Rebuilding credit

Here are a few tips on how to get back in the good graces of the credit agencies. Remember that no matter what your financial situation, it’s important that all bills be paid in a timely fashion.

• If you did file bankruptcy, make sure that the reaffirmed pre-bankruptcy debts are paid in a timely fashion. Although a bankruptcy filing will stay on one’s credit report ten years (chapter 7) and (seven years for chapter 13), new credit history has greater weight than old history.
• Open a checking or savings account, as this will show creditors that you can handle money responsibly.
• Apply for a gasoline card, as this is relatively easy to obtain. Always make sure the charges are paid off monthly as to show a record of responsible bill paying and so that the monthly interest fees don’t add up.
• Apply for a secured credit card. This type of credit card is secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit, and keep a balance of between 100% and 200% of the total amount of credit desired.

It’s important that you know its ok to use that newly acquired credit card. Minimal use can prove to be beneficial for small purchases that can easily be paid off in full. Not only does this show responsibility, bills paid in full and one time will look real good on the credit report. And by all means make sure you live within your means!!!

Here are a list of the very important Consumer Protection Acts that you should be familiar with.

Bankruptcy Abuse Prevention and Consumer Protection act of 2005 (BAPCPA) the intent of this act is to increase fiscal responsibility for those individuals and businesses filing bankruptcy,and to ensure there is adequate substantiation behind the filings.

Credit Repair Organizations Act (CROA) was designed to protect consumers from unfair or deceptive advertising and business practices by credit repair organizations.

Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against applicants on the basis of sex, race, marital status, religion, nationality, age, or the receipt of public assistance.

Fair And Accurate credit Transactions Act(FACT Act) is an amendment to the fair Credit Reporting Act, enacted with the entent to help combat and reduce identity theft, to protect the privacy of consumers financial information, and to maintain existing credit reporting protections.

Fair Credit Billing Act: established procedures for resolving mistakes on credit card transactions and on the transfer of electronic funds.

Fair Credit Reporting Act:(FCRA) ensures the accuracy,fairness,and privacy of information kept by credit bureaus and consumer agencies.

Fair Debt Collection Practices Act: applies to personal,family, and household debts.

Servicemembers Civil Relief Act Of 2003: serves as a complete revision to, and a renaming of, the old Soldiers’ and Sailors’ Relief Act of 1940. This act is provided for by federal law and it gives all military members important rights as they enter active duty.

Telephone Consumer Protection Act Of 1991: is the primary law in the United States governing telephone solicitations(i.e:Telemarketing). The Federal Communication Commission (FCC) revised the TCPA in 2003 to coordinate with the do not call registry, which is administered by the Federal Trade Commission (FTC).

Truth In Lending Act: was designed to assist consumers as they comparison shop for credit.

Uniform Debt-Management Services Act:(UDMSA) was introduced by the National Conference of Commissioners on uniform state laws(NCCUSL) to deal with the issues that have cropped up in the credit counseling industry.

Produced in cooperation with the Department of Justice’s U.S. Trustee Program

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.

The Department of Justice’s U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on the U.S. Trustee Program’s lists can advertise that they are, indeed, approved to provide the required counseling and debtor education. By law, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, court officials called Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers.

Counseling and Education Requirements
As a rule, pre-bankruptcy credit counseling and pre-discharge debtor education may not be provided at the same time. Credit counseling must take place before you file for bankruptcy; debtor education must take place after you file.
In general, you must file a certificate of credit counseling completion when you file for bankruptcy, and evidence of completion of debtor education after you file for bankruptcy – but before your debts are discharged. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificates are produced through a central automated system and are numbered.

Pre-bankruptcy Counseling
A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session should last about 60 to 90 minutes, and can take place in person, on the phone, or online. The counseling organization is required to provide the counseling free of charge for those consumers who cannot afford to pay. If you cannot afford to pay a fee for credit counseling, you should request a fee waiver from the counseling organization before the session begins. Otherwise, you may be charged a fee for the counseling, which will generally be about $50, depending on where you live, the types of services you receive, and other factors. The counseling organization is required to discuss any fees with you before starting the counseling session.

Once you have completed the required counseling, you must get a certificate as proof. Check the U.S. Trustee’s website to be sure that you receive the certificate from a counseling organization that is approved in the judicial district where you are filing bankruptcy. Credit counseling organizations may not charge an extra fee for the certificate.

Post-Filing Debtor Education
A debtor education course by an approved provider should include information on developing a budget, managing money, using credit wisely, and other resources. Like pre-filing counseling, debtor education may be provided in person, on the phone, or online. The debtor education session might last longer than the pre-filing counseling – about two hours – and the typical fee is between $50 and $100. As with pre-filing counseling, if you are unable to pay the session fee, you should seek a fee waiver from the debtor education provider. Check the list of approved debtor education providers at www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm or at the bankruptcy clerk’s office in your district.

Once you have completed the required debtor education course, you should receive a certificate as proof. This certificate is separate from the certificate you received after completing your pre-filing credit counseling. Check the U.S. Trustee’s website to be sure that you receive the certificate from a debtor education provider that is approved in the judicial district where you filed bankruptcy. Unless they have disclosed a charge to you before the counseling session begins, debtor education providers may not charge an extra fee for the certificate.

Important Questions to Ask When Choosing a Credit Counselor
It’s wise to do some research when choosing a credit counseling organization. If you are in search of credit counseling to fulfill the bankruptcy law requirements, make sure you receive services only from approved providers for your judicial district.  Some key questions to ask are:

What services do you offer?

Will you help me develop a plan for avoiding problems in the future?

What are your fees?

What if I can’t afford to pay your fees?

What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive?

What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?

How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization?