Monday, May 20, 2013

Don't Leave Money in a Bank Account if You Have a Credit Card or Otherwise Owe Money to the Same Bank

Many people do not realize that if they are behind in payments on credit cards, lines of credit, overdraft protection, loans, or other credit lines, and they have their money in an account with the same bank, the bank usually can withdraw funds from your bank account to pay for a credit card or other debt you owe to the same bank.

The best practice is, if you are delinquent on credit cards or other debts to one bank, keep your savings and other money in accounts with a different bank.  Otherwise, you may wake up one morning seeing your bank account emptied.  You might as well kiss that money goodbye.  This may mean you have to change your payroll direct deposit to a different bank.  This small inconvenience could save you many headaches.

Friday, May 10, 2013

Do Not Make the Mistake of Liquidating Your Retirement Accounts to Pay Off Your Debts

So many of my clients have come to me, having cashed in IRA's and 401(k) retirement accounts, to try to avoid bankruptcy.  What frequently happens is that the retirement accounts are gone, a good amount of debt remains, and a bankruptcy case still has to be filed.

These clients could have kept all of their retirment money, eliminated their debts, and had a secure future retirement.  Try to avoid the mistake that so many people make, and regret.

Saturday, May 4, 2013


Many clients come into my office with monthly car loan payments they cannot afford any longer.  Most people's first thought is to give up the car, especially when they owe more on the loan than the car's is worth.

We routinely file cases for clients to help them with their auto loans.  We can reduce the monthly payments significantly, lower the interest rate on the loan, and, if the car's value has dropped below the amount they owe on the loan, we can reduce the loan balance down to the current value of the car.

This procedure has helped many clients keep cars they otherwise would have turned in.  Especially when somebody's income has gone down, they need help to make their car loans more affordable.