primuswebadmin – Page 4 – Law Offices of Michael J. Primus

Can I get my contractor’s license back?

March 14, 2018 by primuswebadmin

Construction, like all business, has risks and rewards. Most licensed contractors do good work and complete jobs even if unexpected events mean the job is no longer profitable. When a job goes bad, really bad, the contractor’s license can be in jeopardy. The purpose of a contractor’s license is twofold: first, to establish a standard of competence and second, to create a system of accountability.

Two of the biggest problems contractors encounter are difficult customers and injury. Unfortunately, if you work with the public you soon learn some customers have unrealistic expectations. In fact, some are never satisfied. Construction requires the use of heavy equipment, power tools, lifting, cutting, and climbing. The truth be told, even the most skilled craftsman is at risk for injury. Needless to say, a serious injury can leave the contractor unable to complete a job on schedule.

A contractor’s license can be suspended for failure to pay a construction related judgment or settlement. That means if a contractor is sued by a customer the stakes are high. Unless the contractor wins the suit, he or she must be prepared to either pay the claim or agree to make payments to satisfy the claim. If a contractor is injured and unable to work construction, things get behind and customers get upset. At the same time, contractors are people with personal bills to pay. This is where bankruptcy can come in.

The bankruptcy laws are the laws society provides to allow the honest but unfortunate person to have most debts forgiven. This means a bankruptcy can forgive a non-governmental construction related judgment assuming the job was bid in good faith and the contractor intended to do the work when the money was paid. That’s not all, bankruptcy can forgive some types of governmental debts and can establish a payment plan for governmental debts that are not forgiven. Bankruptcy can forgive (or establish a payment plan) for most debts so you can reinstate your contractor’s license quick and get back to work. Bankruptcy can also help get your driver’s license back.

If you are a contractor with construction related claims, lawsuits or judgments you are unable to pay, bankruptcy may be your best option. At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation.

References

Thomas 355 B.R. 166 (NDCA 2006)

Bertuccio 414 B.R. 604 (NDCA 2006)

Rebuilding Credit After Bankruptcy

March 6, 2018 by primuswebadmin

Most people take good credit for granted, that is, until some life event changes things. Financial adversity is never welcomed, but it is, nonetheless, a part of life. The notion of rebuilding credit assumes your underlying financial problems have been resolved leaving bad credit but not unpaid debt. The remaining question: how does one rebuild good credit? In this post, I present several tips to help you.

The first tip is to become an authorized user on a family member’s credit card. Of course, this needs to be a credit card that is being used and paid in a timely manner. An authorized user is not contractually liable for charges on the account and is not required to qualify but will get some credit report benefit when timely payments are made. Naturally, this requires the cooperation of a family member. Note: the family member is not required to actually give you the physical card nor are you expected to use it.

The second tip is to get two or three low-limit credit cards in your name. You might think you will not qualify to get a credit card due to your credit but usually that’s not true. In fact, most people receive preapprovals shortly after resolving their debts, even if they filed bankruptcy. Once you get a card (or two or three) it’s critical that all payments be made on time. More than just making payments, the key here is to utilize about 20% of your available credit. For example, if the card has a $500 limit, you should charge about $100 per month and pay it off. The idea is not to max out the card, even a low limit card.

The third tip is to get a copy of your credit report and carefully look for errors. A Federal Trade Commission study concluded that 20% of credit reports contain errors, but other studies have found errors in up to 80% of credit reports. The law gives you the right to dispute inaccurate information in your credit report. The Federal Trade Commission has excellent resources to assist consumers in correcting inaccurate information on a credit report.

Conversely, you should not bother with payday loans. Typically, payday loans will not be reported on your credit report which means they are of no use in rebuilding your credit. Similarly, paying cash for purchases does nothing to demonstrate your ability to manage debt and repay loans in a timely manner. This may seem counter-intuitive but you really need to take and repay loans to rebuild your credit.

In conclusion, you can expect to have good to excellent credit in 12 to 24 months after bankruptcy if you apply these tips.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation.

Resources:

www.ftc.gov

www.experian.com

Is it immoral to file bankruptcy?

February 28, 2018 by primuswebadmin

You are in debt. Too much debt. Month after month things grind along but the debt remains. Maybe some of your debts have been sold to aggressive debt collectors. Along with the debt came other problems like depression, marital problems, or worse. Something needs to change. You’ve looked online and found debt relief services with big promises that just seem fishy. Maybe you found the scam alert from the Federal Trade Commission about these companies. At some point you consider bankruptcy, but you don’t want to file bankruptcy. It’s bad for your credit, and it feels like stealing. People often tell me, “I wasn’t raised this way.” My usual reply is, “your current financial situation is not your identity as a person.” At this point, we need to discuss the reason we, as a society, have bankruptcy. The purpose of bankruptcy is to give people a second chance. Second chances benefit individuals and society in many ways.

Innovation

Second chances fuel innovation. What would the world be like without Disneyland? You might be surprised to learn Walt Disney’s first company, Laugh-O-Grams, went bankrupt in 1922. Walt Disney’s financial struggles continued and he was nearly bankrupt in 1937 prior to the release of Snow White and the Seven Dwarfs. Of course, Walt Disney found immense success when he opened Disneyland in 1955 and the rest, as they say, is history. But Walt Disney is far from the only example. Milton Hershey filed bankruptcy for his business in 1882 and again in 1886 before forming the Hershey Chocolate Company. Henry Ford filed bankruptcy in 1903 before forming the Ford Motor Company. And the list goes on.

Marital Issues

As a married man, I can tell you that marriage is not easy. Financial problems put stress on a marriage. Maybe that stress is buried deep waiting to erupt, or maybe it’s at the heart of every argument. Most people do not want to get divorced but at some point they realize the fighting and anger has to stop. Divorce does not eliminate debts problems, it usually makes things worse because you are required to pay court fees, attorney fees, and take time off work to go to court. Bankruptcy has saved many marriages, and it might save yours.

Medical Issues

The cost of medical care has been increasing in the U.S. for the past 40 years. Studies have shown medical bills are a triggering event for bankruptcy. Medical care is expensive for those with good health insurance and crazy expensive for those without insurance. Medical issues can be intertwined with debt problems in several ways. A catastrophic illness can leave you unable to work causing a reduction in income. Medical bills alone can be the financial problem. Worse yet, a reduction in income can be coupled with unexpected medical bills. Finally, the stress of existing debt may cause depression or other health problems.

In conclusion, bankruptcy is not immoral if you are unable to pay your bills. In many cases a second chance is the best thing for you as well as society.

What will my credit report show after bankruptcy?

July 12, 2017 by primuswebadmin

The idea of bankruptcy scares people, primarily because of the credit ramifications. Often people wonder what will show on their credit report after bankruptcy. Some people assume bankruptcy will remove everything except the bankruptcy. Others are unsure what will show but assume it will be horrible.

Credit reports are intended to be an accurate chronology of financial events, before and after bankruptcy. Most people assume their credit reports will be accurate, but that is rarely the case. The credit reporting laws do not require lenders to report anything. It is true, lenders are not required to report your payment history. Most major banks like Bank of America, Wells Fargo, Chase and Citibank routinely report to the credit reporting agencies, but most payday lenders and small businesses do not. This means your credit report may omit substantial information.

After a bankruptcy is discharged, your debts are forgiven and there is nothing due or late to report. Often, accounts discharged in bankruptcy will be reported as “discharged,” but the law does not require it. Unfortunately, the pre-bankruptcy late payments, collections and other problems will remain on your credit report. They say time heals all wounds, and that is true for credit reports. Most marks, good or bad, are removed after 7 years.

Most people realize good credit is a history of on-time payments, and bad credit is a history of missed or late payments. Paying cash for purchases may be a wise financial decision, but it will not demonstrate your ability to repay loans. If, for example, you take new credit cards after bankruptcy you can begin to establish a history of paying debts on time. The way you use and pay revolving debt, like credit cards, accounts for 40% of your credit score making it the largest factor in a credit score. Payment history accounts for 35% of your credit score making it very important too.

Once a lender decides to report to the credit reporting agencies, the law requires all reporting to be truthful and accurate. The law gives consumers the right to dispute any mark that is not truthful and accurate. Disputing marks on a credit report must be done in writing, so there is no point in calling the credit reporting agencies. Written disputes can be submitted by mail or online.

In summary, a credit report should accurately reflect financial events before and after bankruptcy. After bankruptcy, you have the chance to begin anew.

Millennials and the rise of payday and student loan debt

May 17, 2017 by primuswebadmin

Millennials are the young, digitally-savvy, generation born between the mid-1980’s and the early 2000’s. With a world of information at their finger tips, Millennials are swamped with information. Nowadays, the internet is replete with information, much of it biased or misleading making it all the more difficult to make sound financial decisions. According to a recent report from Experian, which draws from the findings of several other studies, the use of payday loans are declining slightly for the population at large but spiking among Millennials. Payday loans are short term loans with ultra high interest rates, often in the triple digits. Many payday loans are taken online while others are available through small brick and mortar shops usually found in strip malls. Payday loans offer money in minutes which Millennials seem to find alluring.

Payday loans are not the only loans Millennials are taking. According to a report by the Federal Reserve Bank of New York, Millennials are also taking student loans at breakneck speed. The volume of student loan debt in the U.S. has nearly doubled in the past decade. At the same time, student loan delinquency rates are increasing. Interestingly, college graduates with a bachelor’s degree or more have higher homeownership rates than non-college graduates whether or not they have student loan debt. In fact, the homeownership rate for college graduates with a bachelor’s degree or more is very similar whether or not the person is carrying student loan debt.

The conclusion is that younger Americans are taking on ever increasing debt. Payday loans are toxic because of the ultra high interest rates. Student loans, on the other hand, generally have reasonable interest rates and do not impair the ability to purchase a home. Payday loans are discharged through bankruptcy but student loans generally survive bankruptcy.

References:

www.experian.com/blogs/ask-experian/audio-millennials-payday-loans

Diplomas to Doorsteps: Education, Student Debt, and Homeownership

Women are better with money than men

March 20, 2017 by primuswebadmin

Most of us have developed our own perceptions of how men and women differ in the area of finances. These views are heavily influenced by our own experiences and social media as well as traditional media. Unfortunately, too often, our views do not correlate to factual data on the subject. In 2016, www.marketwatch.com, compiled some surprising statistics on the subject.

Women on average:

have slightly higher credit scores than men,
have more open credit cards but lower (non-mortgage) debt, and
earn less than men in similar jobs.

Men on average:

pay off student loans faster,
save more for retirement, and
save more in “rainy day” or emergency reserves.

The conclusion that women are better with money is supported by the fact that men earn more, save more but nevertheless have lower credit scores than women.

References:

Can I get my contractor’s license back?

References

Rebuilding Credit After Bankruptcy

Is it immoral to file bankruptcy?

What will my credit report show after bankruptcy?

Millennials and the rise of payday and student loan debt

Women are better with money than men

Bankruptcy, Not The End But A New Beginning.
We are a debt relief agency.
We help people file for bankruptcy.
We provide Flexible Payment Options.

Get Started with a Free 30-Min Consultation

Office Locations

925-934-0500

925-706-9200

510-741-1800

References

Bankruptcy, Not The End But A New Beginning. We are a debt relief agency. We help people file for bankruptcy. We provide Flexible Payment Options.

Office Locations

Bankruptcy, Not The End But A New Beginning.
We are a debt relief agency.
We help people file for bankruptcy.
We provide Flexible Payment Options.