Can You Go To Jail For Debt?

Until the mid-19th century, many people were imprisoned for delinquent debts.  Similar to today's workhouses, you could lose your freedom until the debt was paid off.   Debtors prisons were abolished long ago, but there are still are ways that you can go to jail for unpaid debt.

If you are held in contempt of court, you can go to jail.  It’s not as hard for this to happen as you might think.  If a creditor sues you and obtains a court determination that you owe money (called a "judgment""), and you can't or won't pay, then the creditor may send you a demand for disclosure of your income, your bank accounts, and property.  Or the creditor may subpoena you for a deposition to give sworn testimony regarding these matters.  The creditor wants this information so that it knows how to garnish your wages, levy your bank accounts, and seize your property.  If you don't respond with the information, then you may receive an "order to show cause" at a court hearing as to why you should not be held in contempt of court for failing to cooperate.  If you don't then show up at the hearing with the information, the judge may enter a bench warrant for your arrest.  The purpose of the arrest warrant is not to punish you, it is to force you to give the creditor and the court the information regarding your income and assets.  It wouldn't be uncommon to be arrested on a Friday and spend the weekend in jail until you are brought before a judge on Monday to testify as to your income and property. 

If you need to file bankruptcy, save yourself a lot of misery and do it before matters reach this point. When you file a bankruptcy petition, you are protected by the automatic bankruptcy stay against collection efforts and you don't need to worry about being held in contempt of court.

For more information regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at www.BankruptcyMinn.com for a consultation.  

720creditscore.com.

Poor credit is very costly, because it means high interest rates for car loans, credit cards, and mortgages.  There is no reason for you to live with poor credit.  Bankruptcy and www.720creditscore.com can help.

While it is possible to have a credit score of over 800, a credit score of at least 720 is considered great credit.  A score of 720 or above is all you need to get the best interest rates on car loans, boat loans, mortgages, and credit cards.  If you would like to learn everything you need to know to get a credit score of 720 or above, visit this web site:  www.720creditscore.com

Bankruptcy Attorney Gregory J. Wald of www.bankruptcyminn.com is happy to announce that we have entered into a business relationship that allows us to provide our clients with a subscription to www.720CreditScore.com FREE of charge.  720 Credit Score gives you the tools to rebuild your credit score after bankruptcy.  This program will give you the tools to get great credit.  Although 720 Credit Score charges $1,000.00 for its program, I am able to offer the program for FREE to my clients.  Contact me today for more information!

Medical Bankruptcy

A 2007 Harvard study found that nearly 70% of bankruptcy cases are related to medical issues.  With today's high deductibles, the situation hasn't improved.   Illness can mean time off of work and reduced income.  Bankruptcy eliminates medical debt, but only the medical bills that are owed as of the date of filing your bankruptcy petition.  If you are currently running up medical bills you have a couple of bankruptcy options: You can wait until your medical problems are over and then file a Chapter 7 case.  If you can't wait that long, you can file a Chapter 13 bankruptcy case and gain protection from your creditors until you are done incurring the medical debt.  At that point, you may be able to convert your case to Chapter 7 and include all of the medical debt owed at that point.

For more information regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at BankruptcyMinn.com for a consultation.  

Student Loans in Bankruptcy

In order to eliminate student loans in bankruptcy, it is necessary to sue the lender and prove that it would be an "undue hardship" to be required to repay the loan.  The courts have interpreted this requirement stringently, making it difficult for most borrowers to eliminate their student loans in bankruptcy.  

In March 2015, President Obama directed the US Department of Education and other federal agencies to develop clear standards as to when a person would be considered to have an undue hardship.  This would be beneficial, because people who met such standards could file their lawsuit and not have to worry that it would be opposed.  This would significantly decrease the cost of bringing a lawsuit to prove undue hardship and many deserving people could then eliminate their debts through bankruptcy.  Unfortunately, the US Department of Education forgot who they are working for and instead gave the green light to student loan lenders to aggressively fight student loan hardship discharges.  I urge everyone to let their Congressmen and Senators know how they feel about this.

HELP! I'VE BEEN SUED!

