Credit Card Debt FAQs - Bankruptcy Lawyer For New Hampshire

Credit Card Debt FAQs

Last year, the average household credit card debt was more than $15,000. That means that consumers in the United States owe over $11 trillion. Needless to say, more and more people are looking for answers on how to deal with mounting credit card debt. In New Hampshire, there is a statute of limitations for how long a collection agency has to contact you regarding a debt.

These frequently asked questions should help you get started.

Q: When paying off my credit card debt, is it OK to pay only the minimum monthly amount?

A: Unlike a lot of other debt, credit card interest can actually increase over time. Paying the minimum payments each month may trap you further in debt depending on the type of card. While you may be able to transfer a balance on a high interest rate card to a lower interest rate card, you need to be aware that the introductory rate will likely increase at some point in time. If you are considering filing for bankruptcy, you should not perform any balance transfers. 

Q: Which credit card should I try to pay off first?

A: This will depend on your goals and what types of debt you have as well as the interest rates on your current cards. After you have paid the minimum required monthly payments for your various loans, credit cards, or mortgage, any extra money should be applied to one specific card. Choose the card that has the highest interest rate for the best results.

Q: Can I open a new line of credit to pay off an old credit card?

A: This is very risky. There is no guarantee that it will be worth it since your new card will also have an interest rate that could rise over time. If you are considering this as an option, it is probably best to look into your options in bankruptcy.

Q: I saw/heard a commercial about 24-hour debt elimination, will that work?

A: These types of predatory advertisements are usually fraudulent. Eliminating any type of debt takes time. You can weed out the scams because they generally brag about a quick fix and ask for money up front without considering the specifics of your needs. You don’t have to pay someone to get you out of debt quickly. More times than not, you’d be better off using that same money to just pay down your debt or hire an attorney. Steer clear of companies that claim they can eliminate years' worth of debt in a few hours or days.

Q: Can hiring a credit card debt settlement company affect my credit score?

A: Like bankruptcy, debt settlement can potentially hurt your credit score if you go through a debt settlement company. Some of these debt settlement companies advise you to skip payments or attempt some sneaky maneuver to avoid your debt. This will only make your situation worse. It is important to find a reputable company.

Q: Can I use a secured credit card to improve my credit?

A: Secured credit cards can be a good way to start rebuilding your credit. Unlike a traditional credit card, secured credit cards require money to be deposited for collateral. For many people with bad credit or a lack of credit history, this can be a good option for improving your credit score.

Q: What should I do if I am being harassed by collection agencies?

A: If you are being harassed by a collection agency, take note of when and how many times you have been called as well as what number they are calling from each time and the time of day. If possible, get the representative’s name. The FDCPA (Fair Debt Collection Protection Act) is meant to protect the rights of Americans. It specifies how and when a collection agency or creditor can get in contact with you.

Credit card debt is easy to get into, but difficult to get rid of. Stay informed of your rights and responsibilities. If you still have questions, or would like more information on credit card debt in New Hampshire, contact a qualified bankruptcy attorney.

By Bankruptcy Attorney Kelley


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5 Steps To Stop Foreclosure in New Hampshire

There are few pieces of mail more daunting than a foreclosure letter. Getting a notice of possible foreclosure can be scary, but there are steps homeowners can take to relieve the stress of a foreclosure in New Hampshire. Although you may be struggling to make your monthly mortgage payments, you do have options.

In New Hampshire, the process to stop foreclosure can be relatively fast. Be sure to do your research and find out your options before you allow a lender to foreclose on your home. If you are at risk of losing your home, follow these 6 simple steps.

1. Get in touch with a housing counselor or attorney immediately. A housing counselor or attorney can give homeowners specific, personalized advice to help stop foreclosure. A housing counselor can evaluate your needs and point you to some helpful resources. The best way to utilize a homeowner’s skills is to be open about your situation. Make sure that you answer questions honestly and let your expectations and limitations be known up front to avoid any confusion.

