New Payment Options

Now accepting credit cards on non-bankruptcy matters. email me at debtfreedetroit@gmail.com

Monday, May 16, 2022

LIFE AFTER BANKRUPTCY

So you've finally been discharged from your bankruptcy, and now you are free to do whatever you want again. The world is your oyster!

But before you grab a bucket and head for the beach, there are a few things you need to know. First of all, a bankruptcy discharge is not a license to shop. That itch to celebrate your newfound freedom might almost impossible to ignore, but if you want to stay debt-free, you are going to have to lay low for awhile, especially in the three months after your discharge.

Here's why: you probably feel like you've been in debt forever, but you're not the only one who knows it. Credit card companies have caught the scent too, and chances are you're getting applications left, right and center these days. Talk about tempting! The best thing you can do is to throw those applications right into the recycle bin, regardless of how much this or that company says they want to help you rebuild your credit. The truth is they don't want to help you rebuild; they want to help you get back in the position that caused you to go bankrupt in the first place.

Those 'high-risk' cards come with a lot of caveats - the fee you pay to get the card, for instance. Some cards will actually charge you for the card by placing it on your card. So if your card has a $100 limit and it cost you $75 to get, guess what? You only have $75 in credit. Go over that, and get ready for some nasty fees.

So how can you get your life back to normal? Before you do anything else, you have to change your spending habits. Really think about the cost and quality of things and put yourself in control. For example, is it really worth it to buy that brand-name bread when the store brand is just as good and costs a dollar less? It's a small-scale example, but if you can apply that kind of thinking in baby steps, pretty soon you'll be able to apply it to everything you buy, no matter how large. So clip coupons, try to buy when things are on sale, and don't go hog wild when you do buy.

Second, prioritize your bills. Your most important, must-pay-on-time bill every month should be your rent or mortgage. It's your shelter, and without it, handling anything else that comes your way becomes a lot more difficult. Your utilities are next, because you have to be able to cook and store your food. Your third most important bill might be the telephone, the fourth your cable TV or satellite, and so on. Take an average of how much of your pay check goes for rent/mortgage and bills. Then, set aside a little bit of each check to put toward each bill. It might be tedious, but trust me; it will be worth it once you get into the flow.

The third thing you have to do is save up $500, doing the same as you've done for your bills - take a bit out of each pay check. Only this time, open a new account. Once you've saved $500, run to your nearest bank and request a secured bank loan for that amount. The bank should have no problem granting your request, as the money's already there. For the next 90 days, make your payments on time, every time. You will be amazed at how much faster this will build your credit than those high-risk cards!

If you have to use credit, why not do so to your advantage? Here's how: purchase an item that's on sale with your credit card. Then, when your credit card bill arrives, pay the item off in full. That's it! You get to enjoy your new item for a month before you have to pay for it. If you can stick to this, your credit will have nowhere to go but up.

By applying the above tips, your credit will be given a boost at a time when you need it the most - in the first 3 or 4 months after a bankruptcy discharge. You've been given a second chance. Don't give up - you can do it!


CALL 313-343-9930 today! or debtfreedetroit@gmail.com


Monday, March 14, 2022

Bankruptcy Tips - Some Rebounding Tips After Bankruptcy - Part #1

 

So you have filed for bankruptcy. What’s the next step? At first blush, you are full of ideas on how you are getting a fresh start. You have freed yourself from almost all of your debts and you are, for all intents and purposes (financially, at least), a new person. But note that by filing for bankruptcy, you had to pay a dear price. In exchange for a discharge of your debts and stopping your creditors from pursuing any collection actions against you, your credit rating took the brunt of the blow. Considering how your credit rating was probably not all that great to begin with, this recent hit is going to be an easy one to recover from.


Let’s start with the bad news:


• The bankruptcy will stay on your credit report for up to 10 years.


• To lenders, you would seem a bad risk because you have legally written off at least some of your past debts.


• As a consequence, you may not be able to get a loan or a credit card for some time after the bankruptcy.


• And if you do get lucky and get approved for credit, the interest rates and fees attached will be rather punishing.


The silver lining? Think positive. It is good that you are restricted from getting new credit. Credits were what you got bankrupt in the first place. They will have no difficulty getting you in that place...again. Now, for the rebounding tips to help you climb back up from the pits of bankruptcy:


Lead a Frugal Lifestyle: Common sense dictates that you lead a simpler lifestyle properly slimmed-down, no frills attached. In other words, be frugal. If you filed under Chapter 13, it means that you have signed up for a repayment plan to pay off some of your debts. The purpose of Chapter 13 is to allow debt reorganization so that you can continue holding on to your properties and other assets in exchange for obliging yourself to pay your debts for a certain number of years. The bottom line, therefore, is that you are still in debt, albeit, you may only pay a portion of the total debt to your creditors.


The usual period given by bankruptcy courts with which you can pay off your debts is within three to five years. During this time, the court allows you only a set amount to live on while the court-appointed trustee divides the rest among your creditors each month. What does this mean to you?


