Credit Repair Companies and the ECRA

Joint bankruptcy is when a husband and wife file for bankruptcy together or “jointly.” Before you decide on whether you should file individually or joint, you need to look up the pros and cons of the situation as well as, keeping in mind what your ultimate long and short term financial goals are.

The Disadvantages

-    If one spouse filed for bankruptcy earlier he/she cannot file under joint bankruptcy
-    If the husband-wife combined debt exceeds the limit permissible under Chapter 13, you cannot file under joint bankruptcy

The Advantages

-    Saves money on legal counseling fees
-    Each spouse can file for personal exemptions and thereby protect more assets together
-    Collection agencies will not hound one spouse with requests for payment
-    Easier to file for joint bankruptcy than to file separately

Review information carefully for all the advantages and disadvantages of filing bankruptcy through online research. You may find that many terms are different depending on where you live. You also need to contact a bankruptcy expert to receive case specific advice about your financial situation. Be careful when you make this decision since this will affect both spouses credit reports. Your decision should take into account your goals, assets, future financial obligations and the affect this decision will have on both spouses as well as any children in the family.

Source:  Joint bankruptcy – Is this a Good Idea?

If you are filing bankruptcy in Oregon you will need to know to what extent this law will provide relief, and what loans are not covered under this law.

Filing bankruptcy in Oregon is a good option if any of the following statements apply to you:

-    Your bills are too long overdue and you do not have any concrete plans or ability to get any additional income to pay these bills
-    You are unable to pay your mortgage
-    You are unable to make even the minimum payments on your credit card balances
-    You have lost your primary source of income/ job and you do not see an ability to get a new source of income in the near future
-    You have suddenly incurred a huge medical expense

The following debts/ payments due/ financial obligations will not be covered/ exempted when filing bankruptcy in Oregon:

-    Student loans
-    Child support and alimony
-    Fines imposed by the Oregon government
-    Cash advance made within 90 days

Source:  Filing bankruptcy in Oregon – The Pros and Cons

Most people do not really understand the full implications of bankruptcy. The reality is that bankruptcy is not a new bed of roses, although someone in deep financial troubles can perceive this relief as such.

First of all, not everyone will qualify for bankruptcy. After the bankruptcy laws were amended in 2005, there were many sub-clauses (for example, Chapter 7) that would give consumers the ability to redress their debts without filing for bankruptcy.

Monetary Implications Of Bankruptcy

Before you file for bankruptcy you will need to undergo bankruptcy credit score counseling 180 days prior to the bankruptcy filing. You will also need a certain amount of expert legal counseling that may cost you anywhere between $1,000 to $2,000. Bankruptcy is definitely not the cheap alternative, even when you have reached the absolute rock bottom with your finances.

Credit Report/ Score Implications Of Bankruptcy

This is one of the most significant implications when filing bankruptcy as this will remain visible on your credit report to financial companies, employers and anyone else who requests your  credit score report. It will take 11 years before this is removed from the report; and that is a very long time.

It is possible to improve your credit score over time with proper financial discipline and smarter financial choices. However, this a very arduous process and can have lasting effects for years to come. You must always keep in mind your financial goals and the timetable for reaching those goals before deciding which course of financial relief to utilize.

Source:  Implications Of Bankruptcy – Is This Freedom From Debt Worth It?

It is a myth that bankruptcy solutions will cover all financial problems. There are many debts that bankruptcy will not resolve. Before you declare bankruptcy, you need to be aware, which of your debts will not be covered under bankruptcy relief. Some debts that will not be covered are:

1.    Student loans – This loan is not covered by bankruptcy solutions. Hence, if you are in trouble due to your student loans and declare bankruptcy in the hope that this will solve the problem, be aware that this is not true. You will still be liable to pay the student loan back and you will have the report of a bankruptcy on your credit report for the next 11 years. In order to seek relief for student loan payments you should contact your lenders and try to renegotiate the terms of your repayment. Some options are an “income- contingent” repayment plan as well as temporary forbearance.

