Collectors have, for example, been known to threaten consumers with arrest, prosecution, and jail time. Not that long ago, a Pennsylvania debt collection agency was busted for illegal practices. It turns out that the company had constructed a mock courtroom and would “serve” consumers with legal-looking papers instructing them to appear in “court.” This may seem like a particularly egregious example of abuse, but such extremes are more common than you might think.

Take jail time, for example. According to a story published by a major business paper, at least 16 states have laws on the books that say those who owe money can go to jail. Debt collection agencies take advantage of those laws, sometimes sending people to jail for debts below $100.

Other horrific stories include a debt collector who threatened to repossess a father’s car on his daughter’s social networking page, and collectors who embarrass consumers by leaving not-so-cryptic voicemail messages that are easily accessed by others.

These examples illustrate the down-and-dirty tactics used by some debt collectors when a debt is legitimate; there are many others that occur to consumers who don’t even owe any money. All too often, companies that buy debt don’t actually have much information about the person who owes the money. They might have a name or a telephone number. The company then taps into vast databases owned by other companies to try and piece together identifying information about the consumer. Oftentimes, they obtain partial information or data that’s simply wrong. When that happens, a debt collection agency might hound a person with a similar name to the person who owes money, or someone who has a phone number once held by a person who owes money. Then the nightmare of repeated phone calls and harassment begins. Sometimes, the debt collection agency even mars the credit report of the wrong person, making it more expensive for that person to borrow money (through higher interest rates), making it more difficult to rent an apartment, or making it impossible to get a job or promotion (through employer credit checks).

What can a consumer do if he or she has been through the wringer with a debt collection agency? First, it’s important to understand that the federal Fair Debt Collection Practices Act specifically prohibits certain behaviors. Second, the FDCPA says that, if a debt collector has crossed the line, the consumer can sue the collector, and receive up to one thousand dollars plus attorney fees. For that reason, it’s important to consult with a fair debt attorney – and it shouldn’t cost a dime. Finally, it’s critical to file a complaint with the state attorney general’s office and one with the Federal Trade Commission. Both agencies track complaints, and use them as a basis for taking the bad players to court. While state and federal agencies can’t represent individual consumers, a pattern of complaints triggers legal action to hold those debt collection agencies accountable.

Sergei Lemberg, Esq. is the Principal of Lemberg & Associates, a law firm specializing in fair debt collection law, lemon law, and other consumer law.

American banks didn’t really have an extra 10% of their outstanding loans paid back; it’s just that once a loan account at a bank remains unpaid for six months, banking regulations require that they write that loan off as uncollectible. America’s debt can lose some of its scary edge without having anyone actually paying off credit card debt. There are other ways in which figures to do with the banking industry can mislead. For instance, you get all worked up about how much credit card debt shrank from between April and June of last year and you are encouraged; and then when you learn about how much it grew with new consumer credit card purchases, and you learn that that figure is twice the figure the total shrank by. Statistics released by the banking industry can be quite incomprehensible to most people.

What are consumers supposed to do then who really wish to turn those figures around by paying off credit card debt? Anyone who finds themselves beginning to lag behind in their payments should start off on the right foot and ‘fess up. They should arrange for a meeting with a credit counselor or a bankruptcy attorney. Doing this gives you a bit of information on what your options are. Doing this doesn’t mean that you need to go and declare bankruptcy. It just means that you are serious about what you owe. You can make a mention of this when you start to speak with your bank and earn a little extra credibility.

Carrying huge balances from month to month and merely scraping by making the minimum payments can be a pretty strong sign that one is heading for bankruptcy. To help salvage the situation, one could consider a debt management plan. This could be a lot better for your credit score than bankruptcy or debt settlement. Credit counselors can often help you work out a repayment schedule that you can manage.

