because of medical debt don’t have health insurance, but that’s simply not true; more than 75 percent of people who file bankruptcy for medical reasons have health insurance.
The reality is that the unexpected check-ups, ambulance rides, surgeries, medications and other medical expenses add up quickly. Thankfully, most medical debts are dischargeable through bankruptcy. People who face the myriad life changes and stresses related to medical emergencies should not have to also face the lifelong financial challenges that often coincide.
Reason #2: Job loss and pay cuts
Most Americans live within their means. When their means get cut, however, things start to implode. Job loss, pay cuts and bonus reductions can deplete savings accounts and send someone into a financial spiral that is largely out of their control.
Reason #3: Credit card debt from unexpected costs
Beyond medical bills and job loss, there are many other unexpected costs that can arise, from common emergencies such as car trouble to less common emergencies such as fires and storm damage. While most people have insurance, insurance doesn’t cover many of the issues we end up facing throughout our lives.
Reason #4: Divorce and other significant life changes
When two incomes shrink down to one, life gets even tougher, particularly if kids are involved. While divorce itself doesn’t cause bankruptcy, the many financial challenges that can arise during and after divorce certainly can.
Bankruptcy is a fresh start, not a crutch
As you can see, most people who declare bankruptcy are caught unaware by debt. Most people are good people who are simply trying to make ends meet. Let’s work together to destroy the stigma attached to bankruptcy and see people who file for what they are: People like you and me, facing difficult life challenges. People who deserve a fresh start.
by Paul MankinHow To Protect Yourself From False Information On Your Credit Report
On behalf of Law Office of Paul Mankin posted in Consumer Protection on Tuesday, December 22, 2015.
You’d be surprised how many people have false information on their credit reports and don’t even know it. Of course, they find out pretty quickly when they try to get a car loan, home mortgage or credit card and are turned down.
Why does this happen? How can you prevent it from happening to you? And if your credit report has been tarnished by wrong information, how can you clear it?
Why credit report errors happen
Here are a few of the many reasons errors happen:
- Credit reporting agencies use computers. Credit reporting agencies rely on technology to compile information and, as we know, technology doesn’t always get it right. It’s not unusual for someone to find her sister’s debts on her report, or for one economical Bob Smith to find the remnants of a spend-thrift Bob Smith’s bad habits on his report.
- Debts aren’t always erased when paid. Nothing’s more frustrating than finally paying off a big debt only to find out it’s still on your credit report. This goes back to the point above: In a system where computers do a lot of the work, significant errors can – and do – happen.
- Identity theft is becoming a larger problem. If someone steals your identity, you will likely have false information on your credit report. In addition to using your current credit card, criminals may open new credit accounts in your name, all of which will show up on your report.
Four steps to protect yourself from credit errors
More than one third of Americans have never looked at their credit report. Many more don’t take the time to check their reports regularly. Here’s what you should do to ensure the information on your credit report remains accurate:
- Get your free annual credit report. Under federal law, you are entitled to at least one free copy of your report every year. Click here to get your free report.
- Protect yourself from identity theft. Check your bank and credit card statements regularly. If you see any activity that is unfamiliar, report it immediately. Change your passwords monthly, use a credit (not debit) card to make purchases online, only buy from secured websites and keep your eye out for scams (like fishing).
- If you notice an error, dispute it directly with the company. The sooner you contact the credit reporting agency or furnisher, the less of an impact it will have on your life.
- Contact an attorney. An attorney can help you take legal action to remove the wrong information and may even get the credit reporting agency to pay you compensation for your troubles and cover your attorney’s fees.
Do you have wrong information on your credit report? Don’t wait until it is too late to find out. Get your free credit report. Then, learn more by visiting our credit report FAQ page.
by Paul MankinHelp! I Owe Ace Cash Express Money
Help! I Owe Ace Cash Express Money
If you have borrowed money from Ace Cash Express and have defaulted on the loan and are being harassed to pay it, or are unable to pay and will soon default, do not panic. There are some things you can do to attempt to resolve the matter first.
I Owe Ace Cash Express and Cannot Pay the Loan
If you have recently defaulted on your loan, or soon will, contact Ace Cash Express and let them know what is happening and ask if they can work out a payment plan or, if you already have a repayment plan, a new one. Some creditors are willing to work with consumers when they fall on hard times and help them to create a more manageable repayment plan. If they are willing to work with you, be sure that you do not agree to an amount you cannot pay or a time schedule that does not work for you or you only will find yourself right back in the same situation and a second work-out plan will likely not be available.
If a new repayment plan is not available, you can look into refinance options that would allow you to take out a personal loan from another company in order to pay Ace Cash Express. However, if your credit is not good, or you are already in default on the loan, this may not be an option.
If you cannot get a new payment plan or refinance the loan, you may want to consult an attorney who specializes in bankruptcy to explore your options for a discharge under chapter 7 or a repayment plan under chapter 13. This can allow you to either avoid paying all of your unsecured debt or restructure your debt so that you can afford to make all of your monthly payments.
I Am Being Harassed Because I Owe Ace Cash Express
If you have already defaulted on your loan and are being harassed by Ace Cash Express to repay it, ask for a more manageable repayment plan. Negotiating a new agreement, can stop the collection calls and help you avoid further damage to your credit. If you are uncomfortable with negotiating an agreement or one not available, consider consulting an attorney who specializes in debt collector harassment. An attorney can negotiate a new agreement for you and/or advise you of any violations of the law that Ace Cash Express may have committed in their attempt to collect on the debt. If they have violated a law that allows you to collect money from them, such as the Fair Debt Collection Practices Act (FDCPA) your attorney will likely not charge you any upfront fees and take money only if you win.
If you are being harassed because you owe Ace Cash Express, please contact our office at 1-800-219-3577, for a free, no obligation consultation.