BANKRUPTCY HELPS STOP WAGE GARNISHMENTS!

If you are thinking of filing bankruptcy due to a Wage Garnishment Order, In most cases filing bankruptcy will stop your future wages from being garnished and in fact it might be possible to get some of your garnished wages back!

But, the surroundings circumstances must be in your favor in order to get you wages back; specifically,

1.    The wages garnished must have been $600.00 or more within the 90 days prior to filing bankruptcy as you can only recover garnished wages from the 90 days preceding filing bankruptcy; and

2.    You can exempt the wages once they are returned to you.

Garnished wages needs to be listed on your schedules and then elected to be exempted. It is also very important to note that the garnished wages will not be returned right away. It will most likely take several months for you to receive your wages.

If the garnished wages have simply only been taken out of your paycheck and never sent to your creditor, then they should still be being held by your employer. If that is the case, then your employer should simply return the funds to you once they receive notice that you have filed bankruptcy. However, you will only be able to keep the funds if you are able to exempt them.

If your wages are currently being garnished and you are thinking of filing bankruptcy in order to stop the wage garnishment, contact the best Bankruptcy Attorney in Guam, today at the Law Office of Mark Williams by calling (671) 637-9620/1. Not only will Attorney Mark Williams help you file bankruptcy, he can also help you determine whether bankruptcy is right for you, and show you how he can help stop your wage garnishments.

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.

Myths of Bankruptcy

One of the most typical myth is that your credit rating will be so damaged that you will never secure a loan, or my name is damaged; this simply isn't true. 

Most people already have repayment problems, late payments, high balances, collection accounts and/or charge off accounts; this is what damages your credit rating. 

In most instances bankruptcy actually improves your credit score because these patterns of borrowing have been resolved.

You may not be able to bring your score up to the perfect 850 as long as your bankruptcy stays in your report, but with good credit management after filing, a score in the 700s is possible.

Bankruptcy can you give you a fresh start and with a few clever credit repair strategies, your score could be back in the 700s within two or three years after filing.

Here's some tips in how to raise your credit score after bankruptcy:

1. Damage Control

Make sure all the accounts you included in your bankruptcy are listed as such, and show $0 balances if you filed Chapter 7

2. Get New Credit Cards

After bankruptcy, if you can't get approved for an unsecured credit card, start out with a secured card. With a secured card, you will make a deposit with the credit-card issuer, which will in essence be your credit limit. Typically, after a year to 18 months of on-time payments, you could "graduate" to a regular, unsecured credit card.

3. Piggyback

If you have a trusted friend or relative, ask them to make you an authorized user on one of their credit cards. Your bankruptcy won't affect your friend's credit, but you'll automatically get the account history for that card in your report.

4. Bigger Loans

What about auto loans and mortgages? You can start shopping for auto loans as soon as a few months out of bankruptcy,

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.

Driver's License Suspension or Loss and Bankruptcy

A common question that arises from clients is whether they can get their driver’s license back if it has been revoked after a car accident.  Normally you can discharge debts arising from a car accident.  Some common reasons a driver may lose their driver’s license after a car accident would be because they did not have insurance and/or were unable to pay to repair the other person’s car.  Also, many times those involved have been hurt in the accident and there are medical bills and personal injury claims.

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.

Do not pay zombie debts! - Bankruptcy- Guam

Do not pay zombie debts!

Many people believe that they should not delay when it comes to paying off their debts and getting back on the road to being in a good financial position. However, you could be in for a big – and not so nice – surprise if you send a check to a debt collector seeking payment on an old debt.

Of course, your debts can accumulate over time, particularly as the interest on the unpaid principal balance mounts, and leave you in a very difficult spot. Even if you can only make a small dent in your overall debt balance, you may think, every little bit helps. Other times some debtors get so frustrated by the debt collectors’ tactics that they actually end up encouraging the borderline-illegal behavior by giving in to the demands and paying off the debts.

But the truth is that paying off old debts could actually hurt you when planning for bankruptcy.  This is because recent payments to creditors which are going to be subject to discharge can be considered an unlawful preference in favor of such creditors over other creditors not being paid. 

Consult with your professional bankruptcy attorney before paying debts if you are considering bankruptcy!

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.

Timing in Bankruptcy Cases

Timing in Bankruptcy Cases

As in lots of things, timing is everything.  Timing is important in music, comedy, athletics, you name it.
Timing can be very important in a bankruptcy case, too.  There can be multiple reasons for filing bankruptcy sooner as opposed to later.  There can be good reasons for delaying a bankruptcy, too.  The main point of this article is that, whether you file bankruptcy now or later, it does not hurt to talk to an experienced bankruptcy attorney sooner to find out if there are any timing issues in your situation.

Should I file now?

Apart from the typical reasons of urgency—house is being foreclosed next week; car is about to get repossessed, there are other timing issues that can be very important.  Some examples include the following:

Court Proceedings

In most cases, if a creditor initiates court action, the result is a court judgement, and your wages can be garnished.  If your wages are garnished, it may make it harder for you to get your money together to file for bankruptcy protection.  If you know a lawsuit is coming, filing sooner rather than later may be the optimum thing to do.
Another factor about court judgements is that once a judgement is entered, it is a lien on your property and can result in the loss or foreclosure sale of that property, including your home.  It is important to understand that such judgement liens can also be avoided in bankruptcy under certain circumstances, but this is dependent upon many factors.  Filing a bankruptcy case sooner as opposed to later in such cases may make sense because you may be able to avoid the judgement lien in its entirety.

Recent Judgements or Garnishments 

Another timing factor for filing sooner as opposed to later may involve whether a creditor obtains more money than the creditor would be entitled to in a in a bankruptcy case.  If a creditor gets a judgement against you and you time a bankruptcy case correctly, you may be able to recover such garnishments, and even have the judgement avoided.  This may be advantageous for you.

Should I wait to file bankruptcy?

Just as there are good reasons for filing bankruptcy sooner, there can be very good reasons for waiting to file bankruptcy.

Potential lowering of payments on on a vehicle

If you have a car that you bought on which you are making payments but have not quite had it for 2 1/2 years, it may make sense to wait until after the 2 1/2 year mark so that you can lower your car payment, and pay significantly less for the car through a chapter 13 case than if you do not.  Consult with your bankruptcy lawyer for further instructions about this.

Preferences

Just as an unsecured creditor is not allowed to garnish wages or collect payments on the eve of bankruptcy, voluntary payments you have made to such creditors can just as easily justify delaying a filing so that such payments do not have to be repaid to the Trustee.  Or, if you have made a transfer of property to someone, it may make sense to wait a while so that the applicable time period expires.

Taxes

If you have filed all your tax returns, some taxes can be discharged if they are of a certain age.  The requirements for determining the dischargeability of taxes can be daunting but it can be accomplished.  If you owe state or federal taxes, it may be to your benefit to delay a bankruptcy filing so that the necessary time period passes.  This can mean the difference in discharging potentially thousands of dollars in taxes or getting stuck with continuing to pay these claims.

Need to obtain money for bankruptcy fees

Bankruptcy is a complicated legal proceeding and it takes money to file bankruptcy.  It takes money to pay for a quality bankruptcy lawyer, too.  It is not proper for a bankruptcy lawyer (or any unsecured creditor) to collect fees from you after a case is filed with few exceptions in Chapter 13 cases, for example.

As stated above, timing can be very important.  This is not an exclusive list of timing issues but are only examples.  If you feel the financial ropes tightening, it can be critical to an experienced bankruptcy attorney now to find out if you may have timing issues with your case which could be important.  Your financial future could depend on it.

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.

What is a Medical Bankruptcy?

Financial stress caused by the costs of medical care for an individual or family member is often a contributing cause for a bankruptcy filing.

Medical service providers are aggressive about collection their debts and will take credit card payments, or create the need for loans and borrowing beyond your means, or the use of specialized lenders often working in partnership with hospitals and other health care providers to offer “convenient health care financing”. 

When expensive medical treatments are involved, and insurance coverage is absent or inadequate, financial counselors at hospitals and other medical services providers will suggest a home equity line of credit or other ways to borrow money in order to prepare for payment of the anticipated medical bill.  When the services have already been provided and payment is not forthcoming, most medical service providers are aggressive about pursuing legal avenues of collection.

Because many expensive procedures are prepaid, or when they are not prepaid they are quickly collected by the service providers, medical bills often do not show up in the list of creditors filed with bankruptcy schedules when the debtor ultimately resorts to Bankruptcy Court relief.

