How Bankruptcy May Help You

In April of 2013, the Loss Mitigation Mediation program (also known as the LMM program) was launched in federal bankruptcy court in South Florida. This program allows homeowners who are struggling to modify their first mortgages on their homestead property to go to mediation with their lender under the protection of the bankruptcy court, in chapter 13 bankruptcy. The program has proved to be very promising as it was initiated by the trustee's office itself, and strongly supported by the local bankruptcy judges and attorneys.

The LMM program was modeled after the mediation program in the Orlando area, which has been very successful over the last 2 years, with an 80% success rate compared to a 4% success rate for mediations outside of bankruptcy. This is a huge difference, and we are excited about bringing this program into South Florida. For homeowners who have not been successful in achieving loan modifications in the past or on their own, this program may be a great next step. For more information, or to set up a free consultation, please contact our office.

Why Transparency is Key

When we speak to homeowners who have retained other law firms in the past, the number one complaint that we receive is that the client never received updates from their attorney; they were not kept in the loop regarding their case, and, overall, that they felt their attorney did not include them in the process. They feel that they did not receive the attention they deserved.

If you retain our law firm to represent you, you will be given a login and password to our client portal, on which you can see what is going on with your case. You can send us messages in real time 24 hours day/7 days a week, and always receive a response from one of our experienced RKE Team members within 24 hours. Our clients love the portal, as they have instant access to their attorneys and to their case.

Many of our clients work during the day, they need to be able to access their case when they get off from work, or even from their office. This way there are no questions; we always provide instant access. Clients can even upload documents to us through the portal, and this makes communication between our attorneys and our client so much easier. This way you'll always know what's going on, no surprises, and no secrets.

Who is RKE Law Group?

You may be asking what sets RKE Law Group apart from the rest of the law firms in South Florida? One of the first things we always share with people is that we are here for the average person looking for legal support.  We understand that when you are seeking legal support, you are not only experiencing stress but also confusion and are most likely trying to figure out what you should do next.

What most homeowners don't know is that the bank may initiate foreclosure proceedings against you, even if you are trying to work on a loan modification. What sets us apart from other companies is that, if you get served with a foreclosure lawsuit during the process, our attorneys will step in and aggressively defend the lawsuit, protecting your interests in the action, while continuing to work on settlement options with your lender, so that you are able to stay in your home.

What our clients like the best about our service is that they can log in to our client portal through our website and see what is going on with their case 24 hours a day/7 days a week.

Another bonus is that clients can also upload documents and ask questions through the portal, eliminating the need to having to set aside time to call. Our clients love the convenience that this portal allows!

We are owned operated by experienced attorneys licensed in the state of Florida, and we work for you. We are regulated by the Florida Bar, and adhere to a high level of ethics and customer service standards.

For more information, please contact our office.

Fast-Track Foreclosure Law

Fast-track foreclosure is now the LAW in Florida. What does this mean for you? This law essentially expedites the process the banks must follow in prosecuting foreclosure actions. It's a big change and it is important that you know the basics.

This law shifts the burden of proof to the homeowner by requiring that you file an answer to the lawsuit within a very short time period of 20-45 days.

If you fail to do this, the law allows the Court to enter a final judgment of foreclosure against you. What this law means for the homeowners of Florida, is that it's now more important than ever to seek the help of an experienced attorney to assert your legal rights.

If you want more information on the fast-track foreclosure law and how it may affect you, please contact our office.

Dealing with a Cease and Desist Order

One of the most common questions that we hear from homeowners who are behind on their mortgage payments is: "What can your firm do to help me put an end to these non-stop collection calls from the bank?"

Once we are retained, we immediately send a letter called a Cease & Desist. In this letter, we demand that the bank cease all direct communication with the homeowner, including harassing collection calls and all other collection calls; and we request that the lender direct all communication to our Firm.

It is possible that your lender may still continue to send you information about you loan as may be required by law. Simply keep these letters in a file in case we need to reference the dates of the letters. A best practice is to staple the envelope the letter came in to the letter so we have an accurate post mark if needed.

