Debt Consolidation or Bankruptcy?

On February 28, 2011, in Bankruptcy, by Robbie L. Vaughn, Esq.

“I should have done this sooner.”

Recently, we have had more and more individuals come into our office who have tried to alleviate their debts by hiring a debt consolidation, debt resolution, debt settlement, or some other “get rid of your debt quick” company. Many of them have paid thousands of dollars to these companies.  Most of them have only had one or two, if they’re lucky, debts actually settled.  After we explain how bankruptcy works and the client decides that filing bankruptcy is in their best interest, they almost all say “I should have done this sooner.”

Get a free bankruptcy Consultation!

So, if you’re feeling overwhelmed by your bills and debt collectors are ringing your phone off the hook , it would be wise to obtain a free consultation from a bankruptcy attorney before you hand over what little money you do have to some company with a fancy commercial and/or website.

We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy filings. We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Tpke., Ste. 208, Mineola, NY 11501

Call (516) 858-2620 to arrange a FREE  consultation with a bankruptcy attorney!

How Long Does a Bankruptcy Stay on My Credit Report?

On January 26, 2011, in Bankruptcy, by Robbie L. Vaughn, Esq.

Up to ten Years.

The fact that you’ve filed bankruptcy can appear on your credit report for ten years from the date your case was filed.  However, this does not mean that you can’t buy a house, rent an apartment, get a car loan or a credit card for ten years. Debts discharged in your bankruptcy should be listed on your credit report as having a zero balance. Because bankruptcy wipes out your old debts, you will likely to be in a better position to pay your current bills and make  monthly payments on new debt.

In fact, you may receive credit offers soon after your debts are discharged in bankruptcy. However, it would be wise to carefully consider the terms, need, and affordability of each new credit offer. Wisely using credit can go a long way in helping you avoid future financial problems.

We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, Manhattan) with their bankruptcy filings. We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Tpke., Ste. 208, Mineola, NY 11501

Call (516) 858-2620 to arrange a FREE  consultation with a bankruptcy attorney!

Please visit our Bankruptcy category to learn more about filing for bankruptcy.

Your Credit Score After Filing Bankruptcy

On June 3, 2010, in Bankruptcy, by Robbie L. Vaughn, Esq.

Your Credit Score After Filing Bankruptcy

How does filing a chapter 7 case affect a person’s credit score?

It will usually worsen it, if that is possible.  If you haven’t been paying your bills, your credit score is likely already pretty low and doing further damage should be the least of your worries.  With that being said, we can pull a credit report which will project what your score will be one year after filing bankruptcy. Often, the a person’s credit score is projected to increase one year after they file for bankruptcy.

How does filing a chapter 13 case affect a person’s credit score?

It may worsen it, at least temporarily. However, if most of a person’s debts are ultimately paid off under a chapter 13 plan, that fact may be taken into account by credit reporting agencies. If very little is paid on most debts, the effect of a chapter 13 case on a person’s credit rating may be similar to that of a chapter 7 case.

Obtaining Credit after filing bankruptcy

The fact that you filed for bankruptcy can remain on your credit report for up to ten years. However, there are some financial institutions that solicit business from people who have recently filed bankruptcy under chapter 7. This is likely because it will be at least 8 years before they can file another chapter 7 case and discharge their debts.

Bankruptcy Attorneys in Mineola

As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you.  Contact us at (516) 858-2620 to arrange a consultation with a bankruptcy lawyer.

Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.

According to New York Domestic Relations Law, there are certain Automatic Orders, which shall remain in effect while the divorce is pending in Supreme Court.  One of these Automatic Orders addressed in this statute prevents any spouse from selling, transferring, encumbering, assigning, or removing any property without the consent of the other spouse.  This preserves the ability of the court to make a proper ruling on any and all property that they have jurisdiction over at the time the action is brought.  This section of the DRL also covers such topics as 401k retirement plans, health insurance for spouse and children, running up marital debts, and more.

If you or your spouse have filed for divorce or are planning on filing for divorce and you are not sure if this situation is one you will have to encounter, call The Long Island Family Law Firm of Vaughn & Weber, PLLC, at (516) 858-2620 to speak with a family law attorney!

Please visit our Family Law and Divorce categories to learn more about Family Law and Divorce issues.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan