How Long Does it Stay on My Credit?

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The Answer is  usually 7-10 years. A Break down by account types is below:

  • Collection Accounts – Are required to be removed 7 years from the date of default on the original account. The “date of default” is the date that the original account became 180 days or approximately 6 months past due. The date the original account was assigned to the collection agency is NOT the date when the 7 year clock starts ticking.  Problems arise in find the actual default sate since many creditors tend to flip accounts from one collection agency to another.
  • Foreclosures and Repossessions – Required to be removed after 7 years from the date of the original terminal delinquency. “Terminal Delinquency” means that the account has been unpaid for 180 days, which leads to the foreclosure or repossession.  This is not the same date that the foreclosure was filed. In some instances foreclosures have been filed at 45 days  delinquency, and in others they have been over 2 years  delinquent  before the foreclosure action was filed.
  • Charge Offs – Required to be removed 7 years from the date of original terminal delinquency.
  • Settlements – Required to be removed 7 years from the date of original terminal delinquency.
  • Late Payments – Required to be removed 7 years from the date the late payment occurred. The account does not have to be removed if it did not go into default, just the late payments associated with the account.  I do not see this being followed by the credit bureaus unless you point it out.
  • Judgments – Required to be removed 7 years from the date the judgment was filed, whether it has been satisfied or not.
  • Bankruptcies – Chapter 7 bankruptcies must be removed no later than 10 years from the date filed. Chapter 13 bankruptcies can remain on your credit reports for 7 years from the date of discharge, though this date may not exceed 10 years from the date filed.
  • Tax Liens – Paid and released tax liens are required to be removed from your credit reports 7 years from the date released. Withdrawn tax liens will be removed from your credit reports immediately. Unpaid tax liens are never required to be removed from your credit reports.
  • Federal Student Loans – The FCRA is silent on the issue of defaulted federal student loans.  Credit reporting limitations for these items are governed by the Higher Education Act. Once a defaulted student loan has been paid it is required to be removed from your credit reports after 7 years. However, unpaid federal student loans can remain upon your credit reports forever. The good news is that they may not be able to sue you or collect on them depending on the Statute of Limitations in Your State.  In  Florida they need to initiate suit on a written contract within 5 years of  the  default. F.S. §95.11(2)(b).

In some instances items that normally would be removed and not appear still may be on your report:

  1. Report is used for employment screening of a job expected to pay $75,000 or more.
  2. Report is for a life insurance policy with a value of $150,000, or more.
  3. Report is used as part of loan underwriting for an amount of $150,000, or more.

Filing Bankruptcy will result in the other negative items, other then Student Loans , Judgments( if a Motion is not filed) and Tax Liens being  zeroed out on your credit report with the notation included in bankruptcy or in some cases totally removed.  Bankruptcy will actually increase your credit score once your discharge is entered.   For a free consultation  please contact my office.

Related Articles

Unpaid Debt and the Statute of Limitations

Debt Collection Calls

Debt Collector’s Calling?

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

 

Medicaid Planning? Why You Need An Irrevocable Trust

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The Medicaid asset limit for a nursing home resident covered by Medicaid is no more than $2,000 in “countable” assets.  An irrevocable trust will help you meet the countable assets.   A trust is a legal entity under which one person — the “trustee” — holds legal title to the property for the benefit of others — the “beneficiaries.” The trustee must follow the rules provided in the trust instrument. Whether trust assets are counted against Medicaid’s resource limits depends on the terms of the trust and who created it.

Medicaid considers the principal of such trusts to be assets that are countable in determining Medicaid eligibility. Thus, revocable trusts are of no use in Medicaid planning.

Income-only trusts

An “irrevocable” trust is one that cannot be changed after it has been created. This type of trust is drafted so that the income is payable to the “grantor” for life, and the principal cannot be applied to benefit your or your spouse. At your death the principal is paid to your heirs. This way, the funds in the trust are protected and you can use the income for your living expenses. For Medicaid purposes, the principal in such trusts is not counted as a resource, provided the trustee cannot pay it to you or your spouse.  if you do move to a nursing home, the trust income will have to go to the nursing home.

With an irrevocable trust you cannot gain access to the trust funds even if you need them for some other purpose. Make sure to leave an ample cushion of ready funds outside the trust.