If the lender continues to call you on your personal cell or on you home phone after this letter is received, it is critical to keep track of the dates and times of these calls, as we may have an action against your lender for violation of federal law.

This means we may be able to file a lawsuit against your lender, and you may be able to win money back. Too many homeowners out there simply don't know what their rights are. We are here to help!

We encourage you to contact our office, and schedule a free consultation if you're interesting in learning more about this topic or with any concerns you may have regarding your loan modification, bankruptcy and other legal matters.

8 Step Checklist for Buying a Home

It does not matter if you are a first time home buyer or a home buyer making a home purchase after bankruptcy, these tips can help you be organized for a successful purchase.  If you are organized, you can not only find the home of your dreams but move into this purchase with confidence.

• Decide how much you can spend realistically. Take into consideration your income, expenses and possible future experiences. 

• Check your credit reports to find out where you stand.  Look for errors and correct them now so you are ready when you go to apply for a home loan. 
  

• Shop for a lender.  Look for the best rates and terms that will work for you.  Find out what closing costs may be involved with any lender (they can generally give you an estimate.)

• See if you can get pre-approved for a mortgage.  This will allow you to know what your budget is and what you can expect to pay as a down payment.

• Find a real estate agent that can help you to find a home that meets your needs. Find someone you feel confident in and can partner with you during this process.

• Make a list of features you would like in a home and research neighborhoods that you would like.  Think about crime rates, school and local services as much as you would when you are deciding if you wanted 3 bedrooms or 4 bedrooms. These things count.  This is where your family will live for a long time.

• Go house hunting and when you find one, make an offer that is contingent on the results of a full home inspection.

• If you are worried about any terms of your home purchase, consult a lawyer.  This way you can go confidently into your new home purchase!

Settlement Reached in Class Action Against Marshal Watson

Daily Business Review Settlement Reached in Class Action Against Marshall Watson - RKE Law Group.  

How to Prepare For Bankruptcy Filing-You Initial Meeting

Making a decision about whether you should file bankruptcy, and what type of bankruptcy is appropriate, can be hard for some.  Partnering with a great lawyer is key to getting the best support.

Here are some tips to get the most out of your meeting.

To get the most from your initial meeting you should bring:

• Information on income and assets (some will ask for your most recent banking statements too).
• A full month’s worth of pay stubs for you and your spouse.
• A copy of the deed to your home, showing exactly how you hold title.
• Information on the make, model, mileage on each vehicle you own.  If you have water crafts, the same for those too.  Don’t forget about RV’s too.
• A list of the stocks, deposit accounts, brokerage accounts and all other investment accounts you have.
• Information on your gross income for the past two calendar years.  
• A recent bill from each creditor or a list of creditors and the amount you owe to each one.
• Tax notices for each year for which you have unpaid taxes.  This include property taxes.
• Car loan information including the interest rate, payoff, or a copy of your car lease/loan.
• Balances on each loan secured by your home or other assets.
• Information regarding any lawsuits or judgments filed against you.
• If you operate a business, bring the business’s most recent tax return and the most recent income statements and information on lease agreements, debt and other documents.

You should also know the answers to the following questions.

• Have you co-signed loans?
• Do you have a lawsuit that hasn’t yet been filed or is pending?
• Do you appear on your parents’ or siblings property title?
• Have you put your property in trust?
• Are you entitled to an inheritance from someone who has recently died? Are you likely to inherit money in the next year?
• Are you getting a tax refund?

[First Person Story] Surviving Bankruptcy

This is a first person account of one families struggles with the decision to file for bankruptcy, and the emotions, fears and results that they experienced.  We know that when you are having money problems, you can feel alone and as if you are the only one this is happening too.  We hope this story gives you inspiration to know that ow will recover from your own financial struggles.

In 2007 we were blessed with the birth of our first child, a beautiful baby boy.  Shortly after his birth we realized that we were in for financial disaster.  At 13 weeks pregnant, I suffered major complications and almost lost out baby.  I was placed on bedrest, could not work and we had only one income which was being impacted by the fast that my husband need to be at home caring for me.

Our budget was tight but we were doing alright.  We were new home owners, had a new baby and felt like we would recover in no time.  Then our insurance started to deny claims that had been filed during my high risk pregnancy.  The medical bills started pouring in.  It was not on common to get bills every week.  We tried our best to work with creditors, create payment plans and make sure we connected with everyone so that we could managing an ever growing debit. 

Then the housing market crashed.  Our home’s value seemed to be cut in half over night.  Our neighborhood quickly changed from “happy family community” to foreclosed properties, an increase in crime occurrences and vandalism.

As we struggled, our lender refused to help us.  We were harassed by them, called names, threaten and belittled.  We knew we needed help but the idea of bankruptcy seemed wrong.  We felt like everything going on was our fault.

The decision to talk with a lawyer was not an easy one to make.  It was scary, overwhelming and just plain unimaginable at times.  Once the process got started however things quickly changed.  The lawyers gave us confidence.  They showed us that we were not totally at fault for the situation we were in.  

Having someone support you and help you refocus, get back on track and gain a healthy outlook for the future is one of the best things we did.  Instead of feeling as if we were failures, we learned how to make changes, how to make the right decisions when it came to whom we took loans from and who we trusted with our money.

We did loose our house, but thankfully we were able to move on.  Not only were we able to get credit rather quickly, we also were able to make smart choices to increase our credit scores and get focused on our future rather than a series of things we had been made to feel we could have fixed when really, we had no control over.

Partnering with a lawyer who knows what they are doing when it comes to bankruptcy, is the biggest step forward you can make.  Don’t be afraid to ask for help.  The problems that made you consider bankruptcy in the first place, can cloud your judgement and make you feel a lot less confident that you have to be.  Bankruptcy is not the end of the road.

*We have kept the writers identity confidential at their request.

Take Charge of Your Financial Life

For many, it is hard not to get addicted to the power of credit cards and over spending.  It often starts in college for many of us and we find ourselves graduating with an addiction to charging what we want. No one wants to get to the point of bankruptcy but it can happen faster than anyone imagines.

Once you have this habit, it will only grow with income increases. Quickly you can find yourself with a heap of credit debt that is growing every month.

It can take years to master your own money.  This is why you need to look at your finances like businesses do...be the CFO of your own life.

Here are 5 ways you can do the same:

Write things down so I could use the numbers to create a snapshot of my actual spending habits. 

Track expenses.  Write it all down and make sure everything gets written down.  From the pack of gum to the mortgage payment.  This way you can see what you spend and where you spend it.

Build a budget.

Create one for yourself.  This is critical to success.  You will begin to better understand your money when you do this.

Think 50 percent for needs, 20 percent for savings and 30 percent for wants.
How simple is that? This is the most effective way to manage your money.

Practice conscious spending.
Conscious spending means actively choosing where your money goes.  This is just what a business does. Spend extravagantly on the things you love, but cut costs like a master on the things that don't matter. Think...do I really need this or do I just want it?

Turn a profit.

Everyone knows that if a company spends more than it makes, it can't turn a profit and soon it will be out of business. Apply this to your own finances. Never spend more than you make.

You can still have a life if you are frugal, smart and organized in your money matters.  The first step is making an honest effort to manage your finances!

7 Steps to Better Credit

Deciding to declaring bankruptcy is a decision that affects not only your  personal finances but also your credit score. While your score may decrease after any financial hardship, there many practical and real life ways to improve your score, your personal financial plan and in general get back on a better financial path for yourself.

Of course, as anyone will tell you, before you start taking steps to fix your credit score, you need to understand what the score is and why it's so important to your financial future. 

