Tricks Credit Card Companies Use That Can Lead To Bankruptcy

The credit card companies have many tricks available to maximize the profits seen from each consumer, and many of these tricks could result in financial difficulties or even a bankruptcy filing. Your financial health is important and financial problems can take a large toll on your family and household budget. The credit card companies do not care that you may be struggling, or that millions of Americans have lost everything including their jobs, homes, and even their retirement savings. The card issuers only care about getting their payments, and use every opportunity to tack on additional fees. There is a solution to devastating credit card debt, and understanding the common tricks used by credit card companies can help you avoid financial problems with the debt owed on any credit cards.

Credit cards are a responsibility, and this area of debt is one that pushes many consumers into large amounts of debt. The first trick used is for international travelers, because there may be a fee as large as 3% imposed just to use your card in a foreign country. This trick can be avoided by reading your card agreement and terms very carefully to identify the costs involved with using your card in another country. You can also call the card company and ask questions if you are not sure whether any fees or additional charges apply.

The fine print is a popular place for card issuers to place any unfavorable terms and conditions. Always read all of the fine print before agreeing to the terms. This will prevent any nasty financial shocks later on after you have used the card. Many credit cards offer an interest rate that states the card interest rate “could be as low as 10% or even less”. Usually in the fine print there is a clause which explains the true facts. While some consumers may receive a card with this low interest rate the fine print points out that the rate “ could be as high as 20% or even more.

Cash back is another trick that many card companies use. Credit cards offer anywhere from nothing back up to 5% or more, but this may be too good to be true for many consumers. The card issuer will often set up the cash back percentage in tiers with two or more levels. To get the maximum percentage of cash back you will normally have to spend a certain amount per month, and this amount is usually pretty high. If the minimum amount requirement is not met for the month then you may find you are not getting as much cash back as you expected. Use caution with balance transfers as well, because you may be charged a fee to transfer the balance which could be 3% or more.

Many consumers want to pay their bills and live debt free, but the touch economy and high unemployment rate mean that times re tight all over. When credit card rates and fees jump it affects consumers in a devastating way. Credit card debt does not have to ruin your life though, there are answers and resources available to help you get out from under your debt. The bankruptcy attorneys at West & Hurley can help provide a free consultation to help you find the right answer for your unique credit card debt problems and individual circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Credit Card Companies, The CARD Act, And Bankruptcy

When the CARD Act was passed it was regarded as very important legislation for consumers. The CARD Act placed limits on the interest rates and the fees that credit card companies can charge and the consumer disclosure required, but have these companies changed the way business is done because of this act? The CARD Act was implemented in stages, with the final stage started in August of 2010, and the credit card companies have already devised ways to get around the new restrictions and regulations so that high interest rates and excessive fees are still a problem today.

The CARD Act sets many new rules and restrictions for credit card companies, including:

•     Inactivity fees are no longer allowed
•     Late fees may not be in an amount considered excessive
•     Only a single penalty fee may be applied by the card company at any given time
•     Consumers have a 21 day grace period for all purchases before interest can start to accrue
•     Fees for exceeding the credit limit of the card can not be automated
•     Consumers must receive at least 45 days notice before card issuers can change any major terms of the credit card
•     Raising the interest rate of the card is not allowed until a payment is past due by at least 60 days

The credit card companies have already found methods that do not violate the CARD Act but increase the fees and interest rates charged. These companies are very creative on this front, and while the following methods do follow the regulations outlined in the CARD Act technically they are still devious and greedy. As long as the required notice of 45 days is given your credit card company basically has license to raise your rates and change the rate type at will. The issuer of the credit card may:

•     Convert your card from a fixed interest rate card to a variable interest
•     Raise your card rate to an enormous 29.99%
•     Make other changes regarding your interest rate

All of these moves are legal as long as the credit card company gives you notice at least 45 days before these changes take effect. Many card issuers have already started sending out mass mailings alerting consumers that their card terms and rates are changing. This leaves many consumers in a bind, looking for answers and debt relief. Credit card debt can be handled using either bankruptcy or debt consolidation and the first step should be consulting with an experienced attorney in these areas. If you could not pay the payments when the card interest was lower it will not be possible to make the payments once the card issuer jumps up the rate. Get sound legal advice as soon as possible to ensure that debt collection practices do not add to your financial problems.

The bankruptcy attorneys at West & Hurley can help provide a free debt consultation to help you find the right answer for your unique debt problems, credit card issues, and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

The IRS Is Going After Back Taxes Owed In Ohio

The unpaid tax statistics from the IRS are shocking, and show that around 20% of federal and state income taxes are unpaid in any given year. This means that approximately $300 million dollars a year is not paid and the IRS issues around 600,000 liens for unpaid taxes each year. When the loss to all states in the USA from these unpaid taxes are calculated this means around $60 million is owed to the states including Ohio.

