7 Signs You’re Living Beyond Your Means

1. You Constantly Carry a Credit Card Balance. There is no problem at all with using a credit card to pay for items. However, you should be paying off the balance each month. If you carry a balance month to month, you’re spending more than you can afford. You’ll need to make a double, triple, or quadruple payment to get yourself out of the red.

2. You Can’t Pay Your Bills on Time. You may have good intentions, but if you don’t have enough money in the bank to pay your bills on time, then you are living beyond your means. Elkhorn bankruptcy lawyer, Shannon Wynn, suggests reexamining your spending habits. You may need to forego some luxuries such as nail salon visits, morning coffee runs, or weekend pizza and drinks. It’s imperative that you cut back now and get your bills under control before your bills are out of control.

3. You’re Not Saving. You should be able to pay all your bills on time each month and still save at least 5% of your income, 10%-15% would be even better. If you aren’t saving at all, or you are constantly robbing your savings account to pay bills, then you need to budget.

4. You’ve Been Denied Credit. Even if you think you can handle the payments, your existing debt may be too high of a risk for a creditor to lend to you. Your current credit score may be below 700 points. You may pay bills on time, but have nothing left at the end of the month. You may pay bills, but not on time, and some end up in collections dinging your credit score. You may be piling up debt and not able to pay any of it off. Whatever the situation, many factors go into being denied credit. Being denied new credit is a major sign that you are living beyond your means.

5. Your Credit Cards Are Maxed Out. Having a credit card for emergencies is one thing. Maxing out every credit card you own is another. Elkhorn, Wisconsin bankruptcy attorney, Shannon Wynn, says possessing several credit cards with no available money left is a major concern. Missing just one payment can put you over the credit card limit due to the late charges and interest fees. Exceeding the credit card limit can really hurt your finances. How can you afford the monthly payment? To top it off, your credit report is taking a beating.

6. More Than 28% of Your Income Goes to Housing. Calculate what percentage of your monthly gross income goes toward your mortgage, property taxes, and home owners’ insurance or rent and renters’ insurance. If it’s more than 28% of your gross income, then you are more than likely in over your head. 28% is the magic number most lenders use as a guideline to ensure a person can properly pay for their home, plus live a comfortable lifestyle. If you are in over 28%, you should consider downsizing to a more comfortable price range.

7. You Don’t Budget. Elkhorn bankruptcy attorney, Shannon Wynn, states that having a budget in place is one of the most important pieces to obtaining financial freedom. Most people have never made an honest assessment of their spending. Not budgeting is a tell tale sign that you may be living beyond your means. Attorney Shannon Wynn recommends that you monitor your spending for a couple months and see where your money is really going. Then, you can set up a budget, knowing full well where you can cut back. Be sure to budget for savings, too, not just monthly bills.

Contact Elkhorn, Wisconsin Bankruptcy Attorney, Shannon Wynn

If you are guilty of even one item on the above list, you need to take a second look at your finances. If you feel now is the time to consider bankruptcy options, feel free to contact Attorney Shannon Wynn for a free bankruptcy consultation. You can reach Wynn at Law, LLC by phone at 262-725-0175. Wynn at Law, LLC has bankruptcy offices located in Lake Geneva, Delavan, Muskego, and Salem, Wisconsin.

Find out if you qualify for bankruptcy.

Click Here to Get a Free Bankruptcy Assessment
from Wynn at Law, LLC

.

It’s Free. It’s Easy.

*The content and material on this web page is for informational purposes only and does not constitute legal advice.

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What Is An Automatic Stay?

An automatic stay protects you from creditors. The bankruptcy law requires most creditors to stop all collection activities against you during the automatic stay because your monies, assets, and property are now part of the bankruptcy estate and some portions may be exempt under bankruptcy law. Creditors are not allowed to garnish your wages, attach liens to your property, repossess assets, foreclose on your property, call you, or send you collection letters during the automatic stay.

It is important to note that not all collection activities are subject to the automatic stay. There are certain collection actions that may still proceed during an automatic stay. These may include: criminal actions, child support, certain evictions, certain taxes, court proceedings for traffic violations, domestic violence issues, divorce proceedings, spousal support payments, and paternity law suits.

You also may be given a shortened automatic stay or no automatic stay at all if you have filed multiple bankruptcy petitions in a short period of time. If you filed for Chapter 7, 11, or 13 Bankruptcy during the past year, and the bankruptcy was dismissed, the automatic stay will end in 30 days. However, you can submit a good faith motion to the bankruptcy court to extend the automatic stay. If you had two pending bankruptcy cases in the past year, the automatic stay will not be issued at all. If this is your second bankruptcy within a year, talk to your Elkhorn Chapter 7 Bankruptcy attorney to learn more about filing a motion to extend or initiate your automatic stay.

It is possible for a creditor to ask the bankruptcy court to lift the automatic stay. Creditors who have liens on your property are the creditors most likely to ask the bankruptcy court to remove the automatic stay, although any creditor has the right to ask the bankruptcy court to remove it. The creditor must show good cause for requesting that the automatic stay be lifted.

How Do the Appropriate People Know to Stop Garnishing My Wages?

When you complete your Elkhorn Chapter 7 Bankruptcy petition, you will list all of your creditors, along with their addresses. Each creditor that you list will be notified by the bankruptcy court that you have filed for an Elkhorn Chapter 7 Bankruptcy and that an automatic stay is immediately in effect. The creditor must then make every effort to stop all collection activities, including your wage garnishments. Because the court will notify all creditors, you do not have to do anything, but you can always send a copy of your court stamped bankruptcy filing to the creditor garnishing your wages, the sheriff’s office, your payroll department, and any bank processing your wage garnishment.

What If My Wages Are Garnished After Filing An Elkhorn Chapter 7 Bankruptcy?

This should never happen, but if it does, notify your Elkhorn Chapter 7 Bankruptcy attorney immediately. The bankruptcy court may penalize creditors who violate the automatic stay and do not return the property or monies seized. You may be rewarded damages and attorney fees if a creditor violates an automatic stay and you win a court hearing against them.

If I File an Elkhorn Chapter 7 Bankruptcy, Can I Get Back Wages Garnished Before I Filed?

It may be possible to retrieve wages which were garnished prior to filing an Elkhorn Chapter 7 Bankruptcy. If certain criteria are met, you could be refunded wages garnished within 90 days prior to your bankruptcy filing. Speak with your Elkhorn Chapter 7 Bankruptcy attorney to find out if you meet all criteria and if this is a wise decision for you.

Once My Elkhorn Chapter 7 Bankruptcy Case is Finished, What Happens to My Wage Garnishment?

Once your Elkhorn Chapter 7 Bankruptcy case is heard before the bankruptcy trustee and completed, the automatic stay ends. If the debt that was being recovered by means of wage garnishment is wiped out during the bankruptcy proceeding, then the creditor cannot continue to garnish your wages. This will most likely be the case. However, if your bankruptcy case is dismissed or the debt being recovered by means of wage garnishment is not wiped out during the bankruptcy proceeding, then the creditor can continue to garnish your wages.

Speak with an Experienced Elkhorn Chapter 7 Bankruptcy Attorney

Wynn at Law, LLC has a 100% bankruptcy success rate. If you are struggling financially and need to stop wage garnishments, an Elkhorn Chapter 7 Bankruptcy may be right for you. Our knowledgeable Elkhorn bankruptcy attorney can discuss with you ways to stop wage garnishment with and without bankruptcy. Contact our Elkhorn bankruptcy attorney to discuss all of your options by calling 262-725-0175 or by visiting our website’s contact page.

Find out if you qualify for bankruptcy.

Click Here to Get a Free Bankruptcy Assessment
from Wynn at Law, LLC

.

It’s Free. It’s Easy.

*The content and material on this web page is for informational purposes only and does not constitute legal advice.

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Which Will Allow Me to Receive a New Loan Faster, Walworth County Bankruptcy or Credit Consolidation?

When you file a Chapter 7 Walworth County bankruptcy, you wipe out all unsecured debt. The bankruptcy filing notation remains on your credit report for ten years. This can possibly make it more difficult for you to receive a new line of credit with a financial institution. However, you will qualify for a home loan in two to three years. Credit consolidation means that you will consolidate all of your bills and then pay one monthly payment amount toward the total debt owed. This payment period can last anywhere between three to five years, depending on your amount of debt. Most financial institutions will not extend a new line of credit until your payment period has ended and you have establish some new, positive credit. This usually takes anywhere from four to six years.

Which Is a More Fail-Safe Plan, Filing a Walworth County Bankruptcy or Credit Consolidation?

It is imperative to note that most credit consolidation plans fail. According to the NFCC, 47% of enrollees drop out.

It is important to remember that when you file a Chapter 7 Walworth County bankruptcy, all unsecured debts will be eliminated if you receive a discharge. Unsecured debts include: credit cards, personal loans, payday loans, utility bills, and medical bills. As a condition of your Chapter 7 Walworth County bankruptcy filing, you are required to complete credit counseling which can be done online, telephonically or in person. Bankruptcy credit counseling will give you a head start on rebuilding your credit and is a proactive approach to not ending up in debt, again.

Advantages to Filing a Chapter 7 Walworth County Bankruptcy vs Credit Consolidation

Another positive note to filing a Chapter 7 Walworth County bankruptcy is the fact that you can start rebuilding your credit soon after you file. For instance, instead of paying cash for groceries, you would use a credit card and then put the cash you had saved for groceries toward the bill. Most credit card companies will give you a card after bankruptcy though many will hold high interest rates. However, if you pay off the balances used right away, you won’t see those high interest rates and you will be rebuilding your credit in the process. (This is just one example of a way to rebuild credit.)