When credit cards, bank loans, medical bills and other debts become seriously delinquent, the creditors usually send them to a collection agency first.  If the collection agency can't collect the debt, then it may go to a collections lawyer who will sue to collect the debt.  You will know that you have been sued in Minnesota when you receive a Summons and Complaint in District Court or a Complaint in Conciliation Court.  

When you are served with a lawsuit, it is like a slap in the face!  Please don't panic.  There are things that you can do.  If you dispute the debt in a District Court case, you will probably need a lawyer to defend you.  If you dispute a Conciliation Court, you can go to the hearing yourself and explain your reason for disputing the debt to the judge.  If you don't dispute the debt and your debts are otherwise manageable, you could call the collections lawyer and try to make payment arrangements.  If you have other debts, it might make sense to file bankruptcy instead.  A bankruptcy will stop a lawsuit to collect a debt, even after the lawsuit has started.  If the creditor has already obtained a court judgment against you, bankruptcy can stop the creditor from ever trying to collect the judgment against you.

For more information regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at BankruptcyMinn.com for a consultation. 

 

What’s New About Getting a Mortgage After Bankruptcy

The waiting period for obtaining an FHA or VA mortgage is two years after you receive your Chapter 7 bankruptcy discharge.  It normally takes about three months to get your discharge after we file your bankruptcy petition with the court.  However, there is a new rule that allows you to obtain an FHA or VA mortgage as little as 12 months after you receive your discharge, if you can show that the bankruptcy was caused by extenuating circumstances beyond your control and if you have since exhibited a documented ability to manage your financial affairs in a responsible manner.  

For Chapter 13 bankruptcy, it is possible to obtain an FHA mortgage after you have made one year of timely payments under your bankruptcy payment plan.  You must also have permission to enter into the mortgage loan from the bankruptcy court.

For more information regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at BankruptcyMinn.com for a consultation. 

Keeping Track of Companies You Owe Money To

When you run into financial problems and bills begin to mount, it can sometimes be hard to keep track of what companies you owe money to. You might receive calls from multiple collection companies and they often do not identify who they are collecting for. In order to eliminate your debts in bankruptcy it is important to list all of your creditors.

What can you do? You can start by pulling credit reports.  There are three nationwide credit reporting bureaus and you can pull free credit reports from all three credit bureaus at www.annualcreditreport.com.  Credit reports will typically show credit card debts, bank loans, and other types of debts with financial institutions. The credit report may show collection agencies that have purchased delinquent debts or are collecting them on behalf of another company. Credit reports typically do not show medical debts unless they are with a collection agency.

If you come to see me, I can pull a three bureau merged report for you.  If you are not sure what medical debts you have, you may want to call the hospital or other medical provider and ask them for the amounts owed.  If you have medical insurance you could contact your insurance company. It may be able to give you a list of what amounts were covered by insurance and what amounts you still are responsible for.  When you have this information, you have the ammunition you need to eliminate your debts and get a fresh start.

WHAT WILL MY FRIENDS AND RELATIVES THINK OF ME?

You might be worried about what friends and relatives will think of you if you file for bankruptcy protection.  You can relax.  Your friends and relatives want what is best for you.  For example, one of my clients was borrowing heavily from his parents in order to keep up with his credit card debt.  His brother suggested to him that it would be better to file bankruptcy and eliminate his credit card debt, instead of borrowing money from his parents that he might never be able to repay.  He filed a bankruptcy case and eliminated all of his credit card debt.  He didn't lose anything that he owned.  He had a lot of fears about bankruptcy that all turned out to be false. 

Many of my clients are referred to me by concerned friends and relatives.  I have had parents bring me their sons and daughters. I have had sons and daughters bring their parents. Sometimes its hard to see a solution when debt problems mount.  The worry and stress can paralyze you.  A concerned friend or relative can sometimes take a more detached view and help you see that there can be a reasonable solution.   Many times, the solution is bankruptcy. Don't let fear stop you from solving your debt problems.

Discover the Difference Between “Debt Management Plans” and Filing Bankruptcy

Credit counseling companies were originally created by the banks to collect debts for them.  They offer "debt management plans" where by people can consolidate their debts and pay them off in full over a period of five years.  They try to negotiate lower interest rates for the credit cards so that they can be paid off over a reasonable period of time.

