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Credit: What's the real story?

Most viewers of this page will not have the best credit, if they have any credit all! That's why you're here and we have some great news for you. You might think that you don't need credit. Have you every called the phone company to order service? Ever wonder what they are doing when they take your order and then put you on hold? You would be surprised!

One of the largest credit reporting companies in the USA sold all of it's credit history on most people to utility companies.

Now! Have you ever wondered why the utility company wants to know your mother’s maiden name? Do you think that they are just real friendly? They are verifying your identity and checking to see you have paid your past utility bills.

This is just one way to showhow your credit history is used, even if you don't have a credit card. It's important to know how people are using this information because this information can affect your life in many ways.

When you file bankruptcy using federal laws, does that hurt your credit? Well, chances are your credit is hurt badly to begin with and if you do nothing, your credit history will continue to get worse, not better. When you use federal laws, it stops the aging process. By that we mean that those bills that are 3 months old, 5 months old, or more will never age after the paperwork has been filed with the courts. How does this affect you? Stopping the aging process means that your credit report will not show a long history of delinquency. So, in that sense, you can put a stop to the aging of bills. That's good!

Of course, it's better to repay everyone as originally agreed, but not everyone can do that. We’re here to help those that just can't.

Let's say that you are thinking about getting rid of all your bills using bankruptcy. Does that mean that you will never have credit again? No, not at all! Once we have filed your paperwork using Chapter 7 bankruptcy and have completed the process, which is approximately 90 days, you can get new credit quickly, if you want it.

Let's say that you need a car to get back and forth from work. Your newspaper is full of car dealers who want your business. Why would a car dealer want your business after you file a bankruptcy that gets rid of your bills and financial obligations? First, the car dealer knows that you now, have NO Bills, except living expenses. You’re out of debt or nearly so and you most likely will not be in this situation again for some time. Second, he's in business to make money, as we all know. Sure, he might charge you a little extra interest and down payment, but wouldn't you if you were him? It's a small price to pay to get what you want and to start establishing new credit immediately. Third, if you don't pay him, he knows he can repo the car, sell it, and make even more money.

Why wouldn't this person be anxious to put you into a nice car? Just open your newspaper and look at the car dealer ads. What you will see are ads that say things like: “Bankruptcy - No Problem.” When you use federal laws to consolidate your bills under Chapter 13, it's a different story. The car dealer knows that until your Chapter 13 case is complete, you are on a budget with most of your spare money going to repay part of your old bills. He also knows that if you don't make your monthly Chapter 13 payment, your case will get dismissed, and then every bill collector that you owe money to can collect. That makes you a real risk in his book. Still, there are car dealers who will sell you a car even in Chapter 13 but you may need a co-signer.

Individuals in a Chapter 13 bankruptcy case can get credit again, but generally, they must wait until their case is complete. With Chapter 7, their remaining debts will be discharged.

The rules in Chapter 13 require that any changes in your budget, like the purchase of a new car, be approved by the court. The idea is that your Chapter 13 trustee and the court want to make sure you don't take on any big, extra debts that might make it impossible for you to successfully complete your Chapter 13 plan. Think about it. This is really for your protection.

We discuss all of this and more with you when you come in for your first FREE Confidential visit.

Some people are worried about a security clearance, military standing, or their job. They should have concern! If they are behind in their payments, they should move quickly to get a jump on the collection process. You can go a long way toward protecting your family, job, reputation, and future credit but only if you get good, sound legal advice before things get worse.

There are numerous ways to deal with debts and we can't go over all the options here, but rest assured that answers to your debt questions are only a FREE Debt Consultation away.

The quicker you get answers, the quicker you can start re-building your credit.

Remember this: the first step in re-building your credit is to eliminate some debt.

Call today to set up your totally FREE Debt Consultation! We can help! Call toll free 504-322-1634