The information released by the IRS concerning unpaid taxes does not include personal or identifying information, or the reason why the taxes were not paid. The Internal Revenue Service is using all means available to track down individuals and companies that are delinquent in taxes and collect on these debts. This is done by using automated methods in most cases, due to funding and personnel cuts in government agencies. The automated methods used can include garnishments on wages and bank accounts, property seizures and tax liens, and other methods. First attempts to collect unpaid taxes generally result in around 10% of debtors paying off the taxes owed, and 90% unable to make this payment.

The truth is that the number of prosecutions for delinquent taxes and tax fraud are down significantly. The IRS receives almost 250 million tax returns each year, and these will typically result in less than 1,500 individuals and businesses being indicted so the percentage of prosecutions is very low. This is also caused by the changes in the law that were enacted in 1998. These legal changes were implemented to stop abuse by the IRS and makes it more difficult for the government agency to seize property.

In many cases bankruptcy can not eliminate unpaid taxes, but this is not always true. In some situations it is possible to list the unpaid tax debt in the bankruptcy petition and have this debt discharged. Every debt situation is different and unique, and the right solution in one case may be the wrong answer in another. A consultation with a debt consolidation and bankruptcy attorney can help you get the answers you need for your specific financial problems and back tax situation.

The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation and legal advice to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Consumers In Ohio Are Better Protected From Predatory Lending Now

According to President Obama the latest financial reform bill passed by Congress is the toughest set of financial reforms since the Great Depression ended, and many view this bill as a strong one. In fact many experts were surprised at the strength that the bill actually has, and comment that consumers across the USA will be better protected from lending practices which are predatory or abusive in any way. These practices are the same ones held responsible for starting the economic and financial problems the United States is still struggling with today. The number of bankruptcy cases for individuals, married couples, and even small businesses has been staggering in the last few years as families and small business owners struggle just to stay afloat.

Some experts believe that the financial reform bill is adequate but others argue that this should be the first step of many, to avoid any future recessions that affects millions of Americans. A number of experts believe that financial collapses will happen regularly and can not be avoided, but these collapses are devastating to a majority of Americans on every level. This latest recession and economic downturn has caused millions of individuals to become unemployed, many lost all of their retirement savings, and the number of home foreclosures have been at record highs. The housing and employment markets are tanked and many are turning to bankruptcy as the only solution available for debt relief. These are people who have always paid on time and suddenly can not make ends meet.

The economic downturn was especially hard on Ohio and the residents of this state. High unemployment and foreclosure numbers tell the story of the struggle to survive through these tough times. The financial reform bill is intended to prevent this in the future, but it is still too soon to tell if this bill will help Ohio or not. If you find yourself struggling to pay your bills or make ends meet there is help and solutions available. Debt consolidation and bankruptcy can both stop your financial struggles and help you get back on your feet.

The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation or bankruptcy consultation to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Marriage, Money, Debts, And Bankruptcy

Almost all consumers in America have been affected by the economic downturn, regardless of their marital status. Many married individuals have found that tough financial times equals an increase in stress and marital problems, and financial issues are one of the leading causes of divorce in the USA. The bleak outlook, uncertainty, and financial insecurity can combine to cause you to turn to bankruptcy, and this step can also have an effect on your future spouse as well. If you are planning on getting married what can you do if your intended is swamped in debt?

In many cases you can not be held responsible for debt that your future spouse has incurred, but this is not always true and in some cases you could find yourself on the hook for a debt as a result of your marriage. Consider the following hypothetical situation: Your new husband or wife owes $70,000 for debt on various credit cards plus some other debts that are unsecured. Your spouse earns $35,000 a year, which is less than the average median income in the area where you live. With only the income of your new or intended spouse a chapter 7 bankruptcy would be possible and the Means Test would be passed. If your income is $80,000 a year and you do not have any debt that is not secured then this could affect the outcome, and the Means Test may be failed because of the additional income that you bring in.

The Means Test is used to determine whether a debtor has the ability to pay back some or all of the debts in the bankruptcy case. If you can not pass this test then you can not file under chapter 7 of the bankruptcy laws, and you may have to file under chapter 13 as well. If your combined income is higher than the allowable income then you will fail the Means Test. The income considered with the Means Test includes family income, and any income of a spouse must be reported. This is true even if the spouse does not want to file for bankruptcy and does not have any unsecured debts that are owed.