One of the biggest advantages to filing a Chapter 7 Walworth County bankruptcy is that not only do you get to keep your home and vehicles (in most cases), but you also will qualify for a home mortgage only two to three years after filing. This is great news for families who haven’t purchased their first home yet and for families who need to relocate. This is a far shorter time frame than the four to six years after staring a credit consolidation program.

Contact our Chapter 7 Walworth County Bankruptcy Attorney

If you have an endless pile of debt and know you need help, schedule a free bankruptcy consultation with our Chapter 7 Walworth County bankruptcy attorney. We will be more than happy to answer all of your questions and ease all of your concerns regarding bankruptcy. You can contact our Chapter 7 Walworth County bankruptcy office by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has Chapter 7 bankruptcy offices located in Salem, Muskego, Delavan, and Lake Geneva, Wisconsin.

Find out if you qualify for bankruptcy.

Click Here to Get a Free Bankruptcy Assessment
from Wynn at Law, LLC

.

It’s Free. It’s Easy.

*The content and material on this web page is for informational purposes only and does not constitute legal advice.

The post Bankruptcy vs Credit Consolidation appeared first on Wynn at Law, LLC.

Fraudulent collections are making headlines once again. The Consumer Financial Protection Bureau has filed a lawsuit against more than a dozen debt collectors, payment processors, and related entities for failure to stop fraudulent collection tactics. The complaint accuses many debt collectors located in Georgia and New York of harassing consumers about “phantom” debts. Consumers were harassed, threatened, and deceived in order to collect on debt that was not even owed.

How Can A Walworth County Resident Recognize a Fake Debt Collector?

In today’s day and age, we are all always on alert for scam artists, online and offline. As consumers victimized in the aforementioned lawsuit paid millions of dollars on debts that were fake, the fraudulent debt collectors do a really good job of convincing people. How else could they fool so many people?

It can be very difficult for Walworth County residents to tell the difference between a legitimate debt collector and a fake debt collector. Fake debt collectors sometimes have your personal information, such as a bank account number, loan number, phone number, or address. They may lead you to believe that someone else has taken a loan out in your name. The fake debt collector may convince you that you owe more money due to fees and interest. Below are some tips to help Walworth County residents recognize a fraudulent debt collector:

1. The debt collector is seeking payment on a debt or loan that you do not recognize.

2. The debt collector refuses to provide you with a mailing address or phone number.

3. The debt collector asks you for personal or financial information. Remember, never provide anyone with your personal financial information unless you know they are a legitimate agency.

4. The debt collector tries to scare you into paying by threatening to have you arrested or reported to police. They may claim their employees are law enforcement officers.

5. The debt collector refuses to provide you with information about your debt. You can ask for detailed information about the debt in writing before you pay.

6. The debt collector does not accept various forms of payment.

What Should Walworth County Residents Do If They Recognize a Fraudulent Debt Collector?

If you believe that you are speaking with a fraudulent debt collector, do not provide them with any personal information. Below are a few strategies in regards to dealing with fraudulent debt collectors.

1. Do not engage in any type of conversation with someone trying to collect on a debt that does not exist. Just hang up. Beginning a conversation about how you do not owe the debt only works in the scam artist’s favor.

2. As stated earlier in this post, ask for debt verification. If you feel the debt owed may be legitimate, insist the debt collector place the debt information in writing before you pay. You have the right to ask for written verification under the Fair Debt Collection Practices Act. A legitimate debt collector knows they must comply and will do so without argument.

3. Contact your creditor. It is imperative you let your creditor know a fraudulent debt collection attempt has happened so it can be investigated and the creditor can warn other debtors.

4. Be practical. Many times the fraudulent debt collector will tell you they are taking you to court if you fail to pay today. Firstly, you must be served with a notice of the lawsuit or summons to appear. If you haven’t received one, you are not going to court. Ask the debt collector for the case number and name of the court where the lawsuit is filed. Ask for a return phone number so you can call and verify the lawsuit with the courthouse, then call them back. If you are dealing with a fraudulent debt collector, they will not provide you with a return phone number or a court case number. If they make one up, you will know when you call the courthouse or try to call them back.

If the debt collector claims to be with a law enforcement agency, ask for their badge number, name of agency, and location of agency. (Tip: Your first red flag is knowing law enforcement officials are not debt collectors.) Tell the debt collector you will be calling the law enforcement agency to verify their identity before you speak with them and, if their story doesn’t check out, you will be calling the police on them.

5. Takes notes. Takes notes regarding the phone call so you can file a complaint later, if the debt collector turns out to be fraudulent. Note the phone number that called you. Send your complaint to the Federal Trade Commission, Wisconsin Attorney General, Better Business Bureau, Consumer Financial Protection Bureau, and Federal Communications Commission.

6. If the debt collector calls a second time, and you have already proven that they are a fraudulent debt collector, tell the fraudulent debt collector you are recording the conversation or have taken notes on the phone call. Let them know you have already submitted a report to the federal agencies.

How Can Walworth County Residents Protect Themselves From Phantom Debt Collectors?

1. Never provide your personal information to anyone in person, on the phone, or online unless you made the initial contact and you know they are a legitimate agency. Doing so can lead to your identity being stolen.

2. Shred or burn everything. Never place papers with sensitive information in the garbage. This includes credit card statements, receipts, bank statements, medical bills, etc.

3. Look around before you enter your PIN at ATMs, department stores, grocery stores, and gas stations.

4. Never provide personal or financial information to anyone in response to an email.

5. Carefully monitor your credit card statements and bank statements.

6. Check your credit report annually.

7. Only provide your social security number when absolutely necessary.

8. Call creditors to verify amounts owed and to learn why a statement hasn’t arrived on time.

9. Immediately report lost or stolen credit cards or checks.

10. Only shop on websites that offer a secure payment page and clearly state their privacy policy.

Tips for Legitimate Walworth County Debt Collection

Debt collection scams don’t just hurt Walworth County consumers, they hurt the legitimate debt collection industry as well. If you work in debt collection, you must always act professionally. Here are a few tips for Walworth County debt collectors:

1. Never call a debtor at their place of employment if you know it is not allowed by the employer or the consumer.

2. Never call a debtor before 8:00 a.m. or after 9:00 p.m. or at inconvenient timeframes.

3. Always remain calm, courteous, and professional. With so many scams out there, it is almost as if a burden of proof falls on the debt collector to prove their identify as well as debt verification.

4. Know consumer rights and respond to written and legal requests in a timely and professional manner. Debt collectors must remember it is the right of the consumer to ask for written debt verification.

5. Do not threaten to take any course of action unless you intend to actually seek that particular course of action.

Contact Our Walworth County Debt Collection Lawyer

If you require legal representation to defend or collect a debt, contact our Walworth County debt collection lawyer. We represent Walworth County residents and Walworth County businesses in debt collection, debt defense, and debt repair. Wynn at Law, LLC has offices located in Salem, Lake Geneva, and Delavan, Wisconsin. You can reach our Walworth County debt collection lawyer at 262-725-0175 or via our website’s contact page.

*The content and material on this web page is for informational purposes only and does not constitute legal advice.

The post Debt Collection Lawyer Provides Tips to Spot a Fake Debt Collector appeared first on Wynn at Law, LLC.

The Wisconsin debt settlement company of Morgan Drexen, Inc. advised its customers to stop paying all creditors. Instead, Morgan Drexen took the money and placed it into an account which Morgan Drexen controlled. Once a client’s “account” accumulated enough funds necessary to buy down debt, Morgan Drexen would negotiate settlements with its clients’ creditors, pay said creditors, and then pay themselves a fee for their service. Morgan Drexen, Inc. operated under this practice for five years, during which time they received $8 million from their Wisconsin client. They paid themselves $4.2 million, over half of all fund received.

Morgan Drexen, Inc. was accused of operating without a license. They argued the case, but a hearing examiner ordered them to return the $4.2 million and pay an additional $1.89 million for breaking the law. The case went to the District II Court of Appeals. The Appeals Court ruled that the hearing examiner did not err in determining Morgan Drexen violated the law.

It actually sounds like pretty good plan, right? I slowly pay a company “x” amount of dollars until I have saved enough to settle all my debts. The company does this on my behalf and takes their fee. No fuss. Easy. That’s where the old saying comes into play. It sounded too good to be true. And, so it was. They were violating the law and operating without a license. In addition, clients were paying far more money than it took to settle the clients’ debts, as over half of the money Morgan Drexen took in went straight into their own pockets.

This is a good time to warn Elkhorn, Wisconsin residents who are seeking debt repair or debt settlement help to be cautious. Research a company before doing business. Ask peers and family members for recommendations. Check the Better Business Bureau ratings. Search for reviews online. Better yet, work with someone local who you know and trust. If you do your homework, you are less likely to fall victim to an Elkhorn debt settlement scam.

Contact Our Elkhorn Debt Repair Attorney

If you have questions about debt repair or debt settlement, contact the offices of Wynn at Law, LLC. Wynn at Law, LLC has offices in Lake Geneva, Salem, and Delavan, Wisconsin. You can reach our Elkhorn debt repair attorney by phone at 262-725-0175 or by email via our website’s contact page.

*The content and material on this web page is for informational purposes only and does not constitute legal advice.

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