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.