Even though they may be able to reduce the interest rates on some credit cards, the monthly payment under a debt management plan is usually larger than the combined minimum payments on all of a person's credit cards.  For this reason, debt management plans are not feasible for most people who are struggling financially.   They offer budgeting advice that can sometimes be useful.  However, the advice is frequently to get a second job (i.e., work yourself to death).   It is very difficult to get credit while you are in a debt management plan.  One couple who paid into a debt management plan came to see Minnesota bankruptcy attorney Greg Wald after they made payments under the plan for two years.  They wanted to buy a house, but the mortgage company told them they could not have a mortgage because they were still in a debt management plan.  The mortgage company told them it was too bad they didn't just file a bankruptcy instead.  The FHA will qualify people for mortgages two years after they complete a bankruptcy case.  They realized at that point that they made a big mistake and eliminated their debt immediately with a Chapter 7 bankruptcy.

Avoid a “BIG” mistake!  Contact Minnesota bankruptcy attorney Gregory Wald at (952) 921-5802 or visit them on the web at bankruptcyminn.com.  Discover the difference between “debt management plans” and filing bankruptcy before it’s too late.

Debt Management Plans VS Filing Bankruptcy

The banks have spent millions of dollars on lobbyists and were able to get Congress to pass a law that everyone who wants to file bankruptcy must first complete a briefing (counseling session) with a consumer credit counselor.  If the idea was to steer people into debt management plans, then the new law hasn't worked out well for the bankers.  Almost no one who completes the pre-bankruptcy briefing goes on to enter into a debt management plan. However, the counseling session is not all bad news. Many people do feel that they received useful information on budgeting and saving money from the counseling session.

Avoid a “BIG” mistake!  Contact Minnesota bankruptcy attorney Gregory Wald at (952) 921-5802 or visit them on the web at bankruptcyminn.com.  Discover the difference between “debt management plans” and filing bankruptcy while you are still able to make an informed decision between the two processes.

Can a Person Filing Bankruptcy Exclude Debts They Want to Pay?

I am often asked whether a person filing bankruptcy can exclude debts that they want to pay.  When you file a bankruptcy petition, you must give the court a complete list of your debts.  You are not allowed to leave anything off.  However, it is possible to repay debts that you have listed in your bankruptcy.  You might not be required to repay the debt, but you still can pay it voluntarily if you wish.  For instance, if you have a car loan or home mortgage, you can continue to pay these debts in order to keep your home or car.  If you have a debt to a relative, you can repay them what ever is left owing to them after you complete your bankruptcy case.   Occasionally, a creditor might request that you sign a "reaffirmation agreement".  A reaffirmation agreement is an agreement that you will not discharge (eliminate) a debt in your bankruptcy case and that you will be legally bound to pay it. Your attorney can help you decide if a reaffirmation agreement is a good idea.

HOW TO PAY FOR BANKRUPTCY

One of the most common questions about bankruptcy is:  How do I pay for my lawyer?

Chapter 7 bankruptcy allows a person to eliminate most types of debts completely, while allowing a person to keep all assets that are exempt from creditors.   The court filing fee and attorney’s fee for Chapter 7 bankruptcy must be paid in advance.  If a person wants Chapter 7 bankruptcy and is not in a big hurry to file, in many cases it makes sense for them to stop making payments on their debts and use the savings to make monthly payments toward the attorney’s fee.  I can accept monthly payments and file the case when all of the fees are paid.  Sometimes a family member gives my clients a gift or a loan of the funds.  Sometimes my clients have enough in savings to cover the fee or they are able to borrow the funds from their 401k plan.

Sometimes, the funds cannot be borrowed from a family member, the person’s wages may be subject to garnishment or their money in the bank has been seized by creditors.    Should they need to file bankruptcy right away, they might consider a Chapter 13 case.  Chapter 13 allows a person to consolidate their debt and pay a fraction of the debt in monthly payments over three to five years.  The debt is not normally required to be paid in full, but only whatever is affordable in the person’s budget. For Chapter 13, I need the court filing fee paid in advance, but most or all of the attorney’s fee can be consolidated with the other debts and does not have to be paid in advance.  Chapter 13 can be a good way to get immediate protection from the bankruptcy court, even if you don’t have the funds for attorney’s fees up front.