Another option for an income only trust is to place the property in a trust from which even payments of income to you or your spouse is set up for the benefit of your children. Then the beneficiaries at their discretion, use the income or asset for your benefit.    These trusts usually contain property that has increased in value, such as real estate the grantor retains a “special testamentary power of appointment” so that the beneficiaries receive the property with a step-up in basis at your death. This will also prevent the need to file a gift tax return upon the funding of the trust.

Funding an irrevocable trust within the five years prior to applying for Medicaid is subject to the look back period. which may result in a period of ineligibility. See Medicaid’s asset transfer rules, for the actual period of ineligibility based upon the amount transferred to the trust.

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

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How to Shelter Assets from Nursing Home Care Costs

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  1. Give monetary gifts to your loved ones before you get sick.
  2. Hire an attorney to draft a “life estate” for your real estate,…
  3. Place liquid assets into an annuity.
  4. Transfer a portion of your monthly income to your spouse.
  5. Shelter your money through an irrevocable…

For more information contact our office.

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

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Failure to Disclose Claim in Bankruptcy Petition

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Lewis v. Portfolio Recovery Associates, LLC 

The Debtor filed a Chapter 7 Bankruptcy in NJ.  The Debtor did not disclose his FDCPA action and received a discharge.

The debtor  then filed a lawsuit alleging the defendant sent him a letter in an attempt to collect a debt that contained a “mini-Miranda” warning in a box entitled “Account Details.” According to the debtor, by mislabeling his legal rights as “Account Details,” the defendant’s correspondence was misleading and designed to confuse the debtor as to the nature of the debt and his rights.

Portfolio Recovery Associates argued that the debtor lacked standing to sue because he failed to schedule the lawsuit as a personal asset. 

 Section 541(a)(1) of title 11 of the U.S. Code provides that a bankruptcy estate comprises “all legal or equitable interests of the debtor in property as of the commencement of the case.” In re Allen, 768 F.3d 274, 281 (3d Cir. 2014). The scope of Section 541(a)(1) is broad, and includes possible legal causes action. Id. It imposes upon a debtor an ongoing affirmative obligation to disclose all assets and liabilities to the bankruptcy court before discharge, including pending and contingent claims. A failure to list an asset as property of the bankruptcy estate does not prevent it from becoming property of the estate.

With regards to undisclosed claims see  Schafer v. Decision One Mortg. Corp., 2009 U.S. Dist. LEXIS 56639, *12 (E.D. Pa. July 1, 2009). In order for a debtor to obtain standing, the trustee must abandon the unscheduled claim, whether voluntarily or pursuant to a court order. 11 U.S.C. § 554(a)-(b).

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

Survival Skills You Learn When You’re in Debt

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Guest Blog- by Oak View Law Group, Author Ian Caldwell

Being in debt is not always bad. Are you astonished? You shouldn’t. Every experience teaches you some valuable things in life, and “being in debt” is not an exception. Though it is not advisable to invite “debt” in your life. However, experiencing debt problems teaches you some valuable aspects of ‘money’ and ‘money management’ which perhaps is difficult to learn. One thing is sure. Being in debt once will perhaps help you on how to ?avoid debt problems for the rest of your life.

A person, who has successfully got out debt, knows the following:

One cannot run away from the problems – One of my friends once told me that she used to avoid the problems and she was scared to face it. What happened was she increased her debt load. This taught her a lesson that instead of avoiding the debt problems, she needs to face it head on. So, if you’re in debt, address the issues and find a way to solve the problem. You may find credit card consolidation to be one effective way of overcoming your debt-related troubles. In addition to this, there are so many professionals out there that are experts at helping people in your situation. Whether your debt is small or you are in personal bankruptcy, have a look around for a company like Bankruptcy Alberta who can be there to help.

 

To plan a suitable budget –Budgeting is the most basic aspect of financial management and no one knows this better than a person who has experienced major debt problems. To be debt free, you have to plan a suitable budget, which can help you save a decent amount as per your situation. Planning a “suitable budget” might be a bit difficult for you initially, but with time, you’d be able to master the art. With initial hiccups, gradually, you’ll come to know what works for you the best.

To set savings goals –Can you be successful in life without a goal? Definitely ‘No’. Similarly, you need to have savings goals to achieve your financial goal – be it becoming debt free or building a solid financial future. The goal which you set should be achievable so that it motivates you to achieve it within the period you’ve thought. Set a definite amount. For example, you want to repay $1000 within 2 months or want to save $12,000 in a year, etc.

To make savings automatic –If you opt for automatic savings, then you won’t have to worry about saving a required amount every month. You will first save and then spend the remaining amount. Though it might become a bit difficult initially since you’ll have less amount to spend along with managing your required bill payments.

Not to hesitate to start small –Are you thinking that your salary is too less to start saving a decent amount every month? If you have experienced debt problems, you know that you need to save and meet your daily necessities irrespective of your paycheck amount. If you think wisely, you’ll find that saving a small amount is not so difficult. For example, you can start by saving at least $25-$50 every month. This way you can save at least $100 a month, which you can use to reduce your debt load or increase your savings. Just think – saving $100 a month is actually saving $1200 annually. By doing so, the habit of saving will be reinforced and you’ll be motivated to save more.

To look for an extra earning opportunity –An extra income every month is always a bliss. So, don’t worry about how much you’re earning from a part-time job. A person struggling to overcome debt problems can use this amount to get out of debt. A person in debt knows the significance of an extra earning opportunity. To earn extra, you can look for summer jobs or event-oriented jobs. Some retailers employ extra people during Labor Day and Thanksgiving Day sales since they have to cater to a comparatively large number of customers. You can look for these jobs to earn some extra dollars.

Live with debt for some time –A person who has solved his/her debt problems knows that he/she will have to accept the situation of being in debt and have to live life with it for some time. This doesn’t mean that he/she has to focus only on paying off debt. Definitely, getting out of debt will be one major aspect but he/she has to pay attention to other day-to-day things, too.

So, if you’re struggling to overcome your debt problems or want to avoid falling in debt, practice these strategies and you can be assured that you’re on the right track of managing your finances effectively. You can also look at contacting businesses such as CreditAssociates to help you manage your debt in the best way possible for you.

Related Articles

Unpaid Debt and the Statute of Limitations

Debt Collection Calls

Debt Collector’s Calling?

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

Why You Need a Durable Power of Attorney

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Client’s often ask why can’t I just put my child on my bank account with me.  One of the things that I’m looking at is, how do they own their assets, who actually owns their asset who is on their bank account, who is on the title to their real estate. Often I discover that a client will have an adult child on their bank account with them.

Why is your child on that bank account with you? Is it  for convenience purposes?   Is it if you’re in the hospital, or traveling, or need your child to pay bills, they can do so because they’re on the account?

There’s a lot of downsides unfortunately, to having your child on your bank account with you.  The first one is liability. If your child gets into a car accident, get sued files, bankruptcy, maybe even files for divorce then your bank account could be subject to that child’s creditors or property distribution.

The second reason it’s a bad idea to have your child on your bank accounts with you is because it could affect your child down the road if they are applying for government assistance such as Social Security disability benefits, because they have access to, even though it’s not their money, your assets making them ineligible for benefits.  The third reason it’s a bad idea to have your child as a co-owner of your bank accounts is you’re basically giving your child carte blanche to your money, they can go in do whatever they want to with your money.  It’s going to be very difficult to get any money back if your child or to steal money from you, or otherwise, mishandle the funds, because you trusted him, you put him on the account, you gifted the value of the account.  The fourth reason it’s a bad idea in a lot of situations to name your child as co-owner of your accounts is that when you die, the bank account continues to belong to that child.  If you have multiple children, and the intent is to divide the account among all of your children, the child on the account does not have any legal obligation to share it with their siblings, even if your will says to do so the ownership of the account trump’s your will, and the money belongs to your one child who was co-owner of the account.

My job is to play devil’s advocate. They’re not going to share the money with their siblings in most cases.   Assuming they did share and If it’s a large enough amount then that is considered a gift now from the child to their siblings, and they might have the burden of having to file a gift tax return with the IRS to disclose those gifts.  If they later file bankruptcy, the bankruptcy trustee could go back void the transfers and force your other children to pay the money they received into the bankruptcy estate.  How do you get around this?  Remove your child from your bank account.  Your child will have to agree to be removed from the bank account.  Put the account back into just your name, sign a power of attorney, you can name that same child, giving them authority to help you out with your banking affairs. Give a copy of that power of attorney to the bank.

