Debt Repair

There have been reports from several different people I have met that say you can remove judgements from thier credit report by using a method called the "Motion to Vacate" and here is how it was done.

First they hired an attorney who knew a lot about credit repair and laws pertaining to your credit.

Get your attorney to file the motion called "Service of Process", this must be for removing the entry from your file. Your attorney would then make the arguement that the process was done improperly. Many people have said this actually works.

This usually works in your favor especially if the lender has been paid for the bill that he wanted anyway and may not even bother to show up in court. If you come to court and the creditor does not come then you will win by default. Then once you recieve the judgement the credit reporting agency will have no other choice but to remove the entry from your credit report.

Throughout your life, you have had some time that you did not have money to pay your bills and you have found that your clean credit is suddenly damaged, sometimes beyond repair (to you), now you have creditors and collection agencies calling you all day everyday, at work, at school, and on your cellular phone. You can't seem to get them to leave you alone and you have probably gotten to the point where you may even be considering bankrupcy.

There is a program which you may find useful, by using the Federal Bankruptcy Act you could get the Wage Earner Plan (Chapter XIII), this is where you may be granted relief from the constant nagging of creidtors should you file for this particular plan. In order for you to be eligible to take part in this program you will need to have your monthly bills be more than your total income that you earned from your salary or from your commissions.

In order to apply for the Wage Earner Plan you will need to call your area US district court or get yourself a lawyer. Then ask them if you can talk to someone who is in charge of this particular plan. You then file for the Plan and usually about 3 days after filing, your creditors will recieve a restraining order which will stop them from harassing or even contacting you any more. This will stop any actions that your creditors may have taken against you and it will stop all interest or late charges.

By signing up for this plan you will be able to pay off your debts and until you do it will give you some relief from the troublesome calls you get from your creditors.

One of the most important things for you to remember is that the bank stays in business by offering people loans that have interest rates. Some Banks and lenders may give your credit in one area will give you credit if they think that you are a good credit risk. Therefore building your credit is the surest way to ensure that you are able to get the bank to give you their money. Here are a few tips that will help you to get the loan you want.

1. Get your credit report from all the credit agencies to see if any of them have entries that could be bad for you.

2. Call banks in other areas to find out which of the agencies that they use, if it is a credit reporting agency that has no damaging entries you may be able to apply and get money from that bank.

3. Apply quickly before that information comes up on that credit reporting agency and you may be able to get the loan you need.

4. Pay off the negative entry that is on the other credit reporting agencies with the money you got from the bank and keep your nose clean.

More banks will offer you money when you fix your credit.

One of the worse things a person has to deal with is being in debt that they can't even begin to fix, they literally have a mountain of debt and they dont have the income to fix these problems, therefore they are now forced to live simply and in most cases they dont have any property that a creditor can put a lien on. In this instance, they may choose to do absolutely nothing about it. The question many of these people have is, should they simply do nothing.

The truth is if you do live simply and you really dont have any property, then you are one of those people that a judgement will not hurt. They can take you to court and sue your pants of but you cant afford to pay and you have absolutely nothing that they can attach in order to recoup their money, and going to court with you cost more than the debt itself, so many creditors simply write your debt off as being uncollectable.

The Law will not allow your creditor to come into your house and take your furniture, they also wont be able to keep you from getting public assistance or social security, so they will eventually back off knowing that you cant afford to pay and eventually this will fall off your credit report as it will be uncollectable under your state's law anyway.

However, it is only for those who dont plan on having a regular job or that does not plan to buy any properties in the next 7 years that this may be an option for. For those of us who would like to own property or have a job, it is better to fix your credit report and pay off your creditors as soon as you can.

Credit reporting agencies are not infallible, many make mistakes, some because your name or social security number is close to anothers or someone stole your identity but what ever the reason, you may find that your credit report has some mistakes that need to be fixed to ensure that you have the credit rating you deserve. In order to do this you will need to know what to do about this problem.

Here is a list of things you should look for on your credit report:

1. Look for things that are out of date, usually the credit reporting agency will remove items that are over 7 years old such as lawsuits, late payments to accounts, and other bad credit issues. Also check and make sure that bankrupsies have been removed that are older than 10 years old. Also get rid of credit inquiries that are over two years old.

2. Check to make sure tht your name is correct, that the phone number and address that they have for you is correct and that your employment information is correct as well.

3. Be sure if there is a bankrupcy listed on your credit report that it is identified by the chapter number you filed.

4. Be sure that there is no lawsuits or accounts which do not belong to you, or that any of the accounts you closed are not open. You also want to ensure that any payments that they say are late are not ones you actually paid on time.

5. Be sure that if an account is only listed one time on your credit report if it is yours.

6. If you did close an account be sure that it says it was closed by you.

Once you have checked out your credit report, you will need to have any problems reinvestigated, nowadays you can do that at the website of each of the credit reporting agencies. It can be done quickly by saying that you want to dispute the item and telling them briefly why you are disputing this item. If you havent heard from them after waiting 30 days then send them a letter to tell them that you have made the request and ask them to move the process along,

Keep in mind however that Credit bureaus do not automatically remove an item however in most cases they will remove it if it is more of a problem to investigate than to leave it on your report. If they do find that the bill or the payment information does belong to you, you may contact them to discuss it further. If that does not work, you can add a summary to your credit report that will be seen by anyone who asks to see your report.

This is a list of things that you should consider when you are designing your budget before you start trying to fix your credit.

Step 1: Create a Daily Expenses list, which should include everything that you spend for a month, no matter what it is, no matter how small you should keep a list for everything you spend, every day of the week.

Step 2: Debts

• Mortgage or Rent: This should include second mortgages or home equity loans you have to make monthly payments on.
• Utilities: This includes water, electricity, cable, telephone, internet, sewer, trash and any other utilities.
• Transportation: If you have a car this includes loans, insurance, maintenance, and gas. If you do not have a car you should include bus, train or planes that you take on a regular basis.
• Daycare: This includes any payments you make for child or elderly care on a regular basis for your children or any elderly persons in your care.
• Alimony or Child Support: If you pay these out you should list them here.
• Education: Whether you are paying for you or your child's education it should be listed, tuition, fees and books.
• Personal Loans: Loans made to you or to a consolidation company should be listed here.
• Legal Fees: If you pay a lawyer or accountant put them here.
• Medical Fees: any outstanding bills after insurance payments should be listed here.
• Insurance: Include homeowner, medical, dental, life, legal, and disability here.
• Credit cards: Any credit cards you have whether credit cards from the bank or from the gas station or from your favorite store should be placed here.
• Taxes: If you owe back taxes it should be listed here
• Miscellaneous: If you have other bills that do not fit in any of the above categories list them here.

Step 3: Income

• Gross Pay: From your employment whether through an employer or through income you earn through self employment. Dont forget to also list your taxes, social security, union dues and anything else that is withheld from your pay.
• Bonuses: If you make a regular bonus list it here, if you get one on performance only list it after you have recieved it, that way you dont count it as income until it actually is.
• Dividends and Interest: If your bank or stocks you own pay you in Interest payments or Dividends list it here.
• Rentals: If you own property that your rent or lease add them here.
• Trust: if you get payments from a trust fund you should list them here.
• Child support or alimony: If you recieve these payments add them here
• Pension and Retirement Funds
• Social Security
• Public Assistance
• Any other income.

By keeping track of these items you will be able to create a budget that works for you and eventually start working on your building credit goals as soon as possible.

Many people worry on a daily basis about credit, especially in today's economy, families are trying to build enough credit to buy homes, cars, necessities, do home repairs in an age where unemployment is running rampant. Therefore with a few quick fixes and tips you should be able to get a grip on your credit enough to make those purchases a reality even during the worst of economic times.

Step 1:

Budget, Budget, Budget, did I say that enough times, I think so. If you really want to fix your credit and are serious about credit repair, the very first thing you will need to do is to come up with a financial budget. Good personal finance comes from your ability to set a budget and stick to it. During about 2 or 3 months write down everything you spend money on. Then, if there are some things that you dont need or items that are not regularly part of your budget, or you are buying stuff you never use then eliminate them from your budget. I recently went to a friends house and she complained that she has no money, but while there I noticed that she has about 12 pairs of shoes, a purse and three or four outfits that still have the price tags on them. This is something she could have avoided, and used that extra money to pay off a small bill or clear out the balance on one of her credit cards to help clean up her credit.

Step 2

Once you have come up with a budget that you can live with, you will need to concentrate on cleaning up your credit report. This is a relatively easy task if you know what to do. Credit reporting agencies keep a record of credit cards, mortgages and loans that you have for the most part and your history of paying these. They sell this information to lenders, credit card companies, insurance agencies, credit unions, employers and in some cases even landlords, so that they in turn have a data base of credit worthy applicants that they can sell their products and services to.

Step 3:

If you find that your credit report has a lot of problems, there will be quite a few tips given at this site to help you out, however, if it is really bad then you may consider going to a credit specialist or employing the services of a lawyer who will be able to give you more indepth information about your credit situation.

These few steps should help you get your credit repair ball rolling and help you to work on getting your personal finances back on track. Check back soon for the next steps to credit repair.