Karra L. Kingston Esq.

Don’t Ignore a Debt Collection Lawsuit

If you have received a summons or complaint regarding a debt collection lawsuit for a credit card or other debt, you can’t ignore it. A lawsuit from a creditor will not go away if you ignore it. Further, ignoring a lawsuit can ruin your credit and put you into a much worse financial position. Ignoring a debt collection lawsuit can do a lot of damage to your credit score. Moreover, creditors can enforce a judgment for up to 20 years in New York and New Jersey. This means that once a creditor gets a judgment against you, they will be able to garnish your wages, freeze your bank account or put liens on your property.

Can I Not Include a Credit Card in My Bankruptcy

Many individual’s who are in debt, consider filing bankruptcy. One common question that we get is whether they can keep a credit card out of their bankruptcy. Many consumers are under a misguided impression that they are allowed to pick and choose which credit cards they want to include in their bankruptcy. Under the Bankruptcy Code, debtors are required to list all of their debts in their bankruptcy petition. This includes all debts from any sources (ie. tax, student loans, credit card, personal loans, medical bills, etc.)

Is Debt Settlement or Bankruptcy Worse For Your Credit Score

People who are struggling financially often look for different ways to help them get out of debt. Debt settlement and bankruptcy are two of the common tools consumers use to help them get out of debt. Many people wonder which tool is better to help them get debt relief. Financial hardship can cause immense amount of stress. This article will explore which option is best.

What is Bankruptcy
Bankruptcy is a legal way to help people get out of debt. A bankruptcy allows you to eliminat eyour debts. When most people file bankruptcy, they usually want to file Chapter 7 bankruptcy. A Chapter 7 bankruptcy can get rid of medical debt, unsecured loans, credit card debt and even some tax debt. A bankruptcy can stop debt collectors from coming after you. If you are unsure whether you qualify for bankruptcy, it is best to speak with a Staten Island Bankruptcy Lawyer or New Jersey bankruptcy lawyer who can point you in the right direction.

What is Debt Settlement?
Debt settlement is where a company negotiates a debt for a lesser amount than you owe. A debt settlement company will work with your creditors to come up with an agreeable amount. These payments are referred to as settlements. Creditors will allow you to either make lump sum payments or spread the payments out overtime. More often, consumers don’t have enough money to make a single lump sum payment so they will be forced to make payments overtime. When you sign up with a debt settlement company, you will put money into an escrow account to pay your creditors. The objective is that as the escrow continues to build, the debt settlement company will use this to offer settlements. Debt settlement companies will tell consumers that to negotiate settlements with creditors, they will be required to stop making any payments on their cards. Keeps in mind, that as the debt continues to fall into a delinquent status, it will be reported to the credit bureaus. This will cause a major impact on a credit score.

How to Cancel a Debt Settlement Contract

Can I Cancel My Contract With a Debt Settlement Company

Many clients come to use seeking to file bankruptcy whom have entered into a contract with a debt settlement company. Many times, people believe that signing up with a debt settlement company can help them get out of debt and have little impact on their credit score. Many assume that debt settlement won’t hurt a credit score as bad as a bankruptcy would. This is false. Credit card companies won’t even negotiate debts until you have fallen behind atleast 90 days. Debt settlement companies offer to negotiate debts for a lump-sum payment for a fraction of the price. However, they fail to tell consumers that as their accounts continue to go into delinquent status, the impacts on their credit score can be severe. Debt negotiation can take anywhere from 36 to 48 months. This is almost three years of accounts being in delinquent status. During this time interest, fees and penalties continue to accrue. Most consumers can’t keep up with these payments and thus, never make it to the end of any debt settlement plan.

Debt Settlement Companies What They Hide

When you find yourself struggling to pay your credit card bills or falling behind on debt, it can seem overwhelming. It is a good idea to find a bankruptcy lawyer who can give you the proper advice. The worst thing you can do is continue struggling, and not seeking out any help to manage your debt. If you are facing debt, there are a lot of good resources on our website to help you decifer which route to go. Our Staten Island bankruptcy lawyers and New Jersey bankruptcy lawyers can help you, by giving you a free consultation. This article will explain what debt settlement companies do and what you need to know about entering into a debt settlement program.

Debt settlement companies are not the same as credit counseling companies or debt lawyers. A debt settlement company will work with your creditors to negotiate a certain portion of debt you will have to pay back. Debt settlement companies won’t tell you that for your credit card companies to work with them, you will have to fall behind on your bills. This means that even though you may not want to file bankruptcy, because your worried about your credit score, debt settlement will have the same impacts as bankruptcy. As you continue to be late on your monthly payments, late fees, interest and penalties will continue to accrue. When you have fallen far enough behind the debt settlement company will contact your crediors and settle for a percentage of the total debt you owe. Keep in mind, that as your accounts go into delinquent status, you run the risk of having credit card companies suing you and getting judgments against you. Once a judgment is filed against you it can last for up to 20 years. Moreover, to enforce a judgment creditors will garnish wages, freeze bank accounts, and put liens on any real property.

Fair Debt Collection Practices Act Lawyer

Stop the Enforcement of a Judgment Through Bankruptcy

Many individuals who are behind on their credit card bills are served lawsuits by debt collectors. Many times people fail to answer these lawsuits in hopes that the creditor will go away. Unfortunately, creditors will not just go away. When you don’t answer these lawsuits creditors can get a default judgment against you. These judgments can last up to twenty years.

When this happens a wage garnishment can be initiated. A wage garnishment tells your employer that they must withold a certain amount of money from an employee’s check. This money will then be sent to the creditor to satisyfy the judgment.

Filing Bankruptcy in Staten Island, New York

Staten Island is a special place to live, it is the only borough that is not connected to the New York City subway system. However, the free ferry allows a fairly easy ride for individuals living in Staten Islanders to commute to New York City. If you are overwhelmed with debt and live in Staten Island, you are not alone. Many individuals with debt file a Staten Island file Chapter 7 bankruptcy to help them get out of a financial rut. Recently, the contractor who was supposed to complete the Lighthouse point project on Staten Island filed bankruptcy. Bankruptcy is not an easy decision, but it can help you if you are in debt. Filing bankruptcy in Staten Island can get you back on the right financial path. If you have faced divorce, medical issues or job loss filing bankruptcy in Staten Island can make things better.

Congress created bankruptcy laws to help people who fell into unfortunate circumstances, a way out. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most common chapter that individuals file. Chapter 7 bankruptcy in Staten Island takes 4-6 months to complete while a Chapter 13 bankruptcy takes 3-5 years to complete. Both types of bankruptcies, allow individuals to get back on their feet. The difference in a Chapter 13 bankruptcy vs a Chapter 7 bankruptcy is that your creditors are paid back in a repayment plan.

How Do I File a Chapter 7 Bankruptcy with No Money?

When clients come to my office and are looking to file a Chapter 7 bankruptcy, they are normally struggling with money. Many individuals ask me how they can pay lawyers fees and filing fees to file a bankruptcy, if they can’t pay their credit card debt. I always tell my clients that if they want to file bankruptcy, we can work out a bankruptcy payment plan to help them.

Credit Card Debt Basics and Bankruptcy

In an economy where the coronavirus is dominating headlines, people are out of work and unable to pay their high interest cred cards, debt still remains one of the largest issues that consumers struggling financially face.

Credit card debt, divorce and medical bills are some of the biggest reasons consumers are forced to file bankruptcy. If you are struggling to make your minimum credit card payments, you are not alone. Most people in New York are strugging with large credit card bills every day.

When A credit card account has been delinquent, or unpaid, for more than 180 days, banks will charge off this debt. You may see something on your credit report that says “charge off” with a $0 balance. Many assume this means that the credit card companies are letting that debt go. This is abosultely wrong. When a “charge off” is reported by the credit cureaus it means that the debt has been sold off to a debt collection who will call, harass and even sue you.

How To File Bankruptcy In Staten Island, New York

To determine if you should file bankruptcy in Staten Island, you will need to determine where to start. Karra L. Kingston Esq. can help you and give you an overview of the bankruptcy processs. Our bankruptcy lawyers can walk you through the process and provide you with great resources to help you get out of debt.

Month: March 2020