How to Avoid the Three Dangers Facing All Families in Debt

How to avoid bankruptcy

Instructions

Difficulty: Moderate

Things You’ll Need:

• An open mind
• A list of your creditors
• Knowledge of your current financial situation

1. Learn the most important secret most creditors/predators don't want you to know: If you're behind more than four months on your credit card debt, your credit score is already down the tubes. So, don't get four months behind. Unsecured debt is easier to deal with than secured debt, because if you file a chapter 7 wipe out bankruptcy, most unsecured creditors will get nothing so you have more leverage. A secured debt is like a house or a car or even an in-house credit card. If you don't pay your bill, then the creditor/predator can take your property.
2. Learn how to dispute your own derogatory credit information: The Fair credit and reporting act says that all three credit reporting bureaus have only 30 days to respond to your disputes. Don't waste time with your original creditors. And send you disputes in writing by CERTIFIED MAIL. Don't use the email dispute systems. There is no way to prove that you disputed the items. If Equifax, Transunion or Experian do not respond within 30 days, you can take them to small claims court and sue them. You should also threaten a law suit in your dispute letter.
3. Know the one key to protecting your assets if you are sued by credit card companies: Create a coporation-Nevada or Wyoming make the information about corporate owners private. If you don't co-mingle assets between corporate funds and personal funds, you will be able to keep your corporation legitimate. Then get an EIN number from the IRS for free. I had a client who went to a lawyer and that lawyer charged the client 1,000.00 for an EIN number-what a joke. You can get one for FREE online or by calling the IRS. Once you get proof that your corporation has been formed and your EIN number, open up a corporate bank account which will survive attacks by creditors.
4. Understand your legal rights about creditors/predators harassing you: It is ILLEGAL for a creditor/predator to harass you. I know of a lady in Texas who owed a collection agency less than one thousand dollars. After their repeated, harassing phone calls, she had a heart attack and won more than one million dollars in her lawsuit. You can threaten similar legal action. You can also tell the creditors/predators that you are not allowed to take personal calls at work.

Tips & Warnings

• If you have more questions, feel free to call me at 415 756 4108 or email me at [e-mail]
• Some situations require counsel by a licensed attorney in your state. This is not to be contrued as legal advise or a fix all for all problems.