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Things to Consider Before Filing Bankruptcy

Thu, 09 Jan 2025 19:10:31 GMT

Everything You Need To Know Before Filing
Bankruptcy

Filing for bankruptcy is a significant decision that can have long-lasting effects on your financial life. At the Law Office of Wendy J. Christopherson in Buffalo, NY, we understand the complexities and emotional weight of this decision. Here’s a comprehensive guide to help you navigate the process and make an informed choice.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

Chapter 7 Bankruptcy

Overview : Chapter 7 bankruptcy, also known as liquidation bankruptcy, is designed to help individuals eliminate most of their unsecured debts, such as credit card debt and medical bills.
Process : In a Chapter 7 bankruptcy, a trustee is appointed to liquidate non-exempt assets to pay off creditors. Once the process is complete, the remaining debts are discharged.
Eligibility : To qualify for Chapter 7, you must pass a means test, which evaluates your income and expenses to determine if you can afford to repay your debts.

Chapter 13 Bankruptcy

Overview : Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows individuals to keep their property and pay off debts over a period of three to five years.
Process : You will work with a bankruptcy attorney to create a repayment plan that is approved by the court. During this period, you make regular payments to a trustee, who distributes the funds to your creditors.
Eligibility : Chapter 13 is typically for individuals with a regular income who can afford to make monthly payments.

What to Know Before Filing Bankruptcy

Financial Assessment
Debt Analysis : Understand the types of debts you have, including secured and unsecured debts. Some debts, like student loans and child support, are generally not dischargeable.
Budget Review : Evaluate your income and expenses to determine if bankruptcy is the best option. Consider alternatives like debt consolidation or negotiation with creditors.
Credit Impact
Credit Score : Filing for bankruptcy can significantly lower your credit score and remain on your credit report for up to 10 years. However, it can also provide a fresh start and the opportunity to rebuild your credit over time.
Legal Assistance
Bankruptcy Attorney : Consulting with a bankruptcy attorney is crucial. They can help you understand the legal implications, prepare your paperwork, and represent you in court.
Costs : The bankruptcy cost can vary, including filing fees, attorney fees, and credit counseling fees. Ensure you have a clear understanding of these costs before proceeding.

What Happens After Filing Bankruptcy

Automatic Stay
Protection : Once you file for bankruptcy, an automatic stay goes into effect, halting most collection activities, including wage garnishments, foreclosures, and lawsuits.
Debt Discharge
Chapter 7 : Most unsecured debts are discharged, allowing you to start fresh.
Chapter 13 : After completing the repayment plan, remaining unsecured debts are discharged.
Rebuilding Credit
Steps to Take : After bankruptcy, focus on rebuilding your credit. This includes paying bills on time, keeping credit card balances low, and maintaining a stable employment history.

Ready to Take the Next Step?

Filing for bankruptcy is a significant decision, and having the right guidance is essential. At the Law Office of Wendy J. Christopherson, we are dedicated to helping you navigate the bankruptcy process and achieve financial stability. Call us at (716) 852-7373 or visit our office in Buffalo, NY, to schedule a consultation with a bankruptcy lawyer. We are here to support you every step of the way.

Does Medical Debt Affect Credit Scores?

Tue, 01 Oct 2024 15:49:03 GMT

The Effect of Medical Debt on Your Credit Score

If you’ve had an accident, if you’re dealing with an illness, or if you’ve needed multiple hospital visits, you know how expensive medical bills are. Even with health insurance, it doesn’t take long to build up a considerable amount of medical debt. If you’re wondering if your medical debt could affect your credit score, the short answer is “yes”, but there are a variety of factors to consider, which we will explain below.

The Amount of Time Since the Last Payment

Most healthcare providers don’t report to credit bureaus, but if enough time has passed since your last payment, there’s a good chance that they will sell your debt to a third-party collection agency. Depending on the medical provider, they might go to a collection agency as soon as 60 days since your payment has been past due, or as long as 120 days. Even if your debt goes to a collection agency, it still might not show up on a credit report. Experian, TransUnion, and Equifax, which are the three main consumer credit bureaus, give a 365-day period before the debt collection will appear on your credit report. This allows you time to resolve the medical debt. If the debt is not resolved though, unpaid medical collection accounts over $500 could affect your credit score and appear on your credit report for up to seven years. Fortunately, once the debt is fully paid, the collection account will be removed from credit reports, which should help to improve your credit score.