That child can now continue to pay bills on your behalf out of your account and help you manage the account.  If you want to avoid probate of the account, when you die, sign what’s called a POD ( payable on death beneficiary form) with the bank for that account.  List whoever you want to inherit the account upon your death, that might be the one child it might be all of your children. Some financial institutions call it TOD form (transfer on death form). By signing that form, you’re naming beneficiaries for the account.  After your death, all the beneficiaries will need to do is present a death certificate and the account will be dispersed among all of your beneficiaries.   If you have questions about this or anything else related to your estate, and you’re a Florida resident, I would be more than happy to handle your planning and answer your questions.

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

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Savings For Special Needs Kids

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As a parent with a special needs child, I  was excited to learn about ABLE, and wanted to share the information with you.   For those unfamiliar with the program, ABLE United is a not-for-profit managed by the Florida Prepaid College Board, a state agency. FDIC Insured option is available.

ABLE United offers Florida’s version of an ABLE Account, which is a  tax-advantaged savings account for individuals with disabilities and their families created under the ABLE Act.

The purpose of an ABLE account is to allow individuals with disabilities to save for future qualified disability expenses without losing government assistance.  The funds in these accounts will not count against their SSI earnings limit. Previously, these individuals had to maintain assets totaling less than $2,000.00 annually in order to retain their benefits.

ABLE United allows qualified individuals with disabilities to save up to $15,000 a year ($100,000.00 total) in an ABLE account without jeopardizing their eligibility for federally-funded means-tested benefits, such as Social Security Income (SSI) and Medicaid. Funds in an ABLE account are disregarded when determining eligibility for Medicaid or SSI; however, housing and non-qualified expenses withdrawn but not spent in the same month do count as a resource.

Eligibility is limited to individuals with significant disabilities with an age of onset of disability before turning 26 years of age.  If you meet the age criteria and are receiving benefits already under SSI and/or SSDI, you are automatically eligible to establish an ABLE account. However, failure to receive SSI and/or SSDI is not an automatic disqualification.

If the individual with special needs is able to work, the “ABLEtoWork” designation on an account will increase his or her annual contribution limit by $12,140.00 to account for earnings. Income earned by the accounts will not be taxed, and contributions to the account can be made by any person. Investment earnings are not taxed as long as money spent from the account is used for “qualified disability expenses.” Contributions must be made using post-taxed dollars and are not tax deductible.

A  third party special needs trust can be used to fund an ABLE account – thereby preserving these benefits for a disabled child while adding creditor protection.  The beneficiary of the ABLE account is the account owner, but his or her authorized legal representative can provide assistance in opening/maintaining the account.

The funds in an account can be used for disability-related expenses that assist the beneficiary in increasing and/or maintaining his or her health, independence or quality of life.  Qualified disability expenses are not required to be medically necessary nor are they limited to expenses that exclusively benefit the disabled individual.

Qualified disability expenses include:

  • Health
  • Education
  • Housing
  • Transportation
  • Legal Fees
  • Financial Management
  • Employment Training and Support
  • Assistive Technology and Personal Support Services
  • Oversight and Monitoring
  • Funeral and burial
  • Other Expenses Approved by the Treasury Regulations

There is no cost to open or maintain an account; however, there is a $25.00 minimum required balance.  The enrollment process takes approximately 15 minutes and can be done online.

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

Transitioning? Change Your Gender Marker

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Florida residents, you can change your gender marker on your driver’s license or passport. Our office handles this service.

Resources:

https://transequality.org/documents/state/florida

https://transequality.org/know-your-rights/social-security

https://transgenderlawcenter.org lists state by state requirements

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

 

What Debts Does Chapter 13 Bankruptcy Wipe Out?

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  • Credit Card Debts
  • Hospital Bills
  • Most Lawsuit Judgments
  • Wage Garnishments
  • Payday Loans
  • Utility Bills
  • Foreclosure Deficiency Balances
  • Vehicle Repossession Deficiency Balances

In Chapter 13 Bankruptcy, the remaining balance of these debts, if any, is WIPED OUT after making monthly payments for 36-60 months.  Schedule your free bankruptcy consultation to learn more.

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate