CREDIT CORNER NEWSLETTER
“GET RID OF DEBT – BANKRUPTCY – DEBT RELIEF – SETTLEMENTS – CREDIT REPAIR – GARNISHMENTS – STUDENT LOANS.”
In this issue:
1. Create a Budget in 3 Minutes.
2. What is the Cost of Filing Bankruptcy Chapter 7?
3. Can I File without an Attorney?
4. How Much Do I Need to Put Down to Start a Chapter 7?
5. Declaring Bankruptcy – What does it mean?
6. 6 tips to Increase your Credit Score.
7. What makes up my Credit Score?
THE 3 MINUTE BUDGET
Creating a budget can feel overwhelming and boring. So we created the 50/30/20 Budget. This is how it works:
Take 50% of all your net income (wages, commissions, investments, social security, trusts, stocks or any other form of
income and money you receive), the 50% is after tax money. This money should be used for your NEEDS such as rent
mortgage, food car gas electricity student loans copays clothes and anything else that is NEEDED IN ORDER TO LIVE.
Next, take 30% of all your net income and use to cover your WANTS, for example vacations, jewelry, restaurant food,
fancy clothes, electronics, Starbucks and all other expenses that you would like, but that are NOT NEEDED TO LIVE.
Finally, the remaining 20% of all income should be put away for SAVINGS. There is nothing like having money for a
“rainy day.” Try to save as much as possible and aim for 20% of all your next income.
The “3 Minute Budget”
WHAT IS THE COST TO FILE CHAPTER 7 BANKRUPTCY?
How much does it cost to file a Chapter 7 bankruptcy?
1. Mandatory Court Filing Fee – $335.00
2. There are two mandatory credit and budget courses to take over the phone – $20.00
3. Attorney’s Fees: Ranges from $1,500 to $2,000, depending on case complexity.
[Mention this Newsletter and receive an instant $200.00 discount on a Chapter 7 Bankruptcy]
WHAT IS THE COST TO FILE CHAPTER 13 BANKRUPTCY?
How much does it cost to file a Chapter 13 bankruptcy?
1. Mandatory Court Filing Fee – $310.00
2. Attorney’s Fees: Ranges from $3,000 to $4,500, depending on case complexity.
CAN I FILE BANKRUPTCY WITHOUT AN ATTORNEY?
Yes, you have every legal right to file bankruptcy without an attorney (Pro Se). However, the success rate is very low
compared to debtors that hire an attorney. Let’s review the numbers: Of the Chapter 7 cases filed Pro Se, only 46% of
these filings are allowed by the Courts. More than half of those filing alone, don’t get rid of their debts and their cases
are dismissed. With an attorney, the success rate for a successful bankruptcy filing jumps to 97%.
HOW MUCH MONEY DO I HAVE TO PUT DOWN TO BEGIN
$100 – At Grant Phillips Law, we understand times are extremely hard. The Coronavirus has hurt millions of hard
working Americans. We want to help. We want to give back to our community and so to start a Bankruptcy Chapter
7 case for $100.
FOR $100 WILL YOUR LAW FIRM STOP THE COLLECTION CALLS AND HARASSMENT?
Yes, at Grant Phillips Law, $100 makes you a formal client. You are free to let ALL your creditors and debt collectors
and collection lawyers that you have hired an attorney and give them our number. Let us deal with your creditors.
You work on rebuilding your life. Our law firm will stop all your creditors from contacting you again by phone, text
and letter. We are here for YOU. Let us alleviate your stress.
“The Coronavirus has destroyed countless lives and left many without jobs and savings.
We all have a responsibility to help our fellow citizens and neighbors.”
WHAT DOES IT MEAN TO “DECLARE” BANKRUPTCY?
To file bankruptcy and declare bankruptcy is the same thing. Bankruptcy is a legal process created to eliminate debt
and provide a fresh start to debtors. The process formally and legally begins with the official filing of the necessary
paperwork with the local bankruptcy court. Once filed a case number will be generated. At this time the debtor has
formally declared bankruptcy. They have put their creditors, the court and the world on notice that they have filed,
declared or lodged a bankruptcy filing. According to the dictionary, declare means “to make known formally.” Thus,
when filed, a bankruptcy is “known” and the debtor has declared bankruptcy.
6 TIPS TO INCREASE YOUR CREDIT SCORE:
1. EARLY AND FULL – Pay your credit card balance each month in full and before you receive the bill in the
mail. For example you have a credit card and right now you owe $50 and the payment is due in 2 weeks.
Make the payment TODAY for the FULL $50 and your score will rise very quickly.
2. SLOW AND EASY – Rebuilding credit is not as difficult as it seems. Time & Tips will increase your scores.
3. SECURED CREDIT CARD (REPORTING AS CREDIT CARD) – Obtain a Secured Credit Card. This is a credit card that
takes the money it extends to you and keeps it in “escrow” in case you default. There are secured credit cards
that work this way BUT that REPORT TO THE CREDIT AGENCIES like it is an actual credit card. This helps
your score as you can get a secured card for $100 credit and use it 1 time a month to buy a soda for example
and pay on time and in full and the payments will be reported as Credit repayments and increase your score.
4. DON’T PAY – PULL YOUR FREE REPORTS – if you need to look at your credit, try to obtain those copies you
entitled to free every year from the credit agencies. They are free. Before paying a company, look for the free
credit reports you are entitled to from Experian Equifax and Transunion every year.
5. EXPERIAN BOOST – Go to the Experian Website. Search for “Credit Boost” this is service offered directly from
Experian to increase your score by at least 10-15 points. At the time of writing this, the service is free.
6. On-time payment history is the most important factor in your credit score, accounting for 35% of your total
score, according to FICO. Pay on time!
WHAT MAKES UP YOUR CREDIT SCORE?
1. Payment history, is 35% of your score, and includes your history of repaying account debts.
2. Credit utilization, is 30% of your score, it shows your credit usage versus your credit limits.
3. Length of credit history is 15% of your score. It shows how long you’ve had active credit accounts.
4. Types of credit, is 10% of your score, and shows the variety of your accounts.
5. Credit inquiries, is 10% of your score it shows the number of inquiries made to your credit profile.