2. Prepare a hardship letter. A hardship letter gives the ender an overview of your circumstances. Although a letter alone will not be enough to stop a foreclosure, it can be a good start. Your housing counselor can help you draft a hardship letter to present to your lender in conjunction with other documentation. The letter will be a detailed account of the circumstances that led up to your current situation as well as what you are asking for specifically in order to get caught up on your payments. Remember, it is best to work wit your housing counselor or a foreclosure attorney to develop a strong hardship letter.

3. When at all possible, try to contact your lender to explain your situation. Reaching out to the lender shows that you are making a good faith effort to pay. This is also a good idea because it immediately alerts the company to your circumstances so they can start to work with you. Contacting the lender can be the first step to successfully stopping a foreclosure in New Hampshire. Most lenders are more interested in letting you keep your home than moving forward with foreclosure procedures. What many homeowners don’t realize is that a foreclosure can cost the lender upwards of $20,000, not to mention the time and trouble of going through the process. This is especially a good idea for those who have a temporary financial burden such as being let go from work or an unplanned medical expense.

4. Get the amortization period extended. If you can do this, it means that the life of your loan is longer which can result in lower minimum payments each month. For many homeowners in New Hampshire, this is an alternative that will save their home.

5. Inquire about forbearance. Forbearance is similar to deferring your student loan repayment until after graduation. You can have the option of making partial payments or no payments during an agreed upon period of time. You will still be responsible for the entire loan amount, but forbearance can help prevent foreclosure on your home. The terms of each forbearance agreement will depend on the details negotiated with your lender.

6. Attend a New Hampshire HUD foreclosure workshop. The state of New Hampshire has options and resources for homeowners who may be facing foreclosure. The Foreclosure Prevention Initiative is a great place to get started. This program was started in 2012 to help homeowners who may be at risk of foreclosure.


Foreclosure may allow your mortgage lender to seize your property, but you can stop foreclosure with these steps. Understanding your rights and responsibilities concerning a possible foreclosure can make a hue difference. Saving your family’s home is worth it.

If you have already received a foreclosure notice, you should take steps to address to your situation immediately. Find a qualified bankruptcy attorney in your area for a office for a free, confidential consultation. You don’t have to deal with this on your own.

By Bankruptcy Attorney Christopher W. Kelley


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5 Ways Bankruptcy Might Affect Your Credit - It’s Not What You Think

Bankruptcy And Your Credit Score- FAQ's

When thinking of filing for bankruptcy, you might have several questions particularly concerning your credit score. Are you wondering how it will affect your credit score, or for how long you’ll have to ‘suffer’ the effects of having bankruptcy noted on your credit history? There are some surprising answers to these questions.

How will bankruptcy affect my credit score?

After filing for Chapter 7 or Chapter 13 bankruptcy, many individuals are perturbed about the effects of bankruptcy on their credit scores. The severity of damage that bankruptcy will do is dependent upon on your credit reports prior to bankruptcy. If you had a relatively good credit report initially, bankruptcy may cause a huge hit with your credit reports.

If you have a high ratio of debt-to-asset then your credit will not be affected greatly. If you plan to file for bankruptcy with more debts and less assets, your credit score will only be moderately affected.  It is always best to consult the advice of a professional to make sure that you should file for bankruptcy. For bankruptcy statistical data in your area visit U.S. Bankruptcy Courts Site.

Can bankruptcy increase my credit scores?

Don’t go by the popular myths of bankruptcy automatically leading to a terrible credit score.  Why?
There are many cases where people saw an increase in credit scores! In fact, many people recover in a range of 12-24 months following their release.

You can always make up for your credit scores by paying and clearing all your debts within a proper time frame. The credit companies will check your payment history, outstanding debts, and credit history while calculating the scores. After getting released from bankruptcy try to sort out as many debts as possible.