An Attorney Is Is Abreast Of The Ever-Changing Bankruptcy Laws

There are a number of potential pitfalls and tricks in the ever-changing bankruptcy laws, so it is very important to consult with a knowledgeable bankruptcy attorney. If your case is filed wrong, it may be dismissed for not filing a required document and if you have to file a new case you may not be able to get the same protection from your creditors.

Attorney Wald is well-versed in the possible complications that might arise in what seems to be a simple and straightforward bankruptcy case, he is aware of recent changes in the law and of court decisions in the local courts; and usually find ways of making a bankruptcy case more productive and effective than it would be if the debtor tried to handle it without an attorney--ultimately saving the debtor many hundreds or thousands of dollars .

Child Support Is Not Dischargeable

Child support is NOT dischargeable in any type of bankruptcy. The welfare of minor children is of primary importance throughout the state and federal court system.

But you still can get some benefit from declaring bankruptcy. Although you cannot erase child support payments, if you file for Chapter 7 protection and most of your other debts are erased, your budget will include new extra cash, which will make it easier for you to make your scheduled support payments on time.

Even choosing a Chapter 13 wage earner plan will lower your monthly payments to creditors, leaving you with more available cash to meet your support commitments.

How To Handle Enormous Debt Load Right After Receiving Your College Degree.

More than ever, young adults are being saddled with an enormous amount of debt right after they earn their college degree. They spend the rest of their twenties giving a sizable portion back to the University who just won a bowl game and is hardly hurting for cash. Meanwhile, you're a twenty something lawyer who passed the Bar exam, works for a prestigious firm, yet you eat Ramen and take the bus and duck your landlord at the end of the month. That's no way to enter the workforce--straddled with debt.


More young adults are filing for bankruptcy than ever. There is a stigma and almost a shame that comes with it, but there needn't be. Think of bankruptcy less a retreat and more a reset. Yes, it will reflect on your credit report and yes it will complicate your financial future at least for the next seven years. "So why would I want that?" You ask...
Here's the alternative. Continue on eking it out. Giving most of your pay to your wealthy college who's degree you might not even be using! Take the bus. Go broke trying to impress clients by paying for your meals only to find your wages have been garnished and your card doesn't work.
You can expect that for much longer than seven years if you don't file for bankruptcy. You don't want to have to play that game where you act like: "it's the banks fault" in front of potential clients. You know good and well there was a fifty-fifty chance your card would work, which is why you only ordered salad and water. You cringed when the potential clients ordered swordfish and champagne. And then came the coup de grâce? Potential client #1 liked the swordfish so much he wants a second to go. For his dog! Your mental cash register just exploded. You know what's coming. Epic embarrassment. You see it on the waiter as his or her demeanor has now changed. They have your card in their hand and a single, short, stubby receipt. We all know what that is. The rejection letter of debit machines. Just like when you got into college. Thin envelope meant: "Sorry! Try again!". Thick envelope meant :"Pack your bags".
Don't get another thin envelope or short receipt. Get your affairs in order. What you handle today will greatly behoove you tomorrow. We will get creditors off your back and allow you to entertain those potential clients without fear of embarrassment.

What’s the difference between Chapter 7, 11 and 13 of the Bankruptcy Code?

...A commonly asked question. Commonly asked because many are truly unaware of the differences between the two.


Chapter 7.



Chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets.




Chapter 13


Chapter 13 issues a payment plan to repay some debts, with the rest of the permitted debts being discharged. Keep in mind, not all tax debts are able to be discharged in bankruptcy, but taxes that are eligible to be discharged in a Chapter 7 are also eligible for discharge in Chapter 13. When you file for bankruptcy, your tax debts must meet a certain standard in order to be discharged.




If you file for Chapter 13 bankruptcy, money owed to the IRS that does not meet the qualifications to be discharged can be repaid through a payment plan that lasts anywhere between three and five years without penalties or continuing interest. (Although in some cases interest and penalties must be paid if there is a tax lien).




One of the benefits of filing a Chapter 13 bankruptcy is if the IRS rejected your previous payment plan, this is a way to get them to accept one.


