Lefkovitz & Lefkovitz
Nashville Office
615-686-2279
Cookeville Office
931-528-5297
We help individuals and businesses find the right solution to their money problems.

chapter 13 Archives

How interest rate hikes impact credit card debt

Tennessee residents may have heard about the Federal Reserve's decision to raise the federal funds rate to between 1 and 1.25 percent. This is the second time that rates have been raised this year, and a third hike could come later in 2017. For those with mortgages or home equity loans with variable rates, it may be a good idea to pay them off faster or refinance to a fixed-rate loan.

Strategies for getting credit card debts under control

Tennessee residents who are experiencing financial troubles have options for getting credit card debts under control. People with decent credit ratings could have the option of transferring debts to a new credit card that offers zero percent interest on balance transfers. This move might grant a holder six months to two years of interest-free time to pay down the balance.

Modifying a Chapter 13 payment plan

When Tennessee debtors seek relief from overwhelming financial obligations by filing Chapter 13 bankruptcies, they enter into payment plans lasting either three or five years. Bankruptcy courts approve these payment plans as long as they are realistic and equitable, but they may be modified or revised in certain situations. Some bankruptcy judges have ruled that borrowers must be able to establish that their financial situations have changed substantially before modifications can be granted, but other courts have taken a different approach.

3 dangers of credit card debt

Many Tennessee residents have high amounts of credit card debt. In fact, among U.S. households, the typical credit card debt is about $5,700, and the average age of those with the highest amount of credit card debt are those between the ages of 45 and 54, according to a report by ValuePenguin. While credit cards can be helpful to pay for unexpected needs, they can cause serious long-term problems for people.

Supreme Court rules stale debt claims allowed in Chapter 13

A Supreme Court ruling could directly effect Nashville citizens who are seeking debt relief. The 11th Circuit had ruled that a debt collector was in violation of the Fair Debt Collection Practices Act after it submitted a proof of claim on a time-barred debt to a bankruptcy court. The Supreme Court, however, said that this action did not violate the FDCPA clause prohibiting "false, deceptive, or misleading" practices.

How credit can be rebuilt after declaring bankruptcy

Tennessee consumers can take steps to improve their credit after a bankruptcy even though it will stay on the credit record for several years. The first step is to make a budget. This will help a person pay bills on time, and 35 percent of a FICO score is based on when payments are made. A budget should also allow a person to put money away into an emergency fund. About 10 percent of people who declare bankruptcy go on to do so a second time, and this emergency fund may provide the cushion needed to keep a person from sliding into debt again.

Trustee erred in amending payments according to ruling

Tennessee residents may have an understanding of a trustee's role in a Chapter 13 case. A ruling by a judge from the U.S. Bankruptcy Court for the Southern District of Texas further clarified what a trustee is not allowed to do when it comes to adjusting payments retroactively. In this case, a trustee retroactively adjusted 25 different plan payments in the McAllen, Brownsville, and Corpus Christie divisions.

Debt collector tactics evolving thanks to technology

Tennessee consumers who have fallen behind on their bills could find themselves being contacted by debt collectors in new ways. Two new methods include the use of avatars and voice mails that arrive on a person's phone without making a sound. Consumer groups are upset by the new tactics, but managers at debt collection companies say that the tools actually benefit consumers.

Discharged bankruptcies can improve credit ratings

Tennessee residents who are struggling to cope financially sometimes do not file for bankruptcy because they worry about the impact that doing so would have on their credit ratings. While personal bankruptcies remain on credit reports for seven or 10 years, the impact that Chapter 7 has on credit scores diminishes significantly after only two years.

Consumer debt picks up after sluggish January

Tennessee residents may be using their credit cards more than in the past. According to the Federal Reserve, Americans have accrued $3.79 trillion in consumer debt. That is an increase of $15.2 billion in February according to data from a report it issued on April 7. Credit card debt increased by 3.5 percent on an annual basis to $1.1 trillion after it dropped by 3.2 percent in January 2017. That was the first drop since April 2013.

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
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Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 615-686-2279
Fax: 931-526-6244
Cookeville Law Office Map