The Total Medical Debt Balance

Some good news for people who are dealing with medical bills and finding themselves in debt is that medical collection debt with an initial reported balance of under $500 will not appear on your credit report. As of April 2023, existing medical debt with an initial reported balance of under $500 was also removed from credit reports. So, if your medical expenses are under $500, you don’t have to worry about it negatively affecting your credit score.

Regular Minimum Payments

If you’re not able to pay your medical bills in full, make sure to contact your healthcare provider to work out a payment plan. That will enable you to make more manageable payments on a monthly basis until the debt is paid off. When you receive the monthly bill, you will have a “minimum” payment amount designated. Be sure to pay at least the minimum amount every month. If you’re able to afford more to get the debt paid down quicker, that’s great, but if you pay under the minimum amount for too long, there’s a good chance your account will be sent to a collection agency for not meeting the minimum requirements of your payment plan. As long as you stay on track with your monthly payments and pay at least the minimum amount, it won’t negatively affect your credit score.

Additional Notes to Keep in Mind

Unpaid expenses from medical bills are a unique type of consumer debt, and the credit bureaus understand this. This is why you’re allowed a grace period and why debt under a specific amount won’t appear on your credit report. Even still, you’ll want to ensure that you’re diligent about paying off the debt to avoid having it negatively affect your credit score. As mentioned above, if you’re not able to pay your bills in full, make sure to contact your medical provider as soon as possible to set up a payment plan. If you have health insurance, you’ll also want to keep up with your insurance provider to make sure that they’re paying their part and that everything is being paid on time.

If you’re currently struggling with your unpaid medical bills, or if you have any additional questions about medical debt hurting your credit score, contact the Law Office of Wendy J. Christophersen today. Our debt relief lawyers serve Buffalo, Cheektowaga, NY, and surrounding areas.

What is Debt Restructuring?

Sat, 13 Jul 2024 15:22:36 GMT

Credit Card Debt Relief in Buffalo, NY

Debt Restructuring Explained

Credit card debt, student loans, mortgages, personal loans, and auto loans can be crippling to pay off. Life changes fast, you may get injured, lose your job, or a plethora of other things that can affect your ability to pay off debt. You can’t forget about interest rates. Interest rates are often very high, especially for credit cards which can cause your debt to grow quickly too. All of this has caused the financial downfall for countless people across the country.

Thankfully, there are options for getting out of debt. One of these options is called debt restructuring. Debt restructuring is a process where you negotiate with creditors to change the terms of your loan agreements to make it easier to repay. Ways you can alter the terms of your loan terms include reducing the interest rate, extending repayment terms, and altering minimum payments to bring your account back to current status.

Contact Our Debt Relief Attorney Today!

The Law Office of Wendy J. Christophersen is a debt relief attorney serving the Buffalo, NY area. We will help you take control of your finances and get back into a healthy financial state. One way we help our clients do this is through debt restructuring. Our attorney will negotiate with credits, on your behalf, to get more favorable loan terms that will make it easier for you to pay back. Contact us today to learn more about our debt relief options!

The Snowball Method for Paying Off Debt

Fri, 19 Apr 2024 12:41:09 GMT

Crushing Debt with the Snowball Method: A Path to Financial Freedom

Debt can be debilitating, limiting our financial freedom, and taking a toll on us both mentally and financially. However, there is a proven method of paying off debt called the snowball method. In this blog post, we will explore what the snowball method is and how it can help you reach financial freedom.

Understanding the Snowball Method: The snowball method is a debt repayment strategy that focuses on paying off debts in a specific order, starting with the smallest balance first. Here's how it works:

Step 1: List all your debts, including credit cards, loans, and other outstanding balances, along with their respective balances and interest rates.

Step 2: Make minimum payments on all your debts except the one with the smallest balance.

Step 3: Use all the extra money that you have towards paying off the debt with the smallest balance. This can be done by reducing your expenses and/or finding additional sources of income.

Step 4: Once you have paid off the smallest balance, you shift your focus onto the new smallest balance. This creates a snowball effect and allows you to put more money towards each subsequent debt.

Psychological Momentum: Psychological momentum is a valuable source of motivation towards financial freedom. One thing that keeps people from becoming debt-free is frustration. They find it difficult to see any progress in their efforts to pay off debt. Paying off the smallest debt balance allows you to see actual progress on your debt and helps you feel that. This keeps you motivated to continue to put a conscious effort into paying off your debt.

Debt Elimination Strategy: The snowball method not only provides you with psychological motivation to keep focus on paying off debt, but it also makes a clear dent in your debt. By focusing on the smallest debts first, you can more quickly pay off your debts. As you pay off your debts, you begin to free up your money towards paying the remaining debts you have. This method allows you to gain momentum and make significant progress towards financial freedom.

Financial Flexibility: As you pay off your debts, you begin to experience more financial flexibility. With each debt that is paid off, you gain more disposable income that allows you to begin putting money towards other financial goals such as emergency funds, retirement savings, and investments. So, you not only enjoy financial freedom, but it helps set you up for a more secure financial freedom.

Staying Committed and Seeking Support: While the snowball method is effective, it requires commitment and discipline. It's important to stay focused on your goal and resist the temptation to accumulate new debts. Additionally, seeking support from friends, family, or online communities can provide encouragement and accountability throughout your debt repayment journey.

Learn More About Our
Credit Card Debt Relief Services Today!

The snowball method is a proven, effective way of paying off debts and making progress towards financial freedom. By following this method, you will get that psychological motivation by seeing the impact that this method makes, and you will achieve financial freedom quicker than you thought possible. However, taking on debt alone is not easy. There are legal tools that can be used to help you eliminate debilitating debt. At the Law Office of Wendy J. Christophersen, we provide credit card debt relief services to the Buffalo, NY area. We work with you to understand your situation, evaluate your legal options, and take the best course of action to help you reach financial freedom. Contact us today to learn more about how our debt relief lawyer can help you!

How Long Does Bankruptcy Stay on Your Credit Report?

Wed, 20 Mar 2024 16:53:58 GMT

The Duration of Bankruptcy
on Credit Reports

Bankruptcy is a significant financial decision that millions of Americans face every year. Financial hardships can cause us to be unable to meet our financial obligations such as credit card debt, student loans, medical bills, rent, and other living expenses. Bankruptcy is an option to help reduce or eliminate certain financial obligations. However, this can affect your credit report. In this blog post, we will explore how bankruptcy affects your credit report and how long it stays on your credit report.

How Does Bankruptcy Affect Your Credit Report?

Bankruptcy is a significant event that impacts your credit score and report. It is a negative event that causes your credit score to be significantly lower and your credit report will reflect that you filed for bankruptcy. This will make it challenging to apply for and get loans and credit cards.

How Long Does Bankruptcy

Stay on Your Credit Report?

The duration of how long bankruptcy is reflected on your credit report will depend on the type of bankruptcy you file for. Here are the general guidelines for each type of bankruptcy:

Chapter 7 Bankruptcy: This type of bankruptcy, also known as liquidation bankruptcy, typically stays on your credit report for ten years from the date of filing. During this period, lenders and creditors will see the bankruptcy notation when reviewing your credit history.

Chapter 13 Bankruptcy: Chapter 13 bankruptcy, also known as reorganization bankruptcy, involves creating a repayment plan to pay off debts over a specified period. It typically remains on your credit report for seven years from the date of filing.

Learn More from Our Bankruptcy Attorney Today!

Bankruptcy is not an easy decision to make. However, it is necessary for people who are experiencing financial hardship and are struggling to meet their financial obligations. Navigating the bankruptcy process can be challenging to go through too. Our bankruptcy attorney is here to help individuals throughout Buffalo, NY navigate that process. We will help you gather documents, file bankruptcy forms, and negotiate with creditors. This will help you achieve financial freedom from debilitating debt. Contact us today to get started filing for bankruptcy!

How Long Does Foreclosure Take?

Mon, 18 Sep 2023 15:46:06 GMT

Learn More About the Foreclosure Timeline With Our Local Lawyers

Foreclosure is not a situation that anyone wants to be in. Unfortunately, our financial circumstances change, and we become unable to pay our mortgage or taxes. It is a common occurrence that many homeowners experience. You can quickly become overwhelmed with the many thoughts that cross your mind when faced with foreclosure. One of the most common questions that homeowners have is: “How long does foreclosure take?” The answer is it depends.

In theory, it takes 6-8 months for a foreclosure to move from complaint to auction. However, this is hardly the case. It often takes much longer. If you file an answer and appear at the mandatory settlement conference, it will take 1 to 3 years to foreclose. So, you have time to learn all the facts and the options available to you. You should consult with your foreclosure lawyer upon notice of foreclosure. Do not panic and take the time to do your research and make the decision that is best for you.

Contact Our Experienced Foreclosure Attorney Today

The Law Office of Wendy J. Christophersen is a foreclosure attorney serving the Buffalo, NY area. When you hire our attorney, they will help you explore your options for keeping your home and avoiding foreclosure. You will retain ownership of your property throughout the entire foreclosure process. You are free to refinance, sell, or file bankruptcy. Hiring a lawyer is always a great idea because beyond providing you with your legal options, we can represent you in mediation or court, and file all necessary legal documents on your behalf. Contact us today to schedule your initial consultation!

Does Student Debt Get Forgiven When You File Bankruptcy?

Thu, 23 Mar 2023 04:21:00 GMT

Student Debt & Filing Bankruptcy

Many Americans have accrued student debt to achieve their educational goals. Student loans quickly add up to tens of thousands of dollars. After graduation, you must begin paying monthly payments towards your loans. This can be challenging for people as they have other bills and responsibilities. Financial hardship caused by all these financial obligations can become insurmountable. Bankruptcy is an option for those experiencing such hardship.

When considering bankruptcy, people often wonder about their student debt. A common question is “Does filing for bankruptcy get rid of my student debt?”. The answer is no. Filing for bankruptcy does not automatically qualify you for bankruptcy. According to the U.S. Department of Education, “ You may have your federal student loan discharged in bankruptcy only if you file a separate action, known as an "adversary proceeding," requesting the bankruptcy court find that repayment would impose undue hardship on you and your dependents.” Proving financial hardship to get your student debt discharged can be very challenging. Hiring an experienced bankruptcy lawyer can help you prove you will have undue financial hardship if you must pay back your student debt.

Contact Us Today for Help Filing Bankruptcy!

At the Law Office of Wendy J. Christophersen, we help clients in the Buffalo, NY area file for bankruptcy . A common concern for our clients is their student debt. They want to know if and how they can get their student loans discharged. It is possible, but it is difficult. Our bankruptcy attorney can help you prove that you meet the criteria to get your educational loans forgiven. We are not always successful, but we do our best to help all clients get all the relief they can. Contact us today to schedule your initial consultation to learn more!

Why You Should Hire a Foreclosure Lawyer

Wed, 21 Dec 2022 13:36:30 GMT

Trusted Foreclosure Lawyer in Cheektowaga, NY

The Benefits of Hiring a Foreclosure Attorney

Foreclosure is something that thousands of homeowners face every year. It is a scary situation that you would never choose to be in. Unfortunately, financial standings change because of a variety of reasons. If you have found yourself in foreclosure, you should hire a lawyer to represent you throughout the process. Here are the reasons why you should hire our attorney to assist you:

Defense is Not Easy: Our attorney will help you give a proper defense in your case. Proving that you are not fully liable for your foreclosure situation may seem simple and straightforward, but it likely is not. Our lawyer will help prove any unfair practices by your lender.

Knowledge of the Law: Foreclosure law is complicated and constantly evolving. Our lawyers have knowledge of federal and state laws regarding foreclosures, mortgages, and the rights of borrowers.

Court Procedures: Motions and legal jargon used in court proceedings can be confusing for those who are not experienced in them. It can make it difficult to properly respond or defend yourself. Our lawyer will help you get through these proceedings and handle all legal matters for you.

Contact Our Foreclosure Lawyer Today!

The Law Office of Wendy J. Christopher assists clients in the Buffalo, NY area navigate the foreclosure process. Foreclosure is a complex and scary situation for every homeowner that becomes involved in a foreclosure case. Our lawyers will help defend you with their extensive knowledge of the law and ensure all paperwork is filed and deadlines are met. Contact us today to schedule your foreclosure consultation!

What is the Difference Between Chapter 7 and 13 Bankruptcy?

Tue, 20 Sep 2022 19:57:44 GMT

Chapter 7 Vs Chapter 13 Bankruptcy

Bankruptcy is not a straightforward process. There are several options when it comes to debt relief. You can enter a repayment plan or file bankruptcy. There are two key types of bankruptcy: chapter 7 and chapter 13. Both clear unsecured debt such as credit card debt and medical payments. The right choice for your situation depends on many factors. Here are some of the key differences between chapter 7 and 13 bankruptcy:

Chapter 7

Chapter 7 bankruptcy dissolves your unsecured debt without any need for repayment. You must pass the chapter 7 means test. It will take up to several months to see your debt relieved. Individuals and business entities are both eligible for chapter 7.

Chapter 13

Chapter 13 is the reorganization of your debt. You will enter a court-mandated repayment plan. Upon completion of your repayment plan, your unsecured debt will be forgiven. Secured debt may be forgiven if the collateral is given up by the debtor. For example, giving up your vehicle to the holder of your auto loan may relieve your auto loan. Only individuals and sole proprietors are eligible for chapter 13 bankruptcy.

Contact Our Bankruptcy Attorney Today!

At the Law Office of Wendy J. Christophersen, we assist clients with filing for chapter 13 and chapter 7 b ankruptcy . The right type of bankruptcy for you depends on several factors including the amount of debt, the types of debt you have, and your ability to repay it. Our lawyers will help you decide which options you are eligible for, and which is best for you. Contact us today to schedule your initial consultation!

Why Should I Hire a Bankruptcy Attorney?

lemaster@digitalproductsuite.com — Mon, 12 Sep 2022 10:26:32 GMT

Benefits of Hiring a Bankruptcy Attorney

If you are considering a bankruptcy claim, it goes without saying that funds are tight. Hiring a bankruptcy attorney might seem like an unnecessary expense, especially because you have the right to file without using an attorney. However, there are a number of reasons why it might be a better idea to consult an experienced professional. If you’re on the fence about whether to work with a bankruptcy attorney on your case, we have compiled several ways that a bankruptcy attorney can help you as you make your decision.

Professional Planning and Guidance

The bankruptcy process can be complex. There are multiple types of bankruptcy; the type you file for will depend on your circumstances and qualifications. An attorney can help you through the process from beginning to end, from the preliminary planning stage to ensuring that all paperwork is filed correctly and on time. They will also be available to answer any questions you might have about the process, which can help you feel less isolated and contribute to peace of mind. Finally, a bankruptcy lawyer can help if there are any changes to your circumstances during your case.

Ensuring Your Testimony is Complete and Accurate

When you file for bankruptcy, you will need to submit accurate and up-to-date information for your case to be considered. You must sign all paperwork under penalty of perjury, so it’s important to submit truthful information. A bankruptcy lawyer will ensure that all of the information you provide is correct.

Negotiating With Creditors

During the bankruptcy process, you’ll need someone in your corner to deal with creditors. A bankruptcy lawyer can negotiate with creditors if there are any assets you want to keep (such as an automobile). They can also deal with any creditors who attempt to collect any payments during this time. Having someone with experience working on your behalf can make this process much easier and encourage all parties to negotiate in good faith. You are also more likely to see a successful outcome.

Post-Bankruptcy Assistance

After your case goes through the process, a bankruptcy attorney can help you make the most of your fresh start. This includes resolving post-bankruptcy violations if a creditor attempts to collect a debt that was wiped out; a lawyer can also provide guidance on how to rebuild your credit. There will be offers and opportunities available to you at this point; an experienced professional can help point you to the ones that will prove the most beneficial.

How Much Does Filing for Bankruptcy Cost?

lemaster@digitalproductsuite.com — Mon, 12 Sep 2022 10:24:18 GMT

Bankruptcy Filing Must Only be Considered as Your Last Resort

Bankruptcy is a way for those who are so far in debt they are unable to pay their bills to gain a fresh start. All bankruptcy cases are handled in federal courts. Once you officially file, your creditors are then legally prohibited from attempting to collect debts from you until the matter is sorted out in court.