Most people work hard to pay their bills.  Bankruptcy is not the first option for most debtors, it is often the last resort when all other options have failed.  Consumers will advance on their credit cards, borrow against their homes, borrow money from friends and family, and sell personal possessions before they resort to bankruptcy in order to settle their debts.

As a bankruptcy lawyer, I meet directly with clients and collect the information necessary to file their bankruptcy case.  My clients are often ashamed that they have been forced to resort to bankruptcy but often have no other option.  They are quick to tell me about the economic forces that compel them into this action.  In a large number of cases, it was an accident or illness, and the subsequent medical bills that caused the breakdown of family financial affairs.

For financial circumstances that are beyond your control and beyond your ability to pay, don't forget that the services of Dededo Law Office are available and ready to save you, your family with your home, your income and your property from financial disaster.  Ask me how!

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.

 

BANKRUPTCY IS TAKING BACK YOUR POWER!

What bankruptcy will do is give you back up when you want to say NO to any family members or friends who continue to ask for money.

You know what I am talking about.  Your kids or adult children, parents, or friends who continue to hound you about money, and you just can’t say no to them. You try to say no, you know you should say no, but you just can’t bring yourself to say the word, no.  Why is that?  My clients feel incredibly guilty when saying no to just about anyone.

Guilt is a fascinating emotion that if allowed to exist unchecked, will lead to spending patterns that may lead to a bankruptcy filing.  Think about those people in your life who are stingy with their time or money; they have no trouble saying the word no even before you have finished the question.

People who say no value their time and resources and will choose very wisely on when, where and how they will spend these assets.  You too need to take a moment and learn the power of saying, NO.

It will not be easy as every action will have an equal and opposite reaction.  Meaning, as you become more comfortable with saying no to requests the more people will ask what is wrong with you or why are you mad at them. You are not being selfish for taking this stand but rather you are placing value on your time and financial resources.

How hard did YOU work to obtain your money?  Did you work 1-2 jobs?  Did you work overtime? Did you work holidays and weekends? Did you do without something you wanted or needed simply because you gave your money to someone who asked for “a loan”?  A loan that you have not seen the repayment even though it has been months or years since you initially gave them your money.  Now ask yourself, what is the person who is asking for money willing to do?

Have they tried to get a job? Any job?  If they have a job, are they trying to pick up extra hours?  Have they tried to sell something to make ends meet?  Have they offered to do a job for you as an effort to help out if you give them a loan?  We could go on and on, but more often than not, the answer is still going to be no.  Why?  Because they know you will feel guilty and eventually give them the money they requested.

Break this pattern of financial insanity and use your power of saying NO!  How does bankruptcy help you with this?  You tell whoever is asking for money:  No, I may not give you any money because my attorney and I have worked out a budget.  In this budget, there is absolutely no room for me to give you any money at this time.  You can even say you have signed the bankruptcy schedules under penalty of perjury of law, therefore, by giving them money you place yourself at risk for breaking federal law.  Finishing by informing them you rather not spend five years in jail for lying to the court.

Learning to say no is truly a power that will provide you with a lot of strength.  It won’t be easy at first but then learning to walk for the first time wasn’t easy either but today you can do it without thinking.

Analyze each request as to whether you can afford your time or finances.  Make a pro and con checklist to see if the pros outweigh the cons.  You will make two columns.  In the pro column, you will list all the reasons why the request is a good one and you might say yes.  In the con column you will list all the reasons the request is not a good one and therefore, the answer should be no.  In the analysis ask the question, what is this person willing to do to assist with the request? If the answer is nothing, your answer should immediately be no.  Otherwise, review the final work product and see which column has more answers that will be the way you should consider the request.

The practice of listing out the pros and cons will assist you in making an educated decision about answering any request.  The more you practice this technique the easier it will become.  Soon you will catch yourself running a pro and con list in your head as to whether or not the request is even worth considering.

Remember, knowledge is power.  The more knowledge you have about valuing your time, money and resources, the greater chance you will have to use your power of saying, NO!

 

Check out more valuable information about Guam's Laws and working with Mark Williams, Guam's Best Lawyer, on Dededo Law Office's website, www.GuamLegal.com.