Chapter 11


Debtors should be aware that there are several alternatives to chapter 7 and 13 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.




It is recommended that you speak with your attorney regarding this matter before deciding between filing Chapter 7 or Chapter 13 to get rid of or aid with the burden of tax debt.




Gregory J. Wald, Attorney at Law

1500 Northland Plaza

3800 American Boulevard West

Bloomington, MN 55431

Telephone: 952-921-5802

Toll Free: 1-866-747-1130

Fax: 952-831-1346

BankruptcyMinn.com

Gwald314@msn.com

Common Bankruptcy Myths

Everyone will know that I filed for bankruptcy...
While filing for bankruptcy is a matter of public record, people generally won't find this information unless they are looking for it.

All of my debts will be wiped out in Chapter 7 bankruptcy...
Sadly, not every debt is able to be discharged. Non-dischargeable debts include, but are not limited to: child support, some types of taxes, student loans (unless there is "undue hardship"), and debts incurred fraudulently.

I will lose everything that I have...
There are exemptions put into place to protect parts of your life. Exemptions are laws that specify amounts and types of property that you can keep from creditors. Some of the most common exemptions are for your car, clothing, your house, household goods, and money in qualified retirement plans. The majority of people who file bankruptcy don't lose anything.

I'll never have good credit again... 
You can begin to rebuild your credit simply by paying the bills on time. You can also apply for a secured credit card. The best way to build good credit is to use only 10 percent of your available credit. Keeping your debt to income ration low is best.

I will have to file bankruptcy with my spouse...
It's not always necessary for spouses to file bankruptcy together, but it could be in your best interest. If you and your spouse share many of the debts, it's better to file together. However, if only one spouse is responsible for most of the debt, it may be better for just that spouse to file. Your bankruptcy attorney will help you determine this.

I don't want to include all of my creditors in my bankruptcy...
When filing for bankruptcy, all creditors must be listed. However, you can pay any creditor you wish after you file bankruptcy, even though you may not be legally required to do so. For instance, you can continue to make payments on a car loan or a mortgage in order to keep the car or the house.

I can only file bankruptcy once...
While there are limitations, you may file more than once. Chapter 7 bankruptcy can be filed once every 8 years. Chapter 13 bankruptcy can be filed every 2 years. If you filed Chapter 7 bankruptcy the first time and would like to file for chapter 13 next, 4 years must pass between filings. If you filed Chapter 13 first and want to file Chapter 7 next, 6 years must pass between filings.

I can max out all of my credit cards before I file for bankruptcy...
This would be considered fraudulent and may jeopardize your dischargeability. It's best to stop using your credit cards if you think that you may need to file bankruptcy.

I have to have a certain amount of debt before I can file...
There is no minimum amount of debt a person must have to file for bankruptcy. If the debt is beyond your ability to repay, you can file for bankruptcy if it's the best choice for your financial situation.

You should always consult and work with an experienced attorney when filing for bankruptcy. If you have any questions surrounding these common myths regarding filing for bankruptcy, contact Minnesota bankruptcy attorney Gregory Wald at (952) 921-5802.

How Credit Card Use Can Affect Your Bankruptcy

If you plan on filing for bankruptcy, it is never a good idea to run up credit cards immediately beforehand. While it may be tempting, using your credit cards directly before filing for bankruptcy can lead to complications that include not being able to discharge that portion of your debt.

Generally, credit card debt is dischargeable through filing for bankruptcy. However, fraudulent debt is not. If you run up credit card debt with the intention of discharging it in bankruptcy, it is a fraud against your creditors and they may ask the court not to discharge the debt. You should be especially careful not to charge as much as $600.00 on a single card for luxury items within 90 days prior to filing bankruptcy. Also avoid cash advances on a single credit card of $875.00 or more within 70 day before filing bankruptcy, because in both situations, the court must presume that you incurred the debt fraudulently.

Additionally, some creditors will look at overall credit card usage in the 6 to 12 months prior to filing and object to a discharge if the charges are excessive and appear to be done in contemplation of bankruptcy. So the best practice is not to use any credit cards once you have met with an attorney and/or know you plan to file bankruptcy.