It is important that you organize your debts, make sure you don’t fall under these common misconceptions:
●    50% of individuals believe that bankruptcy excuses you from paying off credit card debt.
●    Furthermore,     38% of individuals believe that creditors will be just as likely to work with you after you have filed for bankruptcy.

Make sure that you do not fall under these false beliefs, as it could lead to a bad decision!

Resources:  Credit Card Debt Calculator

Which bankruptcy is better for my credit score?

There are two types of bankruptcies: Chapter 7 and chapter 13. It is important to know that both Chapter 7 and Chapter 13 bankruptcies have the same exact effect towards the calculation of your credit score.

There are some special cases in which creditors may favor one bankruptcy type over the other. For instance, a potential creditor might feel that an individual clearing all his debts in 7 years under a chapter 13 bankruptcy is more dependable than the one who has filed a chapter 7 bankruptcy.

How long will bankruptcy appear in my credit reports?

If you have filed for a Chapter 7 or 13 bankruptcy then it might appear in your credit reports for a period of 10 years. Again, if you opt for a loan which is greater than $150,000 or a job which has a salary of $75,000 or more, then the credit companies can extend bankruptcy more than 10 years on your credit reports.

How is your credit score, calculated when you file bankruptcy?

When you file for bankruptcy, your credit score, it is calculated by comparing your credit report with other reports of prospective individuals. There are individuals who have high, middle, and low credit scores after bankruptcy. However, increasing that credit score to 700 by managing your payments and debts is very possible with patience and persistence.

By Christopher W. Kelley



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Bankruptcy Lawyer in New Hampshire Launches New Website for Clients

The Law Office of Christopher W. Kelley is pleased to announce the launch of their newly designed website. A top bankruptcy law firm in Nashua New Hampshire, Attorney Christopher W. Kelley has over 18 years of bankruptcy experience and is dedicated to helping people. The new website was designed to help clients find answers to the most frequently asked bankruptcy questions.

The new bankruptcy site is http://www.bankruptcylawyernh.com and offers information for people who are contemplating filing for bankruptcy how to file for chapter 7 bankruptcy, chapter 11, chapter 13, stopping foreclosures & collections calls and much more.

The new website would not be complete without the addition of social media! Attorney Kelley has also launched a new Facebook page, Twitter, Google +, Blog and a mobile version of his site for people on the go.
 
About The Firm                                                              

Attorney Kelley is a lawyer who takes the time to listen to his clients so that he may provide the service and results each client needs and deserves. Attorney Kelley's practice is focused on assisting clients through the bankruptcy process.

Attorney Kelley can assist you to find the best solution for your specific financial problems. There may be options you are not aware of or questions you have about the bankruptcy process. Bankruptcy can give you instant relief from the harassment calls, fear, and anxiety that may have taken over your life. We know how to prevent you from losing your house or car and how to stop harassing collection calls. We are totally dedicated to helping people get a fresh financial start and we can help you. We will give you honest answers about how bankruptcy may help you and what other options you may have to deal with your financial troubles.

Attorney Kelley will listen to your situation and treat you with the respect and dignity you deserve during what may be the most difficult time in your life. When you need options and honest advice because you know you can no longer handle your debt problems on your own, Attorney Kelley can provide the guidance and representation you need to get back on stable financial ground.

Credentials

Attorney Kelley has been licensed to practice law in New Hampshire since 1995. He is also admitted to practice before the U.S. District Court of New Hampshire, and is a member of the National Association of Consumer Bankruptcy Attorneys.

Any person seeking information on bankruptcy is urged to call and speak directly with Attorney Kelley. The Law Office of Christopher W. Kelley offers free consultations.

The Law Offices of Christopher W. Kelley is located at 491 Amherst Street, Suite 22 Nashua, New Hampshire 03063.

“Affordable Legal Representation by an Experienced Attorney Who Listens and Cares”

For more information, email Chris Kelley at kelleylawoffices(at)aol(dot)com, call (603) 637-1453 or visit their Find Bankruptcy Attorney page.

Website Designed By - http://www.legalwebsitesllc.com



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