Here is a brief explanation of how your credit works and the type of credit (credit cards, car loans, mortgage or rental agreements, student loans) the financial agency first looks at when evaluating your credit history.  This helps them to determine if it should lend to you. 

Many lenders use FICO scores as part of those decisions. If your FICO scores are in the mid-700s or above, that generally means you have good credit and it shouldn't be difficult for you to get approved.  Just know that every lender is different and you must also meet lender's other requirements.

How do I improve my credit score?

It is important that you understand what happens when you file a bankruptcy. It is best to ask your lawyer, tax preparer or even a financial advisor for specifics that might apply to your case. 

Know that a bankruptcy can remain on your credit report for up to 10 years, and there is a good chance your FICO score will be low until you have started rebuilding your credit. That's why you need to be smart with your second chance! You can take the following seven steps to start raising your scores and making good monkey choices

1. Review your credit report

The first step is knowing where you are starting from and where you need to go. You should  obtain a copy of your credit reports and make sure there are no errors or inconsistencies. It is common for debt to be miss categorized or not be completely cleared/marked as part of your bankruptcy.

You can try Credit.com's Free Credit Report Card for an overview of your credit standing and an explanation of how it's broken down, and you can request one free copy of your credit report per year from Equifax, Experian and TransUnion at AnnualCreditReport.c​om.

2. Pay bills on time

Your payment history makes up 35% of your credit score. One of the easiest ways to improve your score is to make sure you pay bills on time.

Tip: Set up reminders on your calendar to pay bills every month by the due date. Many banks and creditors offer services that allow you to set up your payments electronically so you don't forget. (Post continues below.)

3. Apply for credit . . . cautiously

If you didn't keep a major credit card account open during your bankruptcy, it's usually a  good idea to get one after your bankruptcy has been discharged. 

This is how you begin to rebuild your credit.  You might have to start with a secured card, which requires that you place a security deposit with the issuer. That's okay, the important thing to know is that it is a starting point for future recovery.

Once you get the card, it's perfectly fine to pay the bill off in full each month. You don't have to carry balances on your credit cards to build good credit.  You may also want to ask for a low limit so you can confidently know you can pay it off in full every single month.

4. Add a loan down the road

Once you have gone a year or two post-bankruptcy, consider getting a car loan or line of credit. This is your next step in showing you are making good money choices.

If it's a car loan, buy a vehicle that is affordable and that you can pay off successfully.  You do not want to go out an get the most expensive car on the lot.  Think like this:  Reasonable, Reliable and Realistic.  Those are the three R's you want when you get your vehicle.

You may receive a higher interest rate to start but that is okay.  Just shop around for the best rate, and keep in mind that once you have raised your credit scores, your next interest rate on a loan will likely be lower.  You can even contact your lender a year or so into your loan and ask for the rate to be lowered because you have successfully made 12 on time payments.

5. Beware of credit repair services

You may receive offers from credit repair services promising to help repair your credit. Not all of them are bad but you really need to make sure you investigate these services before you use them.

Their fees can be high and since you may already be in financial distress, you might want to look into taking control of this on your own. There are many ways you can rebuild your own financial future at no cost.

In this case, DIY is often best. You have control, you can learn and you can ask questions.

6. Know your limits

Again, once you begin re-establishing credit, it is crucial to know the limits on your credit cards and to keep your balances well below them. You may have a very low limit due to your credit history. That's OK. Use your cards sparingly and continue paying the bill on time.

7. Do not close accounts

You may think you're doing the right thing by closing lines of credit and swearing off all credit cards. That's not true.

This will do far more damage to your credit than you might think. Closing accounts reduces the amount of credit you have available to you. This leads to lower credit scores. It's best to keep the credit lines open and payment.  If you're tempted to spend, cut up the cards. 

The most important lesson to learn is to be patient. Getting to the point where bankruptcy occurred did not happen overnight. So don't expect that the road to improving your credit is going to do that.   Think smart, ask for advice from a professional and always think before you spend!

[Transcript] RKE Tip Tuesday: What to do when you get served with a Foreclosure Notice

As a foreclosure defense litigation attorney, I have helped hundreds of people in all stages of the foreclosure lawsuit. One of the most important stages, if not the most important, is the beginning.

This is a transcript from one of our awesome videos on YouTube.  We think the information is very valuable and we wanted to share it with those of you that maybe missed the YouTube video when it was first posted!  We know getting a foreclosure notice can be scary and we hope these tips will help.

A foreclosure action is initiated when a Plaintiff (usually the lender) files a Complaint for
Foreclosure against a Defendant, which in most cases is the home-owner. For the court to get jurisdiction over you and in order to bring you into the lawsuit, the Plaintiff must serve a Summons and Complaint upon you within 120 days of filing the Complaint. Service is typically completed by a process server, or a sheriff.

The process server generally delivers the Complaint package, along with the Summons, and they are signed and dated by both you and the process server. Once you are served, you have generally only 20 days from the date of service to file a response to the Complaint. 

What do you do next? Call an attorney. A good foreclosure defense attorney will be able to strategize and maneuver their way through the foreclosure action, while best preserving and protecting your interests at all times. 

If you can't afford an attorney or don't have time to hire one before the deadline, prepare your own response to the Complaint -- even a letter will be enough. Be sure to file it with the Court and to also send it to the Plaintiff's attorney -- just mailing it to your lender or contacting your lender is NOT enough. 

You cannot afford to NOT react. If you do not file an answer or response with the Court, you have created a huge obstacle for yourself to overcome as you risk being defaulted.

Also, if you are trying to work on a loan modification with your bank, don't be fooled into
thinking that your bank won't start a foreclosure lawsuit against you. Your bank can and will initiate a foreclosure lawsuit against you even if you're trying to work on a modification.

The most important "Take-Away" from you from this is that you absolutely must respond to a foreclosure complaint after you are served. No answering will put you on a fast-track to losing your home. 

As foreclosure litigation is a lot of work and requires in depth legal knowledge, your interests would be best protected by hiring an experience attorney to be on your side. However, if not able to hire an attorney right now, if you are able to answer the complaint, it will make it a lot easier for the attorney that you are looking to hire.

RKE Law Group Successfull Agreement

We often get asked about our success with getting loan modifications for our clients.  Although every client has a different outcome for a variety of factors, we can say that many find that with our assistance, they are able to get a loan modification that meets or exceeds their needs.  

You can never go wrong when you get the right support for a loan modification.  It can be a scary when you are underwater on your mortgage and can’t afford to make your monthly payments!  

Check out a recent loan modification agreement RKE Law was able to achieve for an amazing client.  

RKE Law Group Successful Agreement

Client since: August 2012 came to us after a foreclosure lawsuit had been initiated

Principal Reduction: $131,036.92******

New Principal and Interest Payment $158.32

Escrow Payment $266.45

Total Monthly Payment: $424.77

New Interest Rate: 2.00% (until 8/01/18)

Adjust to: 3.98% (fixed for the life of the loan)

New Principal Balance: $35,500.00

Old Principal Balance: $166,536.92

Principal Reduction of: $131,036.92******

This was a HUGE achievement for the client.  The amount of the principle reduction is amazing and their monthly payment is much more reasonable for their budget.  

No one needs to suffer through the stress of loan modification and feel alone during the process.  

Although you don’t have to retain a lawyer when requesting a loan modification we can say that According to a 2010 study by the Urban Institute, clients with a representative lowered their monthly payments by an average of $267 more than those without legal counsel.

We are here to help you!  Contact us today so we can help you get on the road to success!

Tips for Buying a House After Bankruptcy

Recovery after bankruptcy can be hard.  You may want to own a home again but honestly don't know where to start.  It is common to have some fears when taking the next step and becoming a homeowner for a second time around.  Here are some tips to help you make the right choices and be successful.