There are some misconceptions about bankruptcy, so let’s dispel those now. In addition to helping you discharge debts, filing may help to prevent a tax or mortgage foreclosure on your home temporarily, a vehicle from being repossessed, or wage garnishment. However, it is not a magic, cure-all pill for your financial woes. For example, if you owe money on your mortgage or auto loan, you will most likely still be required to make the monthly payments in order to keep them. While the option of working out a payment plan with creditors is there, some debts are not eligible to be discharged under bankruptcy. These include child support, alimony, most student loans, court-ordered restitutions and fines, and some taxes. Debts incurred after the filing of bankruptcy are also usually not eligible for discharge.

There are two types of bankruptcy for individuals: Chapter 7 and Chapter 13 . The main difference between the two is you ask the court to discharge your debts under the former, while you file a repayment plan with the court under the latter.

As of December 2020, it costs $338 in court fees to file for Chapter 7 bankruptcy and $313 to file under Chapter 13. Therefore, it’s a big decision to file and one that should not be taken lightly.

Contact Our Local Bankruptcy Attorney to Schedule Assistance

Wendy J. Cristophersen is a bankruptcy attorney serving the Buffalo, NY area. If you are drowning in debt, she can advise you of your legal options, as well as help you determine whether filing for bankruptcy is the best solution for your situation. We are a small firm with a big heart, so you can be sure you’ll get the compassionate and effective legal representation you deserve. Get in touch today and let’s get you started back on the road to sound financial footing!

Ways To Lower Your Credit Card Debt

lemaster@digitalproductsuite.com — Mon, 12 Sep 2022 10:21:23 GMT

Tips To Help Lower Your Credit Card Debt

Do you have credit card debt that you wish you didn't have? You're not alone. In fact, the average American between 18 and 65 has more than $4,000 in credit card debt, carrying a balance on their card from month to month. If you have been overwhelmed with your credit card debt for quite some time, it may feel like there is never going to be a way out. However, there is light at the end of the tunnel and a way toward living a debt-free life. Getting started on this new lifestyle may be hard at first, but you'll soon reap the benefits.

Ideas on how to shrink credit card payments and live debt-free:

Larger Payments - Instead of making the minimum monthly payment, make larger payments as this will help you reduce the total balance and the amount of interest you are accruing.

Stop Spending - If you are having a difficult time managing your debt, it's important to stop spending. Determine what purchases are costing the most and look for ways to fix that. For example, if restaurants are racking up your cards, consider cooking more meals at home. To avoid using your card, try leaving it at home so you are less likely to use it.

Interest Rates - Did you know you can contact your creditor and ask them to adjust your APR? Some companies will comply if you have a long history with them and timely payments.

Balance Transfers - Transferring your credit card balances is another way to lower interest rates. Some credit card companies offer promotions and 0% APR for balance transfers. This will give you an interest-free period to pay but it is important to pay off the balance within that time-frame before the APR gets tacked on.

Make a Strategy - Some people like to pay off small debts before tackling bigger debts and others like to pay off bigger debts first. If you create a strategy for yourself, you are more likely to stick to it, lowering your monthly bills.

Payment Plan - You can call your creditor and ask to be put on a specific payment plan if you are having financial difficulty. This may help you avoid late fees and go into default which can affect your credit score.

Credit Score - Your credit card debt affects your credit score. If you have a good credit score, you may be offered lower rates which leads to lower payments.

Consolidate Debt - You can consolidate your debt by working with a company and make one lump payment each month to help you get out of debt.

Explore the Credit Card Debt Relief Process Today

At The Law Office of Wendy J. Christophersen, we offer debt relief and consolidation services to clients in the Buffalo, NY area. There are a variety of debt relief programs out there, but there are also scammers out there who want to take your money. Wendy strives to get her clients out of debt and takes the time to review the options available to you. Financial stress can be a burden to your life, work, relationships, and more. Let us help you with the credit card debt relief you are looking for. Contact us today for more information or to get started.