Credit Counseling

How Long Does a Bankruptcy Stay on Your Credit?

2020-06-12T16:20:36+00:00By |Comment(s):Comments Off on How Long Does a Bankruptcy Stay on Your Credit?

Though filing for bankruptcy can be a stressful and even frightening experience, one of the biggest concerns people in this position have is the negative effect it will have on their credit. Not only will filing lower the credit score, but it will also make it difficult to secure loans or apply for credit cards in the future. But this is not a permanent issue, and eventually over time, credit can be rebuilt. Of course, how long bankruptcy stays on your credit depends on which type of bankruptcy is filed.

Chapter 7

With a chapter 7 bankruptcy, a person’s non-exempt assets will have been sold, and the proceeds will have been divided among any creditors. This process may take a few months to complete. Over time, these debts will slowly lose their

Credit Counseling and Debtor Education Courses Required for Hawaii Bankruptcy

2020-06-12T16:20:37+00:00By |Comment(s):Comments Off on Credit Counseling and Debtor Education Courses Required for Hawaii Bankruptcy

There are a number of steps for individuals to undertake when filing for bankruptcy protection in Hawaii, not the least of these being credit counseling and debtor education. Below we will cover, in summary, the key differences between these two important requirements and what is expected of an individual who is filing for bankruptcy protection as it applies to credit counseling and debtor education.

The Difference between Credit Counseling and Debtor Education

Credit counseling is counseling you must obtain before you file your bankruptcy petition (pre-petition), whereas debtor education is the education undertaken after your petition has been filed (post-petition), and it is a requirement of your discharge being issued. The focus of credit counseling is on your current debt and potential ways to avoid bankruptcy. Debtor Education’s focus is on how

I Have to Go to a Credit Counselor-What Does That Mean?

2020-06-12T16:20:37+00:00By |Comment(s):Comments Off on I Have to Go to a Credit Counselor-What Does That Mean?

When you file for bankruptcy, one of the conditions of having your bankruptcy completed and your debts discharged is for you to meet with a credit counselor or attend an approved financial management class.  Be certain that whatever class you sign up for is an approved course or the court will make you take another class.  You will also need to meet a debtor education requirement.

Credit Counseling

Before you can file for either a Chapter 7 or a Chapter 13 bankruptcy, you will have to complete a credit counseling course.  This has to be done within six months before you file the necessary paperwork.  Again, the course you choose must be an approved course and may be taken in person, online, or over the phone.  The certificate

Plan Your Finances Using Bankruptcy

2020-06-12T16:20:38+00:00By |Comment(s):Comments Off on Plan Your Finances Using Bankruptcy

The Difference Between Chapter 7 and 13

Just because you are filing for bankruptcy doesn’t mean that you are giving up your financial future.  It is important to know the main differences in the way that Chapter 7 and Chapter 13 bankruptcy will affect your debt.  The prior will eliminate all your debts and give you a completely clean start, while the latter will result in the creation of a repayment plan for your debts that suit your budget.  Both these plans will allow you to keep your assets and allow you to plan your financial future properly.

What To Do Before and After

In order to take control of your financial future after bankruptcy, there are a few important things you will need to do.

  • 1)      Budget before. Before you file

Credit Counseling Courses

2020-06-12T16:20:39+00:00By |Comment(s):Comments Off on Credit Counseling Courses

A credit counseling course can be an important essential before and after you file for bankruptcy. When you file for bankruptcy, the courts will mandate that you attend credit counseling sessions.  You may think that it is stupid and a waste of time, but it is a requirement if you want to qualify for any kind of bankruptcy.  If you decide not to attend these counseling sessions, your petition for bankruptcy may be dismissed by the court.

When to do it?

If you decide to file for bankruptcy, you will need to attend a credit counseling course and successfully complete it at least 24 hours or more before you file the initial petition for bankruptcy.  If you do not complete it, then you may not be

The Dangers of Consolidating Debt for Debt Relief

2020-06-12T16:20:39+00:00By |Comment(s):Comments Off on The Dangers of Consolidating Debt for Debt Relief

With so many people in Hawaii facing debt challenges, you may be searching for a solution that will lead to being debt free. Among the many solutions people have been looking into is debt consolidation. There are several forms of debt consolidation, but none of which are that appealing when you take into consideration the ways in which it will affect you overall. Make sure you are considering your options completely in order to get the kind of help that will actually lead to getting out of debt.

Debt Consolidation Using a Second Mortgage

Homeowners are often lured into the idea of getting a home equity line of credit in order to pay off debts. While this may give you all the money you need to pay off your creditors, it may

Credit Counseling Is Helping Debtors to Manage Finances

2020-06-12T16:20:40+00:00By |Comment(s):Comments Off on Credit Counseling Is Helping Debtors to Manage Finances

One of the main things that people have to do when they file for bankruptcy is to attain credit counseling. This is a service that the individual will have to pay for and attend in order to finalize their bankruptcy. When going through this kind of counseling, people learn to make better decisions about the kind of new debt they are creating as well as how to create and stick to a budget. This kind of counseling allows the individual to avoid getting into another circumstance in which they will have to go through bankruptcy again.

When asked what was the biggest benefit received by attending credit counseling, people have reported that they learned how to accurately make a decision about new debt. Before attending the counseling, there was a

All Walks of Life

2020-06-12T16:20:41+00:00By |Comment(s):Comments Off on All Walks of Life

April 6 brought news that former NFL star defensive lineman Warren Sapp has filed for Chapter 7 bankruptcy protection.  This serves as a good reminder that, contrary to what many of us may have thought, the individuals and families that file for bankruptcy protection come from all walks of life and file for all varieties of reasons, including, illness, death in the family, and accidents.   The protection and the fresh start afforded by bankruptcy allows many people the chance to catch their breath, get back on their feet,  then return to pursuing their financial goals.  You may have heard of the following people who filed for bankruptcy protection:

  • Abraham Lincoln
  • Henry Ford
  • Walt Disney

If you’re stressed out and losing sleep over whether bankruptcy is the right decision for you, then please give

Collection Agencies Win Free Trips by Harassing Borrowers into Unreasonable Terms

2020-06-12T16:20:41+00:00By |Comment(s):Comments Off on Collection Agencies Win Free Trips by Harassing Borrowers into Unreasonable Terms

On March 25, Bloomberg.com published a troubling report detailing the incentives offered to collection agencies attempting to collect on delinquent debts.  While it should come as no surprise that collections agencies are pushing the legal limits with their methods, at Abelmann Law we find it particularly concerning that the agencies are failing to advise individuals of the various repayment options available to them.  In many cases the result is increased financial hardship for families that are already struggling under a heavy debt burden.  Meanwhile, “successful” debt collection agents are rewarded with cash bonuses, foreign trips and gift certificates.
While the above-mentioned report focuses on debt collection practices in the student loan industry, we think you will agree that the problem does not end there.  If you are being

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