2.    Child Support -  This is another field that will not fall under the relief of bankruptcy. In the eyes of the law this debt is not going to be relieved without your actual payments. Child support and alimony are not considered debts as much s they are considered financial obligations that do not warrant bankruptcy relief.

3.    Criminal fees/ fines – No bankruptcy solutions will delete criminal fees or fines. Hence, declaring bankruptcy will not resolve such issues. Again, this type of debt is considered unforgivable and thus must be paid by the individual. You can attempt to enter into a new repayment plan but often times you must show the court extreme financial hardship in order to qualify for a change in repayment terms.

Source:  Bankruptcy Solutions – What Is Not Covered Under This Umbrella?

When you are trying to repair your credit score in a hurry, you tend to believe all promises made as they seem to offer you exactly what you want. Beware of such false promises because these are tell- tale signs of credit repair scams. Here are some common tactics used to defraud vulnerable consumers:

1.    Second Credit Report – It is not possible to have a second credit report; not legally.  If any credit repair agency claims that they can avail you of the use of a second credit report, it is definitely a credit repair scam.

2.    Credit Repair Takes Time – There is no ‘urgent’ delivery in this business. If anyone tells you that they can improve your score overnight, beware; you are falling into a credit repair scam trap. Often times what the fraudulent company does is dispute every blemish on the credit report which gives the illusion of a repaired report. However, once the investigation is completed by the credit reporting agency and by whomever the debt is owed, it will be clear that this was a fraudulent attempt at raising the consumers credit report or to eliminate a debt by committing fraud. Remember, any and all actions done on your behalf are ultimately your responsibility and you will  have to face the consequences for illegal actions taken on your behalf. Often times by the time you realize that you have been a victim of a credit repair scam- the agency is long gone with your money and leaves you with no ability to trace them down.

3.    Credit Repair Emails – Are you getting offers via email that seem too good to be true? They are exactly that; they are lies. Be very wary of such emails. Never give any financial information through such emails, or any email that was not initiated by you through a secure and verified website. Also, be very careful as to how and when you respond to emails requesting your sensitive financial information, a copy of your identification or a request for your previous address or your mother or fathers information. Sometimes the simplest piece of information in the wrong hands can cause a catastrophic financial blunder that can be difficult to recover from.

Source:  Credit Repair Scam – 3 Danger Signs

Are you aware of the severity of credit card fraud? There are an estimated 1 trillion credit card holders in the world today – as this is the most convenient way to shop in this technological age.

Credit cards are used for a large gamut of services – not only for buying goods and services online and offline. In many places, credit cards serve as proof of ID. Paypal, for example, requires you have a valid credit card before they approve your account. With the immense acceptance and popularity of this mode of payment came the potential for credit card fraud.

Be aware that banks have introduced a second and third layer of Payer Authentication System PIN that will protect the payer at a different level while paying for goods and services online. However, credit card fraud is still possible during offline transactions. How do you prevent that? Here are some tips to help keep consumers aware of the transactions on their accounts before a statement is mailed out:

1.    Check when signing the counter slip that the amount is correct. Also ensure that you are not inadvertently signing two copies of an original receipt which can then be used to purchase goods under your available credit.
2.    Subscribe to sms to your mobile phone for every transaction made. This allows you to keep track of your spending in real time.
3.    Have the credit card company provider verify when payment are requested over a reasonable limit, say $200. What this means is that the credit card company will call you before they will approve any transaction over the set limit, allowing you to catch potentially fraudulent activity.

Source:  Credit card fraud – Be Sharp About Your Security

With identity theft on the rise, a few agencies conducted inverted analysis that looked into the cost of identity theft. What does it cost to set up an identity theft company? The results were shocking to say the least – the cost comes to $30-$300. This is all it costs to set up a fake online store engineered to steal information about credit cards, passwords, and other such sensitive information.