As we earlier said, it means a no-frills lifestyle. No luxuries whatsoever, except those exempted under the law. And sometimes, just sometimes, it may also mean changing your basic expenses, such as how much you pay for shelter and groceries every month. You may even have to move to a cheaper apartment or a more low-end neighborhood just so you can get by with the amount the court allows you. Suffice to say that getting new credit will be a difficult feat, if not downright impossible. So you can forget about getting a new credit card or a car loan. Or at least, getting it the easy way. Besides, you can’t take on a new debt without the court’s permission anyway, and getting that means adding an awful lot of complexity in your life.


So how do you go about with barely anything to tide you over through the hard times ahead? It’s simple really – make a budget. Better yet, keep a close watch on your expenses for three months and make a budget based on any observations you have made on your spending habits.


Track your expenses for three months to get an idea of how much you’re spending and where that money is going. Then create a realistic budget that fits within your monthly income, he says. 'The first step to saving is to set boundaries on your spending. And after making a budget, stick to it. That’s the most important part.


You can do it, and I am always here to help. debtfreedetroit@gmail.com or 313-343-9930

Tuesday, July 6, 2021

Steps to Eliminate Debt

  Have you ever asked yourself - "How can I pay this debt down?!" Where do you start, it can be overwhelming and hard. But armed with these easy steps, you can pay your debt down and eliminate it.

First, you have to know the basics, how much money you have coming in, and  how much going out! Or, in other words, a budget. 

Second, change what you spend on. Most spending his habit spending, and those can add up. If you like coffee, avoid the high end coffee shops, and brew at home. If you eat out a lot at lunch during work, pack your lunch. It takes three weeks to effectively change a habit, you can do it, and save money.

Third, lock up those cards! Put them away, take them out of your wallet. This will take away your ability to use them on a whim. 

Lastly, pay off your debt as quick as possible. A lot of advice out there says pay off the highest balances first, then move down. But that can be more counter productive, pay the lower ones first, and they will come off your "plate" quicker, and you will get gratification from seeing them lower ones go to zero, and eventually falling off the credit report. You will still pay on the larger ones, but you can eliminate the smaller ones quicker and get the euphoric feeling of accomplishment.

In sum, you can pay off you debt, it can be done, you just need some basic steps and habit changes and you can get there. 

If all else fails, don't count out bankruptcy, it is a quick and legal way to do so, and will not hurt you as bad as you think. As always, contact me for a free, no obligation analysis. At 313-343-9930 or debtfreedetroit@gmail.com


Monday, November 9, 2020

A Look At Personal Bankruptcy & What To Expect

 

One of the most difficult decisions that you can face is whether or not to file for bankruptcy. For individuals, there are two types of personal bankruptcy - Chapter 7 and Chapter 13. Designed to give the filer a fresh start in life by wiping out certain debts, a Chapter 7 bankruptcy will rid the filer of credit card and other unsecured debt. A chapter 13 bankruptcy, on the other hand, is a court-approved payment plan in which the filer is required to repay a predetermined percentage of their debt. The determination of which chapter to file will be based on the filer’s disposable income, if any, after paying their necessary monthly bills.

When many people file for bankruptcy, their first thoughts are of their assets and whether or not they may lose their home. In a Chapter 13 repayment plan, the majority of filers are allowed to keep their property in exchange for repaying a portion of their debts. A Chapter 7, however, is designed to be a liquidation process that often results in the sale of non-exempt property. Which property is non-exempt in a bankruptcy proceeding? Each state has it’s own laws pertaining to the amount of property that an individual or married couple can keep without having to worry about it being liquidated.

The official bankruptcy process begins upon filing a petition with the local bankruptcy court. This can either be done without an attorney, also known as pro se, or with the help of an attorney. For most, hiring an attorney is the best way to make sure that every form is completed accurately and in order to make sure their assets are protected as much as possible. Upon the filing of a bankruptcy petition, the court will assign a trustee to the case and will set a date for a Meeting of the Creditors. Although creditors of the filer are invited to attend, they are not required to do so. The filer, however, is required to attend and will be questioned by the trustee, under oath, while having the meeting recorded. This meeting is typically the only appearance required of the filer unless special circumstances are present.

Following the Meeting of the Creditors, often referred to as the 341 meeting, the creditors will have 30 days to object to the filers property exemptions and another 30 days to object to the discharge if the filing is a Chapter 7 bankruptcy. In a Chapter 13 proceeding, creditors may object to the payment plan but the discharge will not be granted until the payment plan is complete. A Chapter 13 bankruptcy can last for up to 5 years before the payments are completed and a discharge is issued. Following the discharge, the bankruptcy case will be closed and the process will be complete.


Call today 1-313-343-9930  or email at debtfreedetroit@gmail.com

Friday, March 27, 2020

Chapter 7 and 13

If you are still considering, or more to the point, NEEDING to file either chapter 7 or chapter 13 bankruptcy, you can still do so.

As of now, ALL aspects of filing can be done remotely via email, fax, and telephone.

Our Courts and Trustees have all switched to hearings via telephone conference with no person to person interaction. So all the protections are still there for those who may still be facing garnishments, foreclosures, repossessions and other issues.

In addition to bankruptcy, my office has been handling remotely for over 5 years now, wills, powers of attorney, and medical directives. You always could get these services remotely with my office, and now is no exception.

There is never a good time to put off estate planning, and I am here to help in this crazy time.

Call, 313-343-9930 or email at debtfreedetroit@gmail.com

Stay Safe
Charles L. Basch II