January 17 is Martin Luther King Day, but unlike many, I won’t be “off” from work. I’ll be presenting at and attending the ABI’s Northeast Consumer Winter Conference at Suffolk University Law School in Boston. I can understand how it might seem disrespectful to be attending a conference on a day when we should be celebrating the life of a civil rights leader. But it is also, I think, particularly fitting. Let me explain…
Posts Tagged ‘Credit and Debt’
Hope is a 4-Letter Word
Sunday, October 3rd, 2010
Many have read media reports that decry HAMP (the Obama Administration’s purported “response” to the foreclosure crisis) and proclaim it is as lipstick on a pig. After two years have watching clients struggle in this program and few coming up with anything meaningful, I want to go on record as saying this:
HAMP is not only lipstick on a pig, but it’s continued existence only puts more light on the political impotence and the bankruptcy of leadership on both Beacon Hill and Capital Hill.
Yet Another Reason to Avoid the Rip-Off of Debt Settlement
Thursday, August 19th, 2010
I was recently retained by a client who – like many people struggling nowadays – tried to tackle their mounting financial problems by going to a debt settlement company. I’ve said it once, and I’ll say it again: debt settlement companies are a rip-off. The proof is in how empty my client’s wallet is now, and where my client is now.
Debt: The Prices You Pay
Wednesday, August 4th, 2010
Some espouse the belief that if you’re up to your eyeballs in debt, it’s better to eat beans and rice for weeks, months and years until the debt is paid. I won’t mention names. This isn’t about them. While it’s pretty indefensible to live a lifestyle you cannot afford at the expense of creditors, it’s even worse to lead a lifestyle that can be downright counterproductive and harmful when you’re trying to pay your creditors. There’s being “super frugal” and then there is being “stupid frugal.” So today, I want to cover a few things I’ve noticed people doing while they are trying to pay down their debt. I sharing my observations, but I think it’s good if you consider it food for thought.
Credit Fueled Drunken Debauchery
Sunday, June 6th, 2010
Come on, you had to know I was going to write about this: Her no longer royal highness Sarah Ferguson is blaming booze (and her debt) for her lapse in judgment in seeking money in exchange for access to her ex-husband, Prince Andrew. I’m still not entirely clear what “access” really meant… that alone could be another blog, on another website.
Oddly, this reminded me of among the many colorful jobs I had when I was going through school was that of a bartender. In the movie “Cocktail”, Tom Cruise made bartending look sort of cool. And to an extent it is… but for the smells of dirty bar rags that still sometimes haunt me in my dreams. It also helps to have the physical stamina of a 20-something and be able to be cheerful and attentive past midnight. Or 4am.
Then there’s another aspect of being a bartender that isn’t so fun: having to shut someone off. That’s when a bartender has to make the call that a patron has had a wee-too-much and can be served no more alcohol. Any bartender will tell you – this aspect of the job stinks. But I see this emerging attitude about lenders and their reckless credit underwriting standards that resembles the same often righteous indignation I see when I would tell people they were on their last drink of the night.
Can Declaring Bankruptcy Improve Your Credit Score?
Monday, April 19th, 2010
Clients will almost always ask me what the impact a bankruptcy filing will have on their credit score. Usually, the question I am asked is “will I ever be able to get a loan again?”
In all my years of practicing bankruptcy law, the response has never changed. It will depend on two things: that which the client can control, and that which the client has no control.
A client who has filed bankruptcy should use credit wisely after bankruptcy. Got a car payment? Always be on time. Got a mortgage payment? Never be late and always pay the amount in full. Check your credit report at least twice per year and look for incorrect entries and take prompt action to see that they are corrected. These are the things a client can control. But that alone will not help a client get access to credit.
Guest Blog: Perspectives
Thursday, February 25th, 2010
Today, we have something a different… our first guest blogger: a former client who shares her perspectives on her journey into, through and out of bankruptcy.
CareOne: What’s Behind Those Commercials?
Thursday, February 18th, 2010
As I was watching the news the other night, I saw this commercial for CareOne Credit. The name rang in my head – and then it hit me: I had recently read about them in a case while doing some research Since the judge’s observations in that case and his comments were stuck in my head – and since I am seeing these commercials more and more - I thought I would share them here.
The Case
In late 2006, Debra Wood was struggling with debt – and after apparently seeing an ad, she contacted CareOne Credit Counseling. When she contacted CareOne, she was referred to Consumer Law Associates, LLC (CLA). CLA then gave her documents to start her into a debt management plan – which would be administered by Ruther and Associates, LLC (RA). They describe themselves as a “national law firm dedicated to consumer debt reduction.” As the facts of this case unfold, you’ll see what that description is inaccurate – at best.
Short Sales & Foreclosure: Perception & Reality
Monday, February 8th, 2010
Many people struggling to pay the mortgages are motivated to consider a short sale. I am often told that it is considered because of their concern that if a short sale is not done, and the property is allowed to foreclosure, they will never be able to own a home again. Today, I want to tackle the perception of that…and present a bit of reality, from my point of view.
A Massachusetts Foreclosure Moratorium? Yes, but…
I admit that I have a stick in my craw. In May 2008, Massachusetts (a non-judicial foreclosure state) imposed a 90 day cooling off period to give time for defaulting home loan borrowers to work with their lenders. This summer, that period of time got extended to 150 days. Now, there are calls for a “foreclosure moratorium” in Massachusetts. I am not a fan of what I think is this inevitability, but before y’all think I’ve really fallen off my rocker, let me give you my perspective, and why I think we need to not just think about the moratorium – but for who and for how long.
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Tags: Commentary - Legal, Consumer Protection, Consumer Rights, Credit and Debt, Homes, homesteads and real estate, Modifications and Workouts, Mortgages and Foreclosures, Yep. We're in trouble.
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