In the hypothetical situation shown above the marriage would cause the spouse with debts to fail the Means Test and probably prevent a Chapter 7 filing. If chapter 7 is not possible then chapter 13 bankruptcy may be the only option left. Chapter 7 is a liquidation bankruptcy, but under chapter 13 you will have to utilize a repayment plan that lasts between 3-5 years. This means that you could marry yourself into the debt, and be forced to live by the repayment plan even if the debts are not yours but belong to the new spouse.

When bankruptcy is needed because of high debt amounts any marriage should be carefully considered and planned. An experienced and qualified bankruptcy attorney can advise you on the best timing for the marriage and the bankruptcy filing. It may be beneficial for the individual with the debts to file for bankruptcy before the marriage or even cohabitation. This may give a more favorable outcome to the Means Test and allow the debtor to file under chapter 7. On the other hand marriage can increase the household size, and this may offer advantages in some situations. The higher property exemptions allowed for married couples filing for bankruptcy can be beneficial for some individuals but not for others. It is important that debts and financial planning are addressed before you say I do, so you do not end up in divorce court in the future or end up acquiring a significant amount of debt.

If you are considering marriage and you or your intended have a large amount of unsecured debt then a qualified bankruptcy attorney can help advise you on the best timing for the wedding. For some couples marriage can complicate debt and financial matters and cause extreme stress but other couples may benefit by getting married before filing for bankruptcy protection. The bankruptcy attorneys at West & Hurley can help provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

Americans And Mortgage Servicers: An Unhappy Relationship Right Now

Reports show that private sector jobs are on the rise, which is a welcome change from the last few years. The mortgage industry can not say the same, because of the recent investigations and revelations about abuse and fraud by mortgage servicers on a wide scale basis. A recent article by the New York Times detailed all of the shocking abuses that homeowners have faced in the last few years and the nightmare experiences that these homeowners have gone through.

The article in the New York Times described mortgage practices that were highly dubious if not outright criminal yet were commonly used by many major mortgage lenders. These practices include forging signatures on important mortgage documents and foreclosure paperwork, fraud concerning the execution of documents on a widespread basis across the industry, being deceptive in statements made concerning paperwork correction and problem resolutions, and misrepresenting the fees charged to consumers. According to the article these practices had become normal operating procedure for even reputable lenders at times instead of the exception, and this was true all across the USA.

According to the Times publication the federal government has come up very short as far as investigating and regulating mortgage lenders and servicers. The article goes on to state “It’s nice to know some attorneys general are taking matters into their own hands. One is Martha Coakley of Massachusetts, whose lawsuits against big banks have unearthed important details about dubious mortgage practices.”

Martha Coakley is not the only Attorney General who has taken steps against the unsavory mortgage lenders. The Times article states “Another is Catherine Cortez Masto of Nevada. She filed a case against Morgan Stanley that was settled last year, generating as much as $40 million in monetary relief for borrowers. She also participated in a suit against Wells Fargo that resulted in $45 million in principal forgiveness for Nevadans. And she has a case pending against Bank of America. Last month, Nevada Attorney General Catherine Cortez Masto sued Lender Processing Services, the huge default and foreclosure processor that works behind the scenes for most large banks. With this case, she demonstrated how enlightening an in-depth study can be.”

Lender Processing Services is one of the biggest perpetrators against homeowners according to Nevada Attorney General Catherine Cortez Masto. The article in the New York Times went on to say “The complaint, which came after a 14-month inquiry, contends that L.P.S. deceived consumers by committing widespread document execution fraud, misrepresenting its fees and making deceptive statements about its efforts to correct paperwork. Investigators interviewed former L.P.S. employees and customers and examined foreclosures the company had worked on. ‘L.P.S. played a critical role in the deceptive foreclosure practices that have harmed Nevada homeowners and burdened Nevada courts,’ the complaint said.”

The result of the actions taken by these Attorney Generals may not help many homeowners already faced with foreclosure or eviction. Bankruptcy may be the only way to save your home if you have been the victim of foreclosure or eviction based on mortgage documents that are false, inaccurate, forged, or fraudulent. Many of these same lenders are dragging their feet on mortgage modifications, even in cases where they are supposed to work with homeowners. Military families have been foreclosed on while the military member was deployed even though this is illegal.

If you are having financial difficulties and find that you have problems making your mortgage payment each month, or you are worried because you may be facing a foreclosure in the near future, then bankruptcy may be the best option in many cases. This step may help you save your home, and this may be true whether you file under chapter 7 or chapter 13. The automatic stay which goes into effect when you file bankruptcy also applies to your mortgage, and this stay will prevent any foreclosure until your case is resolved.

A qualified bankruptcy attorney can help you get your finances under control again, retain your home if possible, and get a fresh start when you need it most. The bankruptcy attorneys at West & Hurley offer a free bankruptcy consultation to help you find the right answer for your unique debt problems and circumstances. Visit http://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.