Know where you want to live, for a long time

When you buy a home, you should know where you want to live and be winning to stay put.  If you can’t commit to one home for a long time, then consider renting until you can.  You don’t want to get into a situation where you buy a home, then a year later decide you want to move.  You may end up losing money even if prices from home are on the rise.

Start working on your credit now

Since you will need to have a mortgage to buy a house, you need to make sure that you check your credit reports, fix errors, and see where you need to make improvements to boost your score.

Buy a Home you can really afford

Don’t over buy on a home.  We all want a dream home but what is more important is that you buy a home you can actually afford.  Use an online calculator and take into consider things like the cost to heat or cool your home, how many repairs need to be done and if the home is the one you can stay in for a while.  Know your budget and stick too it.

Find the right lender

If you can’t put down the full 20% on your home, then find a lender that can work with you on a lower down payment.

Think about the area around you before you buy

Are the schools good?  Kids grow up and you will need to have elementary, middle and high school around you for the kids to attend.  Pick and area with the best schools that you can find.  You also will want to see if the home is close to work so that you can cut back on commuting costs.  Sometimes you can find the right house, in the wrong area.  Make sure you weigh all the aspects before you buy.

Ask for help

Find someone you can partner with for help.  You can talk with a financial planner, money adviser or money coach to help you make the right choice.  If you feel like you are not sure, you can always take the information on your homes to a professional, tell them what your budget is and ask them how to make it work for you.

[Video] See What Our Clients Have to Say

Check out this great testimonial from one of our clients!  We truly value each and every client and are here to support your through all your legal needs

[Video] RKE Law Groups Tips for Bankruptcy

At RKELawGroup.com - we're more than just law, we're about community! 

If you have a question regarding bankruptcy please contact us to schedule and appointment.  We are here to work with you to insure that you are taken care of.

Florida's Governor Signs Foreclosure Bill

This past week Florida’s governor signed a much debated foreclosure bill.  This bill now is enacting a series of provisions aimed at speeding up the default process in the state.  This is a huge change and the bill is getting a lot of attention.

New requirements, both legal and procedural, for attorneys working within the foreclosure space note House Bill 87. Critics refer to it as the 'rocket docket' legislation, because it is designed to quicken the foreclosure review system previously in place. However, with any new legislation there are many procedural caveats that could make that comparison less appropriate. Here are just two of the sections of the bill:

• The office of Florida attorney Daniel Consuegra even published an alert for attorneys advising them that HB 87 reduces the statute of limitations for filing a deficiency action to only one year from the sale or date of the acceptance of a deed-in-lieu.
• That section of the bill takes effect July 1.
  
  

"As a result you will need to act quickly and secure your deficiency judgment," Consuegra said.

Furthermore, according to Daniel Consuegra, attorneys says the bill:

• requires additional items to be presented with the foreclosure complaint specifically a certification of possession of the original note, or a lost note affidavit filed concurrently with the complaint.

To meet the demands of the new bill, it is clear that some forms used in the process are likely to require modification, and it could take time to adopt them or modify them. Since HB 87 also changes state law to so now any named party can move for "an order to show cause", not just a plaintiff, there are other changes that lawyers much recognize.  According to Consuegra, "This presents some interesting challenges and opportunities that should be prepared for."

Consuegra also stated that "Further, the changes in the law provide an avenue for plaintiff's, for property other than owner occupied, to request the court to enter an order to show cause why an order to make payments or order to vacate the premises should not be entered. This could be an effective tool in dealing with litigious owners who are renting the properties."

The HB 87 bill also establishes adequate protection for lost notes and is designed to prevent what Consuegra calls  "collateral attacks on foreclosure judgments by borrowers who were served in the action when the property has been acquired for value by a third party and all time periods to appeal have expired."

It is clear this new bill is going to take not only some adjustment, but some time to settle before the real effects can clearly be evaluated by both homeowners, attorneys and lawmakers.