Once you have consulted with an attorney, be sure to inform your them of any purchases of $600 or more that you’ve made on your credit cards because in most instances it may be in your better interest to delay filing until after the 90 day presumption period has passed.

If you purchase necessities like food and diapers on your credit cards within 90 days prior to filing bankruptcy, your credit card company probably will not complain. However, you should stop making charges of all types once you have made the decision to file bankruptcy.

In some cases, it makes sense to incur debt with the intention of filing bankruptcy. For instance, if you car needs to be replaced, it may make sense to finance a dependable replacement vehicle before you file bankruptcy. However, you should always obtain the advice of a bankruptcy attorney before taking any financial steps in contemplation of filing bankruptcy case.

If you are unsure about any purchases you’ve made within the 90 days before you are planning on filing for bankruptcy and are wondering if your credit card debt can be discharged, consult with bankruptcy attorney Gregory J. Wald for more information.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Tax Debt Relief And Bankruptcy

If you have an income tax debt, and are filing for bankruptcy, that may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code.

The difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy is that Chapter 7 allows for a full discharge of permitted debts while Chapter 13 issues a payment plan to repay some debts, with the rest of the permitted debts being discharged. Keep in mind, not all tax debts are able to be discharged in bankruptcy, but taxes that are eligible to be discharged in a Chapter 7 are also eligible for discharge in Chapter 13. When you file for bankruptcy, your tax debts must meet a certain standard in order to be discharged.

The criteria for income tax debt to be discharged are:

• All tax debt must be from income taxes 
• The tax debt must be part of a tax return that was due at least three years prior to the taxpayer filing for bankruptcy. The due date includes any extensions. 
• The tax return has to have been filed at least two before the taxpayer files for bankruptcy. This date starts when the return was actually filed. 
• The tax assessment that the IRS sent you has to be at least 240 days old. 
• The tax return cannot be fraudulent. 
• The taxpayer cannot be guilty of tax evasion. 

Some of the tax debt that is not dischargeable is for taxes for which no returns have been filed. While the IRS routinely assesses taxes on un-filed returns, these tax liabilities cannot be discharged until the taxpayer files a return for the year in question. The return must be filed by the taxpayer. A commissioner-filed return does not qualify.

If you file for Chapter 13 bankruptcy, money owed to the IRS that does not meet the qualifications to be discharged can be repaid through a payment plan that lasts anywhere between three and five years without penalties or continuing interest. (Although in some cases interest and penalties must be paid if there is a tax lien). One of the benefits of filing a Chapter 13 bankruptcy is if the IRS rejected your previous payment plan, this is a way to get them to accept one.

It is recommended that you speak with your attorney regarding this matter before deciding between filing Chapter 7 or Chapter 13 to get rid of or aid with the burden of tax debt.

Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Repairing Your Credit After Bankruptcy

Having good credit after bankruptcy is possible, you could even obtain a good credit score within several years of your bankruptcy case being discharged. The first step is receiving the notification from the courts that all of your debt has been discharged. This form will be titled “Discharge of Debtor.” Keep this form in a safe place because you may need to show this to creditors as proof your debts are gone.

• Review your credit reports and score closely and clear up any errors. Request your credit report from each of the three major credit agencies. Make sure that all of your debts are listed as “discharged.” Some creditors will not play by the rules. If you notice that some of your debts are not listed as discharged, contact your Bankruptcy Attorney Gregory J. Wald. 
• The easiest way to reestablish credit is with a secured credit card. A secured card is a card that is backed by a deposit of cash as collateral. The deposit amount is the amount of credit you will be allotted. Be sure to ask whether the card reports to all three major credit bureaus. If not, find another bank that does so. Typically in 12 to 24 months you will be able to open a more traditional credit card.
• It is good practice to keep your credit card balances below 30% of your credit limit, even if they are paid off in full each month. The lower the balance and the higher the limit, the faster your credit score improves.
• Pay your utility bills and rent on time. This will go a long way in assisting to rebuild your credit. Delinquencies have the largest negative effect on your credit score.
• Get a gas store card. These types of cards can be easier to get than a regular credit card and if you are trying to establish credit history, these small monthly payments can be a great help in boosting your credit score.

By following a few of these steps and by making your monthly payments on time, you will be back on the road to having good credit.


Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com