Question 1

Should I Go Bankrupt?

Accepted Answer

If you qualify for a fresh start bankruptcy, our advice is to bankrupt assuming your debts are significant. Because one can only go bankrupt once every ten years, we don’t recommend going bankrupt (absent extraordinary circumstances) with less than $35,000 in debt because BK costs 2-3,000 and workout costs $21,000. The right to bankrupt down the road is worth more than $18,000.

Question 2

How many points will defaulting on my cards bring down my credit?

Accepted Answer

In general, you should anticipate that your credit score will drop 100-150 points post-default. By law, a credit card company is required to “charge off” (remove your debt as an asset on their balance sheet) after six missed payments. Once it is charged off, the credit card company can no longer report you as late. Non-payment negatively impacts your credit score for 12 months after the last negative. Accordingly, 18 months after the first missed payment, the missed payments will no longer negatively impact your score. That doesn’t mean your score goes up. For it to go up, the underlying debts must be paid or settled. Once that happens, you can positively impact your score with payments on a mortgage, car, gas card, small trade lines, debit cards that report to credit bureaus, and similar accounts.

Question 3

Can the creditor call my work?

Accepted Answer

Yes, the creditor can contact you at work subject to the restrictions under the FDCPA. Pursuant to the FDCPA, collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there. Debt collectors do not include employees of the creditors themselves.

Question 4

What if I cannot make the monthly payment?

Accepted Answer

It depends on the reasons underlying the non-payment. If your financial circumstances have changed (ie. lost your job or a significant source of income), we may need to re-evaluate your options including bankruptcy. If it’s an isolated incident, we try to work with clients to get them back on plan.

Question 5

Do you do bankruptcy?

Accepted Answer

We do not offer any kind of bankruptcy services, but we can recommend lawyers who we are confident can help folks who need to pursue bankruptcy.

Question 6

What if I get sued?

Accepted Answer

Less than 10% of our current accounts in workout are in litigation. Whether you are sued depends on how fast we can put together settlement monies, how much you owe, which bank is owed, and how long it’s been since your last payment to the bank. In the event you are sued, we will represent you in the suit for $500 plus the cost of filing an answer on your behalf. We represent you all the way thru trial, if necessary.

Question 7

What do I need to dispute an error?

Accepted Answer

To dispute an error, you need proof that the error is a valid error. Contact McCarthy Law to find out more.

Question 8

How long does a delinquent account report?

Accepted Answer

Delinquent accounts report for 7 years from the date of first delinquency.

Question 9

How long does an inquiry remain on my report?

Accepted Answer

Legitimate inquiries remain on your credit report for two years. If you did not authorize the inquiry that would be something that you should dispute.

Question 10

How can I fix something that is not reporting correctly?

Accepted Answer

You would need to dispute the error with the credit reporting agencies. You can either dispute the error by mail, online or you can let McCarthy Law dispute the error for you for free. As a law firm we know exactly how to dispute the error so that you get it fixed immediately.

Question 11

What are the costs of hiring a student loan lawyer?

Accepted Answer

Our services are offered on a flat fee basis calculated as a percentage of the debt. Typically, we can settle our clients’ debt for 55-60 cents on the dollar and without the need for bankruptcy. If our clients end up being sued, we represent them through the trial for $500 plus the cost of filing the answer.

Question 12

What is the difference between federal student loans and private student loans?

Accepted Answer

While federal student loans are offered by the government, private student loans are offered by private-sector lenders. Interest rates for private loans are generally higher, cannot be forgiven, and are never subsidized. However, private student loans are not need-based so you can qualify for a higher loan amount if you have good credit.

Question 13

Am I able to discharge a federal student loan without having to file bankruptcy?

Accepted Answer

In most situations, neither federal student loans nor private student loans are eligible to be discharged in bankruptcy. However, in some cases, you can have a federal student loan discharged if you experienced serious problems with your school, worked in public service, or have a severe disability.

Question 14

How can a private student loan attorney help me?

Accepted Answer

Student loan attorneys can provide you with legal advice, represent your interests during negotiations or lawsuits, resolve delinquencies, protect you from debt collector misconduct, and handle any credit disputes.

Meet Our Rhode Island Debt Attorneys