Credit Reports Will Now Better Reflect Discharged Debt

In the past, if you filed for personal bankruptcy protection, your credit report is supposed to be updated to reflect that you no longer have to pay those bills and that the debts have been discharged as part of the bankruptcy.  However this has not always been the case for some people.

The truth is the three big credit reporting bureaus have not always been very good about doing that for those who have filed for bankruptcy in the past. Over last few years however, they have become much better, says John Ulzheimer, president of consumer education at SmartCredit.com.  This is a good thing for those managing life after bankruptcy!

The reason for this change says Ulzheimer, is a settlement agreement the bureaus reached to as part of a class-action lawsuit in which he was an expert witness on behalf of plaintiffs in the suit.

The class-action case, which initially started as multiple suits in both 2005 and 2006, stated that the major credit bureaus (Experian, Equifax and TransUnion) issued credit reports saying that consumers were delinquent in making payments on debts that had been should have been eliminated in bankruptcy. This caused confusion and countless headaches for those that had filed.  Some plaintiffs also said that the credit bureaus did not even try investigate the errors, even after they made the bureaus aware of a problem.  This only caused further frustrations for consumers.

A financial settlement of $45 has been approved by the trial court for the suit but was thrown out in April by the United States Court of Appeals for the Ninth Circuit. The appeals court discovered that in some of the cases that were part of the lawsuits, various plaintiffs in the case stood to benefit more than others, creating an improper conflict which was not fair on a whole.

Recent improvements in the bureaus' bankruptcy reporting procedures had already gone into effect as part of an earlier agreement reached for one part of the suit in 2008 stated Mr. Ulzheimer.

As part of that settlement, the credit bureaus also agreed to put in place systems to ensure all debts that accrued before bankruptcy were accurately reported and recorded as being included in a bankruptcy filing. This was if the debts from the filing party are eligible, of course. Anyone who has ever looked into to filing for bankruptcy knows that some debts, such as student loans, cannot be discharged in a bankruptcy.

Bankruptcy and its negative effect can remain on your credit report for years, 10 years with Chapter 7 filing. So you can imagine what a huge deal is if your report incorrectly shows that you still owe some debts it is like the bankruptcy did little to help you out of your second chance at rebuilding your credit and improving your credit score.

Now it is true that in the year to two years after you immediately file bankruptcy,  your credit rating will suffer greatly. This is supposed to be the time when you work on getting back on track and gaining financial health.  If you stay on top of new debts, most people should gradually begin to improve and within three years, see an improvement in their credit scores. However if  an old debt or multiple old debts are still incorrectly shown as due and payable, your credit score would be worse than it should be and you may feel like you filed for nothing.

Ulzheimer agreed that accurately reflecting the status of your debts “makes the best out of a bad situation.”

Although you should not expect all traces of prior delinquency to disappear overnight. If you look at  Experian’s Web site they note that “after a debt is discharged in a bankruptcy, the associated account is not immediately deleted from your credit history”. What this means according to the site,  the accounts are “updated” so show they are included in the bankruptcy, so there is no balance due.  This is why it is important to run your credit reports regularly after Chapter 7.

If you filed bankruptcy did you check your credit report after filing? Did the report accurately reflect your debts? What did you do if you found debts still there?

[VIDEO] RKE Law Group partners with The Motivational Edge and Sends A Student to Summer Camp

At RKELawGroup.com - we're more than just law, we're about community! 

http://RKELawGroup.com has partnered with http://themotivationaledge.org/, a local Miami non-profit that provides musical arts to underprivileged kids. RKE Law Group has agreed to sponsor a student for The Motivational Edge's Summer Camp!

Principal Forgiveness Could Reduce Tax Liability for Homeowners

If Fannie Mae and Freddie Mac can reduce loan balances for borrowers that owe more money than their homes are worth, it would in turn reduce mortgage defaults and save the government a significant amount of money...


Read the entire article here on the Wall Street Journal Blog: 

http://blogs.wsj.com/developments/2013/05/06/report-principal-forgiveness-could-reduce-costs-for-taxpayers/