Charlotte Attorney's Informative Blog

By Bankruptcy Attorney 

I frequently get get this question by potential clients and I do my best to cover all basis, says Charlotte Bankruptcy Attorney, Victorianne Maxwell of Maxwell Law Firm, PLLC.

When you fail to pay your credit cards the following can and normally occurs:

1. Your credit score will take a hit once the credit card companies report your payments late or delinquent for thirty (30) days or more.

2. Eventually the account will be closed. The closure of an account by a creditor  is very negative and further harms your credit score.

3. Your account will either be referred  or sold to a collection company. If the debt is sold to a collection company there is a strong possibility that collection will also be reported a second time by the collection company. Because it is a separate event, the collection company will be allowed to do this.

4. In addition, you could be sued on the debt.  The creditor will file a complaint and have a summons issued and served upon you to notify you of the pending lawsuit. Most creditors and debt purchasers can provide documentation to validate the debt. There a very few defenses to a debt collection lawsuits.  For instance, one is the Statute of Limitations, this is the  period of time the creditor has to file a lawsuit against you  for the collection of the debt. In North Carolina this period is three years.  Once a creditor receives a judgment against you based on the non-payment of the debt, it will also be reported to credit agencies as an additional negative public item. Judgments stay on your credit file for (7) seven years. Creditors can collect on judgments for up to ten (10) years in North Carolina and renew judgments as well.

HOW CAN YOU PREVENT MOST OF THESE THINGS FROM OCCURRING:

1. Debt Settlement: You can settle with the creditor before the account is closed and voluntarily agree to close the account.  You can also settle with the collection agency prior to suit being filed. Your last chance to settle is once the lawsuit is filed and before the judgment has been entered.

2. Bankruptcy: If you have other debts that you would like to take care of this maybe a viable option. You can prevent most of the events here from occurring and or clean up your credit file after a judgment has been entered against you. You should consult with an Attorney for more information about your options.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations

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PROCESS OF FILING FOR BANKRUPTCY: 341 MEETING

BY Maxwell Law Firm

When it comes time to formally file for bankruptcy, you will need to participate in a 341 creditor meeting. Many people find themselves intimidated merely by the thought of it, but the process is not scary or negative in most instances. Instead of a grand inquisition, most individuals facing bankruptcy find that a meeting of the creditors to be simple and helpful.
Although it is called a 341 creditor meeting, there are rarely any creditors physically in attendance. But even though the creditors may not attend the meeting, their presence in known and they are capable of calling future actions once the proceedings have entered the court of law.
However, just because the creditors do not have to be in attendance does not mean that it isn’t critical for the debtor to be in attendance with his or her lawyer (if applicable). The meeting is presided over by a bankruptcy trustee (there will not be a judge in attendance).
This individual will work to ensure that both sides have the correct facts available to them when it comes time to file for bankruptcy in a court of law (but ultimately, the trustee represents the creditors). Additionally, the trustee is appointed to the meeting by the court and has the authority to swear in the debtor.
The 341 creditor meeting is held anywhere from 20 to 40 days after you file for the bankruptcy petition. This meeting is necessary for anyone filing for a Chapter 13 or Chapter 7 bankruptcy.
You are strongly encouraged to seek professional legal representation by a bankruptcy attorney. This is especially true in cases that are complicated, since a lawyer will be able to help you muddle through the legal information to ensure that you are on the right path at all times. If you choose not to enlist a lawyer in your bankruptcy proceedings, you will be representing yourself in the 341 meeting.
During a 341 creditor meeting (More information on what to expect at a 341 meeting), the trustee will first swear you in and then begin the meeting. These meetings are usually short and informal, requiring little more than a prepared statement from you.
This statement should state the reason why you are filing for bankruptcy in addition to a list of all of your debts. After the statement has been read, the creditors are able to ask questions. Since few creditors even attend these meetings you won’t likely be presented with many questions to answer.
After hearing the information in your statement, the creditors are then able to submit any challenges regarding the debts listed in your statement. Although most creditors will not submit any challenges, you may have debts listed that fall in the space between the dischargeable and non-dischargeable categories (see discharging debts).
In the end, a 341 creditor meeting is not meant to embarrass or anger you. The purpose of the meeting is to find all the facts before the case appears before a judge in a court of law.

If you are looking for a  Foreclosure Defense Firm and or a Bankruptcy Attorney in
in North Carolina Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

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REASON # 5 Recent Loss of Employment

BY Maxwell Law Firm

Bankruptcy and job loss are never planned or expected. But in today’s economy a lot of people are having to file in order to save their assets and make sure they can at least take care of their basic needs.

Unemployment Insurance is helpful, it will not be enough to pay all of your expenses. Once you have drained your retirement and savings accounts, you will find it harder than ever to stay current on your bills.

You might already realize that losing your job right now may not be the best thing for your income and for your budget. You can prepare right now to handle bankruptcy and job loss. Bankruptcy is a protection provided to you by law so that you can have certain debts forgiven (discharged) so you have have a fresh start. Bankruptcy and job loss are becoming more frequent, so you don’t need to feel ashamed. Bankruptcy has the same impact on your credit as a foreclosure, but unlike foreclosure it can wipe away most debt and delinquencies on your credit profile. You will most likely be better off after you file for Bankruptcy (Credit score) and financially than before.

If you are looking for a  Foreclosure Defense Firm and or a Bankruptcy Attorney in
Charlotte or Concord North Carolina Area Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

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REASON # 4 foreclosure

BY Maxwell Law Firm
Foreclosure is the Legal process initiated by the lender by which borrower is deprived of his interest in the property, typically triggered by default by the debtor/borrower.

Deficiency- Another ACTION brought Following a foreclosure sale the proceeds of which are not sufficient to cover debt, lender can sue the borrower to recover remainder of debt.

Tax Implications

Borrower may have to pay income tax to IRS for unpaid balance paid to the lender, unless certain criteria are met (see conditions for mortgage tax relief.)

Credit Impact

Foreclosure stays on your credit report for 8 years like any other negative item, making it difficult to buy another home or a car int he near future.

What are your options If you are facing foreclosure
Option # 1 Deed In lieu of Foreclosure-Mortgagor hands over a deed to mortgagee in satisfaction of the debt. First lender must accept this arrangement and they typically do not. This is almost like a voluntary repossession and stays on your credit report just as long as a foreclosure.

Option # 2 Equitable Right of Redemption- Debtor’s right to redeem foreclosed property. Requires full payment of the mortgage debt in it’s entirety. Typically if you are in foreclosure you are not able to do this. Further more the damage has been done to your credit (Missed payments).

Option # 3  Short Sale –Within the lenders control and has the same impact on your credit as a foreclosure.

Option # 4 Bankruptcy–Federal protection from foreclosure and stops all foreclosure proceedings. With this option if you file  and qualify for a chapter 13 you can modify your mortgage loan interest. If you qualify and file a chapter 7 you can catch up on the payments and keep your home and possibly submit a loan modification during the process. Yes Bankruptcy stays on your credit report for the same amount of time as foreclosure BUT you can take care of other debts that you have as well such as unpaid medical bills, tax debt, stop car repossession, and the list goes on.

If you are looking for a  Foreclosure Defense Firm and or a Bankruptcy Attorney in
Charlotte or Concord North Carolina Area Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

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REASON # 2 HIGH CREDIT BALANCES ON NUMEROUS CARDS

BY Maxwell Law Firm

Your credit score is like a numeric grade that’s applied to your credit history at a specific point in time. The credit score is based on the information that’s listed in your credit report. Your credit report includes information about your credit cards and loans. Things like the account balance, payment history, credit limit, and age of the account are listed on your credit report. The credit score is calculated based on a formula that gives weight to different parts of your credit history.

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