Managing Debt and Personal Finances

Getting Student Loans Out of Default: Consolidation or Rehabilitation?

If you are in default on your federal student loan payments, federal law provides two very powerful options for getting out of default: rehabilitation and consolidation. Most lenders will offer both to you, with little explanation of the pros and cons of each. But there are differences between the two,

Deficiency After Car Repossession: Will I Still Owe Money?

If your car lender repossesses your car, truck, van, motorcycle, or another vehicle, you might still owe on your vehicle loan if the lender took reasonable steps to sell the car for what you owe. The money owed after a car repossession is known as a “deficiency.” If a court issues a deficiency judgment, the lender can collect the money you owe for the car repossession deficiency using a wage garnishment, bank levy, or property seizure.

Dealing With a Deficiency Judgment After Car Repossession

If your car has been repossessed and the lender sells it for less than the amount owed on the loan, the lender can go to court and obtain a deficiency judgment. A lender can take steps to collect the deficiency judgment against you even though the car was repossessed.

When a Judgment Creditor Requests a Deposition, Documents, or Written Answers

If a creditor gets a judgment against you, it will then take steps to collect on that judgment. The creditor can collect by garnishing your wages, or selling some of your assets or property. Before the judgment creditor does this, it must first find out whether you are employed, how much money you make, and what assets you own.

When the Creditor Gets a Lien Against Your Property

A creditor who records a lien property gets an interest in the property, which improves the creditor's odds of receiving payment for a debt. For instance, if a creditor has a lien on property you own, you’ll need to pay the creditor before selling the property or refinancing it, and the creditor might even use a lien on house property to force a sale of your home.

Deficiency After Car Repossession: Will I Still Owe Money?

If your car lender repossesses your car, truck, van, motorcycle, or another vehicle, you might still owe on your vehicle loan if the lender took reasonable steps to sell the car for what you owe. The money owed after a car repossession is known as a “deficiency.” If a court issues a deficiency judgment, the lender can collect the money you owe for the car repossession deficiency using a wage garnishment, bank levy, or property seizure.

Should I ignore a debt collector's calls and letters?

If you can’t pay your debts and the debt collectors are calling, you likely want to know if you should ignore the debt collection calls or call the debt collectors back. Ignoring debt collector's calls and letters is a strategy that works if you're judgment-proof or plan to discharge your debt by filing for bankruptcy. If not, consider developing another debt payment strategy before speaking with debt collectors or responding to calls and letters.

Will a Chapter 13 Bankruptcy Fix My Credit Score?

The decision to file for chapter 13 to fix credit can be a difficult one for people who want to do more than pay down their debts. However, the decision shouldn’t be a hard one because chapter 13 can fix credit. Once people have good credit, they can obtain better interest rates and loans. Credit Scores

Questions to Expect at the 341 Meeting in Your Bankruptcy Case

During your bankruptcy case, whether you file under Chapter 7 or Chapter 13, you will have to attend a meeting with your creditors and the bankruptcy trustee in charge of your case. Find out what questions the bankruptcy trustee must ask you, and the topics the trustee and creditors might ask about during the 341 meeting of creditors.

Documents Needed For The Meeting of Creditors

Whether you file for Chapter 7 or Chapter 13 bankruptcy, you must attend a mandatory hearing called the meeting of creditors (also called the 341 hearing).