The cost of identity theft ring start-ups is next to nothing when you consider that each individual victim might lose a minimum of $5,000, when they fall into such traps. Since the potential for profit far outweighs the initial cost it is no wonder that identity theft crime statistics show this type of crime is on a steady uphill climb.

The only way to ensure that you stay safe from this type of fraud is through education. Do not dismiss any news or education material on how to prevent identity theft. Given the cost of identity theft business set up, you will need to stay on the top of the latest news and technology developments to protect yourself from this crime. Identity theft criminals work tirelessly to find ways around security measures put into place by financial institutions and government agencies; you must work twice as hard to keep your financial information private and secure.

Source:   Cost of identity theft – A Thriving Business?

The identity theft business is a thriving business! There are millions of dollars mulched every year from mostly small and medium size businesses because these are the businesses that do not have adequate guarding systems put into place. The common mode of operation is simple. Send a virus-laden email to the account officials of the company, which when opened installs a specifically designed malicious software program. This program then collects the sensitive information as transmitted through the software program and begins initiating small wire transfers of $1,000 – $9,000 (less than $10,000 so the banks are not alerted) until discovered – which sometimes takes years.

Take steps to prevent business identity theft:

1.    Monitor your business credit account – This is an added expense that many businesses try to avoid, but is most necessary. A credit monitoring service can save you plenty of headache and thousands in dollars in the long run.

2.    Freeze your credit – All three major credit bureaus offer credit freezes in more than 37 states across the country. This is an excellent way to prevent anyone from obtaining credit in your name. However, be aware that freezing the ability to get credit from criminals also freezes your ability to get legitimate credit for yourself. Always be sure to know exactly what the terms of the credit freeze are and how to go about getting more credit for yourself in the future, which will entail lifting the credit freeze.

3.    Check continuously for mirror websites of your business – There are excellent software programs that will search the internet and identify mirror websites, pirated content and so on. This a great tool against business identity theft. Also, be very honest when and if you think there has been a breach by informing your customers as soon as possible so they may take proactive measures.

Source:   Business Identity Theft – 3 Steps To Prevent It

Did you know that there is insurance against identity theft? As millions of people are falling victim every year to this crime, new measures to protect consumers from such tragedy are emerging. It is now possible to get identity theft insurance. The provider of this type of insurance will reimburse victims up to $1,000,000 of their costs/ loss when identity theft occurs and you lose money because of the fraudulent activity.

There is more- this identity theft insurance provider/ company/ agency will also assist you to hire, pay and consult with experts required to deal with creditors to clear and restore your good name. Identity theft can be a heavy blow to your credit report and score if not handled well and expeditiously so the damage is contained at the lowest possible casualty levels.

Check with your insurance provider today and take out this type of insurance against identity theft. With hackers getting more and more ingenious at stealing sensitive information, it is very important that you have your security net in place. Such identity theft insurance is a must if you wish to be spared of the trouble and dangers of identity theft. Your credit identity is one of the most vital aspects of your life. Your finances and sensitive information should be cared for with the same tenacity that you care for your loved ones.

Source:   Insurance Identity Theft Can Protect You

There are about 9 million Americans who fall victim to credit theft every year; and the number is growing steadily. This type of theft is when your name and your social security number are used to avail loans, or when your credit card is used in an unauthorized manner.

This has become a “business” today since the technological advancement is making it easier everyday to use hacking systems and tap into people’s personal (financial) data. This is why it is very important that every person know what credit theft is and is able to set up measures that guard against such theft.

Most banks acknowledged this potential danger by issuing second and third tier passwords and PINs to prevent online credit theft. Ensure that you are aware of and subscribe to such measures to make your credit card use more secure.  At the same time, beware of keeping any sensitive information in your email inbox – since emails can be hacked quite easily in this technological age. This also applies to setting up passwords on the internet. Be careful when you create passwords. Passwords should not be easily figured out or you could be the next potential victim of credit theft. It is advised to NOT use birthdays, social security numbers, addresses or family names as passwords because someone with enough time and ingenuity can then breach your accounts with much more ease.

Source:  Credit Theft – What is this?