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Debt Quotes to Motivate You

Posted on Saturday, 5th February 2011 by Eden Fryett

Are you worried because you have huge amount of debts and you actually do not know how to pay them? Well, debts can be a cause of depression for someone, and if you think you belong to this someone, then you should not be over bothered because of them. Just work harder and make a plan to eliminate your debts. Just take your debt problems one-step at a time. You do not need to rush things out because if you do, you can have financial mismanagement that may cause you worse debts situation. To motivate you and give you some inspirations, here are some helpful quotes about debts.

Tags: Debt, Debt Quotes
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What is “Right of Offset?”

Posted on Tuesday, 1st February 2011 by Toby Duncan

Did you read your contract carefully when you signed up for your credit card? How about your mortgage? Car loan? How about your checking/savings account?

Chances are, there was a “Right of Offset” provision in the contract that you were not even aware of. Right of Offset is the bank’s way of ensuring that it is paid the money it is owed. Here’s how it works. Let’s say you have a credit card with Bank of America and a checking/savings account. If you miss your credit card payment, Bank of America will offset your checking/savings account and pay itself.

The offset provision only applies if it’s the same bank. In another words, if you have a credit card with Chase, Chase can’t take money out of your Bank of America account. Only Bank of America can. So, what can you do to protect your hard earned paycheck?

Segregate your funds. If you do have a checking/savings account at the same bank where you owe money, move your money. Open a new ba

How to answer a credit card debt summons

Posted on Monday, 31st January 2011 by Lucy Hales

This is all I hear, summons there and summons here. Unlike the house which you can still walk away from in most cases, with severely damaged credit history, delinquent credit card debt will more than often damage your paycheck and liquid assets. If you are gainfully employed, lenders lawyers or debt collectors will eventually summon you to court. Here, I am going to give an idea as of how to answer a credit card debt summons. You must understand that this is not a joke, like a speeding or parking ticket. Ignore a summons at your peril. The court system will chew you up and spit you out, unless you are prepared.

If you received summons for credit card debt, this is not the time to lament on how you get to this point.

1. If you were served with a summons, forget debt validation
A debt validation letter sent to the law firm or collection agency will not stop the court case. This is exactly how NOT to answer a credit card debt summons. The only thing you should do at this point is to write a coherent response on each point of the complaint.

U.S. Supreme Court Makes It More Difficult To Pass Means Test By Reducing Car Allowances

Posted on Monday, 31st January 2011 by Toby Duncan

The U.S. Supreme Court issued a decision on January 11, 2011, making it more difficult for debtors to pass the Chapter 7 means test. The means test includes two car related deductions from income. Debtors may be eligible to deduct from income an allowance for car-operating costs and a separate allowance for car-ownership costs. The amount of the debtors allowances are based upon published table of National and Local Standard as well as their actual expenses.

The Supreme Court case involved the means test filed by a debtor who owned a car free and clear of any debt and liens. The issue in this case was whether such debtor can claim the car-ownership allowance when the debtor has no monthly car payment and his only car expenses are those related to car operations.

In the past, many attorneys, myself included, claimed both a car-operating and car-ownership allowance even through the debtor had paid off his car or leased a car. The car-ownership allowance (a bonus deduction for debtors without car payments) frequently was the deciding factor in the debtors eligibility for Chapter 7 bankruptcy. Read more…

Tags: Car, Means Test, Supreme Court
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Minnesota Event Planner Files for Chapter 7 Bankruptcy

Posted on Sunday, 30th January 2011 by Eden Fryett

Paul R. Ridgeway founded the event planning firm that has worked with the National Football League on transportation, and the businessman once held the limelight while heading a campaign to keep the Minnesota Twins baseball team in Minneapolis.

Now, Ridgeway has filed for Chapter 7 bankruptcy, as the Minneapolis St. Paul Business Journal reports that the Ridgeway International Inc. founder has struggled with liabilities that outweigh his assets, and that his business offices have been foreclosed on.

The mortgage on the business headquarters is worth a little over $1 million, and it has been foreclosed on by U.S. Bancorp.

The Chapter 7 bankruptcy filing is not necessarily a surprise. News of Ridgeway’s financial issues came out in early 2009. The Minneapolis Star-Tribune reported that the charismatic businessman had a growing list of unpaid bills on his ledger and was struggling with debt.

Back then, the Star Tribune said that he owed money to members of a high school football team that parked cars during a sports tournament. T