Category: Credit Repair Solutions

 

The Curious Persistence of Plan B (Bankruptcy Lite)

    I’ve come across a phenomenon numerous times over the years, again recently, that reveals the purpose of and resistance to discharge as the ultimate solution/relief for bankruptcy.
 
The writers observe that, if a judgment debtor is found by the court enforcement division to have no available assets against which to collect a judgment, the enforcement action is terminated … but “the court will automatically check every six months whether the involved judgment debtors have a new property.” On the one hand, the termination of fruitless enforcement actions sounds something like bankruptcy relief. Assuming the process actually works like this, and assuming the court enforcement division is not overly aggressive in pursuing “new property,” this seems to me to take some of the pressure off of the Chinese system to adopt a proper bankruptcy discharge to alleviate the suffering of insolvent judgment debtors.
 
On the other hand, without a discharge, the “checking for new property” part ensures that debtors’ incentives to be productive will remain perpetually depressed, and official resources will be perpetually wasted in interminable pursuit of phantom new assets. These debtors’ productivity and entrepreneurialism is forever lost to Chinese society in an era in which global competition continues to heat up.

 

This temporary-respite-in-anticipation-of-new-wealth approach to insolvency is also the “plan B” approach in another country that lacks a bankruptcy discharge: Switzerland. Here again, we see the half-solution of giving creditors a “Konkursverlustschein“–a  certificate of debt remaining unpaid after bankruptcy proceedings–that becomes enforceable only if the debtor is shown to have obtained non-exempt “new wealth” in a (widely varying) amount deemed sufficient by various courts.
 
great article (in German) explains the many, many shortcomings of this system and advocates for the adoption of a Swiss discharge provision. But again, it occurs to me that the existence of this bankruptcy-lite of a temporary–and often quasi-permanent–prohibition on further enforcement until creditors demonstrate the debtor’s acquisition of “new wealth” neatly explains why Switzerland remains a no-discharge island in a sea of European countries, all but one of which have adopted discharge laws in the past few decades (and that last one, Bulgaria, is seriously considering this now, perhaps in light of the imminent adoption of an EC Directive on Second Chance forcing the issue).
 
It also reflects a very long history of this plan-B approach to individual financial distress, long predating the discharge eventually introduced in English and American law.
 
The Roman and medieval European cessio bonorum also are generally thought not to have offered debtors a discharge in exchange for relinquishing their property to creditors. Likewise, the classical Islamic law of bankruptcy (iflaas) recognized a respite for overextended debtors only “until ease,” not a discharge (without creditor consent), as creditors were allowed to continue their pursuit of repayment once the debtor acquired assets beyond the bare essentials.
 
The persistence and gradual extinction of the plan-B temporary respite reveal both the long history of compassionate attitudes toward overextended debtors and a backstop that seems to support modern reluctance to go the whole nine yards to a full discharge. It also allows us to contrast the types of societies who have and have not accepted the utility/necessity of discharge, as the former recognize that every debtor’s productivity is vital for local societies’ global economic competitiveness. When the focus shifts from the micro to macro, only then is plan B revealed to be an insufficient substitute for discharge.
 
  • Deleveraging Is Over

    Posted:2019-02-26 17:39:11 UTC-06:00
    An unsustainable run-up in consumer housing debt and other debt was a fundamental structural cause of the 2008 global financial cScreen Shot 2019-02-26 at 11.59.42 AMrisis.
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  • Following four years of painfully slow decline, total U.S. consumer debt has now risen back above its 2008 peak, with the growth led by student loan and auto loan debt. Mortgages outstanding are not quite at their 2008 levels, but student loan and auto loan growth more than makes up for the modest home loan deleveraging.
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  • Americans are back up to their eyeballs in debt, but now some of the debt burdens have shifted from baby boomers to millennials. While the cost of health care may be a key electoral issue for the over-50 crowd, under-40s will be listening for policymakers to offer solutions on student loans.

Background on us

My name is Gerald Aumaugher. I am retired, I worked for Experian, for 5 and half years, may partner worked for 6 years in customer service with Experian, working with customers that had problems with their credit.

Our goal is to help you correct your credit problems in the most efficient way

Gerald Aumaugher and Joann Szabo
tbird@yours4succcess.com

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Credit Building Strategies

On the off chance that you are endeavoring to fabricate your credit there are numerous methodologies we can take a gander at to enable you to begin. In the event that you have no credit, terrible credit or great credit, building credit is vital since paying little heed to your circumstance, you would prefer not to go down. Systems for Building Credit: If you don’t have any credit whatsoever, you should begin someplace.

One system for structure credit is to apply for a Visa or an individual advance and ask your relatives or companions to co-sign the application. When you have opened a record, ensure you meet every month to month commitment, since on the off chance that you miss any installments whatsoever your co-underwriter is capable. On the off chance that you don’t have a record of loan repayment, you should need to select Visas issued by service stations, or else open a record with a retail establishment. These cards are moderately simple to get hold of, and it causes you to fabricate credit.

After you built up some credit extension, make your installments dependably and after around a half year you will be qualified for more credit. It isn’t prescribed, however on the off chance that you have an individual advance and as yet paying following a half year, you should need to apply for a new line of credit to reimburse this advance and begin installment on the other advance. I suggest this since it can free the co-underwriter from obligation. Never take out more than you need while applying for an advance and dependably check the financing costs and forthright expenses to abstain from overpaying.

Terrible Credit Strategy If you have awful credit and need to reestablish or construct your credit, you should initially begin by sending for duplicates of your credit reports. The reports are free once every year and can be acquired by TransUnion, Equifax and Experian. After you have surveyed your reports ensure no exercises are recorded against you that isn’t your own. On the off chance that you see, any activities on your report quickly compose the three agencies and request an examination. When you have debated your report, the following stage is thumping down each record until your credit is clear. On the off chance that you are battling with cash, you should need to thump out the verified obligations first and afterward work through the debts without collateral.

It might require some investment however you will get results after your obligations are forked over the required funds. An extraordinary system for those of us in the red is to set aside some cash every month and apply it to our levy. In the event that you are burning through cash, for diversion surrender it for the time being and escape obligation.

Numerous things in life are for nothing out of pocket and regularly fun and energizing. Keep in mind when you make penances something remunerating dependably returns. Another supportive procedure is hauling out the entirety of your assets. On the off chance that you have aptitudes, you should need to open a private company and utilize those abilities without limitations. You will profit and fabricate your credit.

Murdering numerous winged animals with one stone is the adage that works best when you realize what it implies. It is likewise savvy to reduce costs when you owe are your credit is terrible. On the off chance that you are burning through cash you don’t have, it is just sending you in reverse. There are numerous methodologies for returning to some kind of sane normality. One incredible procedure is to abstain from missing vehicle installments.

Great Credit Scores Finally, in the event that you have a decent FICO rating you need to strategize to keep up this score or else raise the score. On the off chance that your credit is great, you need to proceed with the spending that is clearly working and work toward expanding your pay to ensure you meet all installments every month. The exact opposite thing you have to do is apply for extra credit extensions on the off chance that you as of now have credit built up. Result what you owe now and purchase what you need later.

One of the greatest oversights a large number of us make is underestimating our circumstance. In the event that we have a ton of cash and an extraordinary credit extension, we regularly continue spending gorges. This is preposterous and is a surrendered procedure that covers us in a sand trap.

Gerald@aumaugher.us

281-803-9086