Debt settlement has always been a dangerous option for people to choose. This is where you are offered a plan where you don’t need to pay everything you owe. At these places, you get questionable sounding advice that asks you to skip credit card payments. And they charge substantial fees too for this kind of advice before they actually do anything for you. A lot of the time, people just walk away from these settlement firms having paid the fee and found nothing valuable offered. Thankfully, a new federal law makes sure that these companies are not allowed to charge you up front. You don’t even need their help anymore for a debt settlement program. If you are well past a payment, you’ll get a call from the bank asking if you are interested in a settlement deal.

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Whilst writing a will is one way passing on assets, setting up a trust fund can provide a much more secure framework for asset management: particularly if your familial and financial circumstances are complex. Although more difficult to set up, there are many advantages of selecting a trust fund over a will such as the potential to avoid hefty inheritance tax laws. For others, a trust can protect assets given to more vulnerable beneficiaries.

Below are few examples of how and when trust funds can work in favour of different financial circumstances:

To control and protect family assets:

Doreen, 73, has lived in the same property all her life which is now worth £180,000. Unfortunately, she is now unable to look after herself and requires full term care in a care home. Currently in the UK, care home funding is worked out by each Local Authority through individual means testing. If assets, including property, total £23,000 or more then it is likely the individual will have to self fund their care home fees. Doreen does not have any savings to fund this care and does not want to sell her home. As the donor, Doreen decides to place her cottage in a property protection trust which is to be divided equally between her two grandchildren. Doreen does now not legally own the property and it will not be considered part of her means testing. She now hopes to receive full care home funding from the government.

To secure investments for a certain period of time:

Jill and Peter received bonuses from work totaling £50,000 which they have put into a savings account. They would like to donate this to their two sons towards their university fees. According to UK Inheritance Tax laws, only £3000 per year can be given tax-free as an annual gift allowance meaning their savings will be taxed at heavily. Jill and Peter avoid this by setting up a trust in which the money is to be divided equally between their two sons to solely cover the cost of university fees when they reach 18 years of age. Their uncle in the mean-time will act as a trustee.

When the donor has no obvious inheritors or beneficiaries:

Mary has never married or had children and lives in a sizable estate which has been in the family for generations. Mary would like her nephew Ben to receive her estate but Ben is only 5 years old. As the donor, Mary chooses to set up a trust fund for the beneficiary Ben stipulating that the estate will be transferred on Ben’s 18th birthday. Until then, the estate will be managed by the trustees who are Ben’s mother and father.

When beneficiaries are incapacitated:

John and his his wife are both in their 80s and have one daughter Sue who is mentally incapacitated. The donor or ‘settlor’ John decides to pass on some savings and investments to the beneficiary, Sue. Because she is incapable of managing her own financial affairs, John appoints Sue’s husband and their son as trustees and writes in the trust deeds that assets can only be spent on Sue’s care and hospital fees.

There are various trusts which can be set up and each can be adapted to your personal financial and familial circumstances. When embarking on any financial matter involving HM Revenue & Customs taxes and legislation it may be beneficial to seek impartial and independent financial trust advice.

John T Hughes writes for Independent Financial Advisor, a service that connects consumers to financial advice they can trust, from pensions and annuities to mortgages, investments and savings.

Today I will share with you the seven essential estate panning tools that I have helped clients to establish over the past 30 years. Each has a different purpose, but some or all of them can help you to quickly and effectively get your financial house in order in the event that something happens to you.

Seven Essential Tools:

1. Designated Beneficiary Plans: If you have a very structured mapping of how you want your estate to be distributed, one of the easiest methods to use is a designated beneficiary plan. You can have them attached to brokerage accounts, retirement accounts, savings accounts, life insurance and annuities. Upon death, this designation supersedes the Will or even a trust and can be administered by an executor outside the probate process, which can save substantial money to your beneficiaries.

2. Last Will and Testament: This is the most common document that is used to appoint executors, guardians and spell out the execution and distribution of assets upon someones death. It is a relatively inexpensive document to prepare but may cause the courts to oversee its administration through the probate process if necessary.

3. Living or Testamentary Trust: Trusts are a more detailed and expensive avenue to handle the administration of an estate. A living trust is established and funded while you are alive and may continue after your death. A testamentary trust is outlined and structured through your will and is officially established after your death, if the reasons for the trust creation are still in existence at that time.

4. Durable Power Of Attorney: Everyone should appoint one or more individuals to take care of their financial, legal and business matters for them if they become physically, mentally or medically unable to do so while alive. The document that handles this is called a Durable General Power of Attorney.

5. Health Care Proxy: We also need to appoint one or more individuals to make health care decisions on our behalf if we are unable to make them ourselves. This can be a living will, a health care directive or a health care proxy depending on the state in which you live. It should spell out your wishes about life support, artificial nutrition, etc. You should make sure to discuss these issues with your appointed individuals before they are ever required to act on your behalf.

6. Personal Instructions To Family & Friends: These notarized letters of instruction can cover many topics, from burial instructions to informal personal possession distributions between family members and more. Their primary purpose is to create clarity for your survivors on how you would like things handled upon your death. These letters could allow your family to avoid fighting, bickering and hard feelings after you are gone.

7. Lifetime Gifting Program: All too often, parents leave a sizable residuary estate that must then be administered by executors, lawyers,the surrogate courts and may even incur death taxes. This is where the majority of estate shrinkage occurs. While parents are healthy but older, they can begin a systematic process of annual gifting that can substantially reduce estate size, increase family inheritances and decrease this shrinkage factor.

Summary: The above tools are just an outline for how every adult should begin looking at their estate planning needs. There are many ways to develop an estate plan including using lawyers, legal software programs and online legal services. You might want to start your plans with a good financial adviser to guide your efforts, keep costs down and help organize your estate information.

To discover additional financial and income tax strategies, check out my blog or download your FREE Wealth Expansion Kit by clicking here. The first step to creating wealth is knowing where you are and then charting a path that will enhance your financial strengths and correct your weaknesses.

About the Author:

Keith Maderer is a financial expert and has been a investment and tax adviser in the Western New York area for over 30 years. He is the owner of SENIOR Financial and Tax Associates and the founder of the Maderer Foundation, a private scholarship program.

Keith is also the author of “How To Get Your College Education For Less”. Available on Amazon.com – ISBN No: 978-1-4538-2053-7.

You can get your FREE Wealth Expansion Kit, or check out his blog by visiting http://www.sftaweb.com

What is my return on investment? This is perhaps the single most important question we ask as we contemplate the purchase of stock, interest in a business, a commodity or other financial instrument. There are tables and graphs, projections and prognostications that we have come to rely on when making important financial decisions.

What is the ROI that we seek when we make charitable contributions? Recent research tells us that donor’s primary motivation is NOT based on the tax code. Of course, it is helpful to have tax incentives to give, but most of us would give even without that tax incentive.

For donors, especially donors with long term relationships with charitable organizations, the ROI is Results, Outcomes and Impact. The most gratifying part of giving is to see our donated dollar making a difference, enriching lives, promoting our vision of the world, addressing a need. It is so much easier than you may think to keep your legacy alive even after your passing. You can continue to create a vital ROI through estate giving while at the same time you provide for your family’s security.

Most organizations of long standing have established planned giving programs that will allow you to make a legacy gift as simple as a bequest or as complicated as a remainder trust. Organizations to which you have made consistent or substantial donations in your lifetime would be greatly enriched by a simple bequest or beneficiary inclusion in your will or on one or more financial instruments. Imagine the impact you might have by simply changing the beneficiary of a portion of a certificate of deposit or a life insurance policy. This could be a stated amount or a percent of value.

Non-cash gifts are also frequently accepted. Real estate, appreciated stock, collections, art and vehicles can be included in your will as donated chattel. Organizations vary on their capability of accepting non-cash gifts so some research may be required.

Your family and friends come first! There is no question that providing for your family is your priority but a small gift to a worthy organization can make a lasting impact. Frequently legacy gifts are included in an organizations endowed funds, providing a safety cushion in these rapidly changing economic times. Think of the difference just five percent of one of your assets might make. I suspect that your heirs will be proud to see the results of your philanthropy manifested for years to come.

It is always wise to consult a financial advisor before making a long-term decision. Your trusted advisor will know best how you can fulfill your vision even after your passing. You will find that, with few exceptions, these avenues of giving are revocable. This means that should circumstances change you can easily change your mind. This world is full of uncertainties so isn’t it comforting to know that you can adjust your planned giving to react to the unforeseen? Your plan to leave a legacy gift can be kept confidential between your advisor or attorney and yourself. Only three percent of legacy donors reveal their intention to the organizations to whom they are offering support.

As a planned giving consultant I have discussed the importance of legacy giving with numerous organizations. I cannot overstate the incredible value these organizations place on this expression of true investment in the work they are doing. Many offer various forms of acknowledgement, both private and public. Legacy donors are recognized as the partners they are in the future of the organization.

When next you consider making a donation to a charity please also consider a legacy gift. It will not impact your current finances. You will be able to give a much larger gift posthumously than you can give today. You will create an untold ROI for yourself and countless others.

Jean Mensendick is the principal of Peitho Development Group. As a consultant to a variety of nonprofit organizations she has assisted with grant writing, board development, event planning, legacy giving, creation of new 501c3 organizations and volunteer management.

Ms. Mensendick has worked with historical organizations, organizations with foreign beneficiaries, medical services, communication and media, and animal protection groups. Peitho Development Group can also offer financial analysis and review to reveal ways that your organization can become more fiscally efficient and therefore more appealing to potential funders.

Please visit the website at http://www.PeithoDevelopment.com

Having tough competition among lending institutions and awareness on the part of the borrowers many financial advisors and websites have put up online calculators. These calculators are put up as forms to be filled with details of the borrowers and they get a rough estimate of loan amount that will be available and the monthly EMI amount they will have to pay in order to repay the home loan. With the form given online the borrower can make the first step of searching websites and understanding finances regarding home loans right from under their own roof in the privacy of their home. Here the individual does not need to publicise or share his idea about applying for a loan, and all information can be got by these loan calculators before taking the decision of applying for a loan.

Having this knowledge helps the borrower to understand his financial repayment capacity and the amount available as loan. The lending institutions have tried to put as much information as possible in these forms in simple manner. One can fill up details regarding monthly salary, age of the borrower or applicant, monthly incoming money and other liabilities or expenses. By stating this financial repayment capacity is judged and how much you can comfortably repay as monthly installments or EMIs. In the final slot after filling all the details the borrower can get the figure of total amount available as home loan and also the loan tenure for repayment. There are also many options where one can select different loan tenure periods and also fill in different loan amounts by just adding the details in the given slots. Here you can get different options available for repayment schedules and also calculate different loan amounts and the monthly EMIs to be paid.

With these home loan calculators one gets the option to try different modules and consider all repayment options before finally taking the plunge and applying for a home loan. The interest rate is also filled and the borrower can calculate how this interest rate will affect the monthly EMI structure. Once you know different financial loan lending institutions and their interest rates you can fill up the details and get the figures immediately. This will prevent wastage of time, energy and other hassles which the borrower has to face by directly approaching financial loan lending institutions before applying for home loans. After getting this figure the borrower can judge regarding the amount available as loan within his financial repayment capacity and status.

Online home loan calculators are a boom for any applicant of home loans. Not only do they give you different options available for repayment of loans but they also save precious time and money spent by making rounds of different financial loan lending institutions for enquiries regarding availability of loans. Once the figure of loan amount available is got the purchaser of the new home can go about considering only those projects for which they can get a loan and avoid wasting time considering other homes out of their budget. This will help to narrow down your search for a home and also amount available for loan.

Always remember that these online home loan calculators are for reference purposes and only consider them for prior research. The total figures and loan amount given may not be applicable for all lending institutions and also there is no binding for any institution to offer loans on basis of these calculators and the borrower has no guarantee of getting a loan amount mentioned on these home loan calculators.

Rizwana A. Mundewadi is a freelance Healing Artist and writer. Using her experience in the last decade she has been writing articles related to art, art investment, feng shui, symbolism, prosperity and good luck and has also added to this list her practical experiences with banking, loans and investments. Simplified facts about home loans can be found at http://homeloans-simplifiedfacts.blogspot.com without the technical jargon associated with this topic.

Veterans could borrow up to 100 percent of the total funds in order to purchase or refinance a property. The guidelines of a VA loan are not applicable to most conventional loans these days despite how good one’s credit standing is. VA financing will let the seller shoulder all the costs of closing, which includes items such as taxes, homeowners insurance, taxes and interest due from the purchase date to the end of the month. Moreover, the credit score and income guidelines allow a higher debt-to-income ratio than conventional loans. Higher ratios allow veterans to qualify or the kind of home that they want to buy.

A VA real estate loan does not require you to have a cash reserve, which means that you can purchase or refinance a home whether or not you have money in the bank. Remember that most conventional loans require a borrower to have at least two to six times the mortgage payment in the bank to serve as reserve. This could be difficult since most bank account fluctuates each month because of the state of the economy.

The closing costs usually incurred in a VA loan is considerably lesser compared to other conventional loans due to the absence of ‘junk fees’, as based on the VA guidelines. With all the benefits of a VA loan, most people would think that it has a catch somewhere. However, a low interest rate and no down payment necessary are hard to compete in today’s market. As mentioned earlier, the main purpose of a VA loan is to help veterans make their dreams of owning a home come true. Veterans cold also mean those who are members of the Selected Reserve, active duty personnel and their spouses.

If you are planning to apply for this kind of loan, it is necessary to look for a home first then approach a lender of your choice and then apply for a loan. Present separation or discharge papers or a Certificate of Eligibility. The appraiser appraises the property that you wish to buy and will estimate the home value. Upon approval of your application, you will then be able to get your loan.

Enjoy several advantages in Sun Lakes Homes for Sale and adult communities in Retirement Homes in Sun Lakes.

With all this fear of bankruptcy being debated by financial experts on the TV makes debtors question whether they should pursue debt consolidation options over filing bankruptcy. This advice should be solely left to an expert like a bankruptcy attorney who can advise a debtor on the benefits and negative aspects of bankruptcy filing.

After speaking with a bankruptcy attorney a debtor will find out that the truth is, neither of the options is really perfect. Having to pay back a portion of your debt through debt consolidation can really cramp your lifestyle, as well as, filing bankruptcy will temporarily slow you down also. As many people can testify your focus should be directed toward your financial problems and not getting caught up in a possible scam trying to reduce your amount of debt.

A bankruptcy attorney will tell you that filing bankruptcy is not easy and is a long complicated process. A good attorney will also tell you that bankruptcy does not guarantee that all your debts will be discharged when filing. On the downside, there have been a number of attorneys that have decided to jump into the filing bankruptcy boom. People should beware of a lawyer claiming to be a bankruptcy attorney but has very little experience to back it up.

Debt management and debt consolidation companies have many of their own issues. Generally, the terms of the debt management program is dictated by the creditors. The creditors will press every nickel that they can out of a debtor. Becoming debt-free is usually not the focus with these debt consolidation companies. If you had to choose between the two debt management services, they don’t work very well and the person ends up filing bankruptcy anyways. So the bottom line is, debtor should cut to the chase and find a good bankruptcy attorney to help them get their lives out of financial turmoil.

Getting beat up by creditors every day is no fun and the only thing that makes sense is filing bankruptcy. The automatic stay of a bankruptcy filing will immediately stop all collection activity against the debtor. No more phone calls, e-mails and threatening letters. In a short period of time the individual will get the peace of mind that they haven’t had for a long time. Always do your diligence when searching for your way out of debt. Speak with a bankruptcy attorney to get the pros and cons of your personal situation and help you get on the road to becoming debt-free.

The author started FilingBankruptcyNow.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in bankruptcy filing under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

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A person’s credit rating is used mainly for three things: to buy a house, to buy a car, and to obtain personal loans. A credit score of over 750 is seen as excellent, while anything below 500 is considered poor.

How Does Bankruptcy Affect a Person’s Credit Score?

Filing for bankruptcy will remain on your credit report for 10 years, but may not affect your credit rating for nearly that long. However, the fact that a person is filing for bankruptcy means that he has a lot of debt and is already behind on meeting debt obligations. His credit rating already isn’t very good. Depending on your situation, Bankruptcy may actually raise your credit score,

Is There a Positive Side To This?

Bankruptcy certainly can hurt your credit rating, but, there is a flip side to this equation.

You can actually start rebuilding your credit after filing for bankruptcy because there is no longer any negative reporting such as late payments, charge-offs, unpaid accounts and the like. A bankruptcy discharge wipes out all your debt and gives you an improved debt to income ratio. The government designed bankruptcy as a way to start anew.

In Chapter 13 cases wherein you are given ample time to repay past debts, the best thing to do is to make you bankruptcy plan payments on time. In fact, your credit behavior after filing for bankruptcy will do more to help or harm your credit rating than the act of filing for bankruptcy.

Getting approved for a loan might be difficult, but there are certain lending institutions that will extend credit to borrowers post bankruptcy but don’t expect to get the best interest rates at first.

If you are down on your luck and filing for bankruptcy is your best option, take the time to sit down and discuss your situation with a bankruptcy attorney. If filing for bankruptcy is something you cannot avoid, then by all means do so. If your quality of life can be improved by the elimination or restructuring of debt, by all means do it.

Take advantage of the fresh start afforded to you by the move and start rebuilding your credit rating. It might prove to be difficult at the start but healthy money management habits will definitely keep you from going into debt again.

For more information on how bankruptcy affects your credit, contact a bankruptcy lawyer who has experience in bankruptcy law and helping clients protect their assets. The law office of Kevin J. Pratt is comprised of dedicated Georgia bankruptcy attorneys who put the client’s interests first.

Stefano Grossi
GeorgiaBankruptcy7and13.com
770-614-4811

In this article, we are going to explain to you what chapter 7 bankruptcy is in three easy points. First, we are going to talking about who can benefit filing a chapter 7 bankruptcy. Next, we are going to be talking about how a chapter 7 law works. Finally, we are going to finish up with- who can help you file a chapter 7 law. After reading this article, you will be able to know the first step that can help you get rid of your credits finally.

First, we are going to talking about who can benefit filing a chapter 7 bankruptcy.

Before anything else, you should be eligible to file for a bankruptcy. There are many rules for this depending on your case. Unfortunately, however, because of the plentiful bankruptcy laws changes in 2005, it is much harder to qualify for a debt relief. Generally speaking, if your income is less than the average income for a household of your size in your state, you qualify for a bankruptcy.

Next, we are going to be discussing about how a chapter 7 bankruptcy works.

To simplify things, the bankruptcy’s trustee liquidates most of your assets to pay your creditors in exchange for dismissing your debts. Only properties that are non-exempt are liquidated; exempt properties, or properties that are essential to you and your trade are spared.

Finally, we are going to wrap up with – whom to call to help you file a chapter 7 bankruptcy.

If you are planning to file for a chapter 7 bankruptcy in Chicago, you will need to find a chapter 7 bankruptcy attorney stationed in Chicago because aside from having proper representation, they know the ins-and-outs of the laws applicable in your state which makes the process smoother for you so you’ll never have to break a sweat.

Now you know about bankruptcy and how it can help you to settle your debts. First, we talked about who can benefit filing a chapter 7 law. Second, we discussed about how a chapter 7 bankruptcy works. Finally, you learned about whom to call when you need help filing a chapter 7. Now you will be able to leave all your financial troubles behind and live debt-free!

For more detail visit: http://www.startoverfresh.com

Michael E. Fleck is the owner of Startoverfresh, a Fleck Law Group which provides bankruptcy debt relief programs in Chicago. Stop your creditor phone calls with the help of Chapter 7 bankruptcy attorney.